BANCO DE MICROFINANCE DE MOZAMBIQUE Summary Of Project Information (SPI)       Project Name    Mozambique - Banco de Microfinanças de Moçambique      RegionSub-Saharan Africa   Sector   Project No10069   Projected Board DateApril 8, 2000   Company NameBanco de Microfinanças de Moçambique   Technical Partner and/or Major Shareholders    	The technical partner is IPC, a German consulting company with more than 20 years of experience in microfinance.    The major shareholders of Banco de Microfinanças de Moçambique (BMF) are:   * Banco Internacional de Moçambique (BIM), one of the largest commercial banks in Mozambique. BIM is owned by BCP/Atlantico (50%) of Portugal; and IFC (25%);   * Internationale Micro Investitionen AG (IMI)- a development-oriented investment company focusing on financial services institutions targeted at low-income strata in developing countries and transition economies. IMI was founded in Frankfurt on July 6, 1998 by IPC GmbH, and by IPC-Invest;    * IFC;    * Nederlandse Financierings Maatschappij Voor Ontwikkelingslanden N.V. (FMO), a Dutch semi-government-owned agency responsible for investing in developing countries.     The proposed shareholder structure is as follows: BIM: 30-35%; IFC: 20%; IMI: 20%; FMO: 20%; Mozambican government agency: 5-10%, for a total of 100%.    Project Cost Including proposed IFC investment    	The total project cost is estimated at US$2 million, with proposed IFC equity investment estimated at 20%.    Location of project and Description of site    	Banco de Microfinanças de Moçambique intends to start its lending operations in Maputo and open additional branches later on.    Description of Company and Purpose of Project    	IFC has been asked to have a 20% equity stake in Banco de Microfinanças de Moçambique, the first microfinance bank being established in Mozambique. The banks objective is to provide financial services specifically tailored to the demand of small and micro enterprises, who do not have access to commercial banks and are not the typical clientele served by NGO microfinance intermediaries.   This will be IFCs fourth investment in a financial institution in Mozambique. It will represent an important step towards IFCs greater involvement in the development of the Mozambican financial sector and will reinforce its continued commitment in providing access to financing for small and micro enterprises. Specifically, IFCs presence in this project will serve as a liaison between IPC and local banks (e.g. BIM) and will give comfort to potential additional investors. It will also make a valuable contribution to BMFs corporate governance.    The development objectives of the project will be achieved by: (i) providing resources to serve the credit demand of small and micro enterprises with no access to the formal financial sector; (ii) developing the ability of their management to deal with formal financial institutions on a commercial basis; (iii) serving as a role model for other institutions which also have the objective of commercial sustainability.    BMF intends to start its lending operations in Maputo and open additional branches later on. Its three main products will be: micro loans, small loans and house improvement loans.    Environmental Category and Issues    	This is a category FI Type 1 project according to IFCs environmental review procedure.  BMF has committed to establishing an environmental management system that will ensure that investments are consistent with applicable host country environmental laws and; designating appropriate individuals who will have responsibility for environment; attending IFCs environmental management workshops; submitting an environmental management plan; and submitting an annual environmental performance report.        Date SPI sent to InfoShop     March 9, 2000      This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384