Business Partners International East Africa The proposed project is an IFC equity investment of US$6.0 million in Business Partners International East Africa LLC (BPI EA or the Company), a greenfield private limited liability company that will provide tailored financing to underserved SMEs in East Africa. The project represents the evolution of IFCs relationship with Business Partners Limited (BP or the Sponsor), a South African SME investor with over 30 years of experience investing in over 70,000 SMEs.   IFC and BP have been partners in SME financing since 2004 when the two organizations set up Business Partners International (BPI) whose aim was to bring the successful BP SME financing business model to other Sub-Saharan African countries. Since 2004, BPI has set up four funds, including most recently the regional Southern Africa SME Fund that covers Zambia, Namibia and Malawi.  BPI EA is the evolution and scaling up of the SME financing model from a fund with a limited life and high set up costs to a more efficient and permanent vehicle that can provide the long term financing that SMEs need. The project has the unique opportunity to leverage the BP experience, processes, back-office and knowledge developed over more than 30 years of experience in high growth East African countries where SME financing is even more difficult to obtain than in South Africa.  BPI EA will invest in SMEs through its subsidiaries in Kenya and Rwanda where BPI is already active through the BPI Kenya and Rwanda SME Funds, followed by setting up a subsidiary in Uganda where BPI does not yet operate. BPI EAs Kenya subsidiary will to take over investing activities from the BPI Kenya fund and its Rwanda subsidiary will acquire 60% of the BPI Rwanda SME Fund. Increased access to finance for underserved segment - the Company will increase access to finance in SMEs in Kenya, Rwanda and Uganda, three IDA countries. According to the Doing Business'' report, SMEs in all three list access to finance as a major impediment to doing and growing their businesses. In addition, the Company will support SMEs outside of the main economic hubs with up to 40% of investments outside of the principal economic zones in each country where access to finance is even more limited (rural access to finance).  Address market need for long term financing and partnership - Due to its structure as a perpetual investment company, BPI EA can provide longer term financing to SMEs that lack access to long term financing.   Job creation - BPI Kenya has facilitated over 9,748 jobs as at February 2014, BPI Rwanda has facilitated over 1000 jobs, and BPI Southern African fund has facilitated 382 jobs. BPI EA is expected to likewise facilitate the creation and maintenance of jobs through the SMEs financed.  Targeted financial products - BPI EA will provide tailored financing products to SMEs and entrepreneurs that match cash flows of growing businesses better than bank loans and do not put undue strain on small enterprises with limited initial cash flow for interest payments.   Support of women owned SMEs - at least 35% of investments targeted to women owned businesses and entrepreneurs. BPI investment officers have specific women entrepreneur targets tied to compensation to ensure that reach to this segment is real.  Capacity building - BPI EA will bring best in class processes and investment know-how to additional countries and through technical assistance for entrepreneurs, which will be provided as an interest free loan to the investees.