"Emerging MFIs" are microfinance institutions that have good prospects for attaining financial sustainability within the next several years. These institutions are generally smaller and frequently newer organizations that are growing rapidly, providing products and services in particularly challenging regions or difficult market segments. They often pilot or introduce new or innovative products, services, and distribution channels. Frequently these institutions are transforming from non-governmental organization ("NGO") status and have not yet attracted significant investment from domestic or international capital markets, or worked closely with international institutional investors.
Focus: Sub-Saharan Africa and South Asia
The geographic concentration of the Frontier Fund is Sub-Saharan Africa and South Asia. The focus countries for the Fund are Cameroon, Ghana, Kenya, Mali, Nigeria, Senegal, Tanzania, Uganda, India and Pakistan. The Fund may also consider investments outside of these focus countries.
The Frontier Fund may provide equity or debt to emerging MFIs, with a general orientation toward equity investments. With its equity investments, the Fund will take substantial minority positions (10-30%) in order to be an active investor.