SAM 2017


Parallel sessions


Below is the complete list of parallel sessions offered during the African Microfinance Week.

Only those registered with the SAM 2017 in possession of their entrance ticket can take part in the parallel sessions.


Tuesday, October 10

16.00 - 17.30


1.1 Promoting the capacity of financial institutions to unlock the potential of MSMEs

Organised by Enterprise Partners (100% ethiopian)

Major Themes:

  • Improving lending operation through product development
  • Collateral valuation
  • Risk management
  • Financial and operational reporting
  • Governance

Context:

Enterprise Partners currently implements two financial institutions capacity building projects for improved financial access to MSMEs:

  1. WEDP (Women Entrepreneurship Development Project): WEDP aims to address key constraints hindering access to finance for MSEs. Key bottlenecks from the supply/MFIs side include MFIs misconception of the risk and potential of the MSME segment, fear of mission drift,  lack of appropriate products and traditional appraisal systems, preventive collateral requirements (physical asset, high collateral coverage, limited options), and limited institutional and staff capacity in relation to resource mobilization, governance, risk management etc.
     
  2. SMEFP (Small and Medium Enterprise Finance Project): this intervention aims at up scaling MFIs capacity to address SMEs, which are above their ordinary target groups. It also works with banks to downscale their loan portfolio by reducing their loan size and serve SMEs. SMEFP leverages on the capacity building imitative under WEDP and upgrades the product, system, knowledge and skills to suit SME lending.

Moderator: Kinfemichel Yibkaw Abraha (Enterprise Partners)

Intervenants : Kenno Itana (Enterprise Partners), Maurice Koppes (Enterprise Partners), Hajera Mohamed (Enterprise Partners)

 

EIB EU SLOGAN B English RVB 72

1.2 EIB solutions for supporting SMEs: Investing in private equity

Organised by EIB

Major Themes:

  • Increasing access to finance creates economic development, financial inclusion and job creation.
  • Economic activity may be held back by high barriers to entry into the financial services market.
  • Investment in financial services should be accompanied by incubators, venture capital funds and FinTech.

Background:

The financial inclusion of SMEs is a major driver of economic development and job creation on the continent, both of which can address the root causes of intra- and inter-national migration. One way to stimulate SME growth is through investments in private equity. However, in many developing African countries the private sector is relatively weak and fragile, and both the capital market and private equity industry are at an early stage of development. The focus should therefore be put on early-stage capital for start-ups (especially FinTech start-ups), both pre-revenue and pre-profit, as well as venture capital.  

The EIB has had an office in Addis Ababa since July 2015, and will draw on its experience in Ethiopia for this session.

 

Moderator: Yves Ferreira (EIB)

Speakers: Thierry Artaud (M-Birr), Berhane Demissie (CEPHEUS), Eleni Gabre-Madhin (blueMoon), Rahel Kidane (Entreprise Partners)


1.3 Support structures for SMEs: support and access to finance for SMEs in WAEMU

Organised by Making Finance Work for Africa

Major Themes:

  • Non-financial services play a decisive role in developing SMEs that are financially viable and bankable.
  • Public institutions and other development partners can do more to reinforce support structures that provide non-financial services for SMEs.
  • A more structured dialogue with the financial sector would benefit SMEs, as would more accessible support tools.
  • Support tools for SMEs can be adapted to different contexts and therefore deserve to be shared.

Background:

Just as SMEs require financial services and a positive business environment for success, they also need non-financial services (advice, strengthened governance). Support structures help SMEs improve their management structures (in terms of formalisation, improved organisation and planning). They also create and disseminate tools that reduce information asymmetries, such as rating systems that can reduce perceived risks, improve the transparency of SMEs and in turn motivate investment into SMEs by financial institutions. These services also allow SMEs to take advantage of emerging opportunities in their markets.

This parallel session draws on the experiences of many members of the network of support structures for SMEs in WAEMU set up by MFW4A; it will illustrate the important role of non-financial services in the development and financing of SMEs. Over the course of several years, these members have each developed tools and services to best support SMEs.

Although these tools have often been developed in a national context, most can be adapted and applied to other countries; these tools include scoring systems and financial coaching services. Enriching experiences with SMEs, their management, and the financial sector deserve to be shared and encourages in different situations. 

Moderator: Hugues Kamewe Tsafack (Making Finance Work for Africa)

Speakers: Dorothée Gounon (Centre de Promotion et d’Encadrement des PME - CePEPE), Soyibou Ndao (Agence de Développement et d’Encadrement des PME - ADEPME), Ismaël Sawadogo (Maison de l’Entreprise du Burkina Faso - MEBF)

connexus

1.4 Applying a holistic approach to agricultural MSMEs development and finance 

Organised by Connexus 

Major Themes:

  • Agribusinesses often have a good understanding of the inherent risks and opportunities within their target markets.
  • Credit and liquidity risks are reduced when there is a clear end buyer.
  • Business Advisory Service providers can discover blind spots and address potential risks or concerns that might keep investors at bay.
  • BAS providers can help reorder financial and operational management in order in a way that makes agribusiness more profitable, and therefore more attractive for investment.
  • Through a cash-flow approach to lending, financial institutions can help MSMEs grow at pace that balances market opportunity and necessary cash or collateral reserves.

Background:

By studying a real agribusiness in Ghana, this session will guide participants through the thoughts and analysis of the different players in a potential growth opportunity that could improve rural incomes and create jobs for small farmers.

The risks and opportunities of the business will be presented from three lenses:

  1. The agricultural business owner/manager;
  2. The Business Advisory Service (BAS) provider who has helped other agricultural SMEs in this value chain become operationally and financially stronger;
  3. The financial institution that considered the risks associated with lending and/or not lending to this agricultural value chain actor.

In discussing these perspectives, we will help participants understand how each player perceives risk and opportunity and what types of information can facilitate the successful flow of agricultural finance, thereby creating growth, jobs and a more competitive business.

This session will highlight the successful approach used by the USAID-FinGAP project in Ghana, which offered a combination of financial and non-financial services to small, medium and large agribusinesses. In just three years, this approach has helped to facilitate more than $110 million in new investments associated with the rice, maize and soy value chains in Northern Ghana. 

 

Moderators: Anita Campion (Connexus), Melissa Matlock (Connexus)

Speakers:  Charles Abaka-Yanskon (AB Intel Limited)William Ahiadormey (Agricare), Andrew Ahiaku (Barclays Bank Ghana)

logo ada print

1.5 Sustain the activities of young entrepreneurs: how to manage risks related to their financing

Organised by Young Entrepreneurs / ADA

Major Themes:

  • Important economic potential of young people for MFIs.
  • Possible integration of young people despite the risks they represent.
  • Services: loans, savings, and non-financial services.

Background:

Young people are traditionally worse-served by MFIs for the following reasons:

  1. Lack of experience
  2. Lack of financial history
  3. Few physical guarantees as collateral
  4. Major geographic mobility
  5. Limited access to land

Young people therefore present a greater risk to MFIs of unpaid loans than do other marginal populations.
Services that enable MFIs to mitigate these risks can be put in place with a narrow selection of profiles as well as a specific configuration of products for young people that allow them to engage in the economy more effectively.

Moderator: Jérémie Chapet (ADA)

Speakers: Tezera Kebede Bekele (PEACE), Lubna Shaban (CYFI), Kodjovi Sogan (FUCEC), Eyob Tesfaye (United Nations Capital Development Fund - UNCDF)


Wednesday, October 11

9.00 - 10.30

Ada

2.1 Key players of SME growth: Incubators, Accelerators and Business Angels

Organised by ADA

Major Themes:

  • SMEs require access to finance to increase revenues and number of employees.
  • The services offered by accelerators and incubators are a key factor in the development of SMEs.
  • Business Angels also play an important role in financing SMEs.

Background:

Recent studies show that SMEs participating in accelerator’s programs increase their revenues as well as their number of employees, their capital and have more access to loans. This is a reality in the countries of the Global North and South.

The diversity of the services offered by accelerators and incubators are important to support all types of SMEs. These services include mentoring, coaching, training, building a network for entrepreneurs and access to finance.

Likewise, Business Angels can help SMEs especially in the area of funding. In addition to increasing the financial capital offer, the presence of Business Angels can also help increase the ability of SMEs to attract more financing, in particular to meet their working capital requirements.

The purpose of this panel session is to show how these support structures work (the selection of SMEs, services offered during and after the program) with a special focus on their role in access to finance. The interactive side of the session will also attempt to define how MFIs can establish partnerships with these organisations in order to better support African SMEs.

Moderator: Christian Baron (ADA)

Speakers: Elisabeth Gaydon (Afric'Innov), Patrick Kagabo (Connectus Trade Consult Ltd), Johnni Kjelsgaard (GrowthAfrica), Stephen Gugu (ViKtoria Ventures / InVhestia)

SocialPerformance400x129

2.2 How Social Performance Management can increase the effectiveness of lending to MSMEs 

Organised by SPTF-CERISE

Major Themes:

  • Common challenges specific to SME lending can be addressed with certain strategies.
  • Financial Service Providers can use results from an SPI4 evaluation to assess their current state of practice and identify areas that require improvement.
  • The Universal Standards for Social Performance Management help FSPs lend more successfully to SMEs.

Background:

Data shows that financial service providers (FSPs) that lend to SMEs typically encounter unique difficulties. There are several common challenges, including conducting appropriate risk management analysis, developing adapted products, and training staff. These types of challenges arise both within small microfinance institutions that are moving upstream and banks that are moving downstream. This panel will identify the most common areas of weakness and propose solutions based on field experience. It will also show the relevance of the Universal Standards for Social Performance Management both to the assessment of current practice and the conception of specific action plans to strengthen performance.

 

Moderator: Katie Hoffman (SPTF)

Speakers: Bonnie Brusky (CERISE), Clément Bassinga (ACEP Burkina), Lucia Spaggiari (Microfinanza Rating)

FAO logo Blue 2lines en

2.3 How to unlock investments in agricultural sectors with a potential for growth (1/2)

Organised by FAO

Major Themes:

  • There is an increased availability of data, tools, technologies that go beyond the standard loan analysis and appraisals.
  • Properly designed financial products and services can be offered to small agricultural producers and MSMEs in a sustainable and profitable way.
  • A holistic approach to the value chain and the interdependency of its actors is necessary to reduce risks and costs in agricultural financial services
  • MSMEs, if properly supported, can help develop inclusive business models where linkages between buyers and small actors are strengthened in a mutually beneficial way.
  • Technical support is a non-financial cost that should not be covered by a financial institution, but it is nevertheless important for financial institutions to develop strategic alliances and partnerships with all existing actors in the sector.

Background:

We will analyse cases of MSMEs operating in agricultural value chains with rising national and regional demand, more specifically in the sector of roots and tubers crops, such as cassava, potato and yam. Despite the increasing demand and related higher economic value of these crops, agricultural producers still struggle access finance. This is partially because financial institutions lack the resources to properly identify these business opportunities and develop products and services that can overcome the main barriers to agricultural credit (e.g. high risk, lack of collateral, high costs).

At the end of the session, participants will be familiar with innovative and successful cases of agricultural financing and investment. Such information and knowledge generated will be instrumental for financial institutions, policy-makers, development agencies and service providers, who will be able to promote investments and finance not only agricultural MSMEs, but also all the other actors involved in their value chains, e.g. input suppliers, producers, traders, retailers, wholesalers, etc.

Moderator: Massimo Pera (FAO)

Speakers: Constant Bognon (Benin), Daniel Kalbassou (Crédit du Sahel), Cécile Voigt (Positive Planet)

sos faim

2.4 Cooperative development and financings 

Organised by SOS Faim

Growth of social enterprises that support rural financial institutions: a case study of economic initiatives from organizations of producers. 

Major Themes:  

  • Economic initiatives supported by organizations of producers are interesting potential clients for the rural financial institutions.
  • The social impact of this collaboration is important because of the intersection of the financial sector with the rural social economy.
  • The member-based structure can be mutually beneficial to the social businesses (through a more equitable distribution of revenues) and the financial institutions (through reduced operation costs). 
  • There is a shared need to rely on the member base that can allow the development of skills (management, finance, governance, etc.) and also an honest discussion of the issues the cost of financial services in the most rural areas and the environmental effect of this economic activity.

Background:

The economic endeavours launched by organizations of producers (OP), most notably in the form of cooperatives, are an integral part of the African economy, especially in rural areas. They play a role in the social economy that necessitates a socially responsible business conduct and impact. These economic initiatives not only consolidate the revenues of the agricultural producers (who are simultaneously the members and the owners of the cooperative), but also are a stable source of salaried jobs.

This system of cooperative financing therefore leads to fairer agricultural employment. The financial access created by these OPs – whether it is an individual loan (seasonal loan or investment loan) or a collective loan (marketing loan) – brings development to rural areas most frequently marginalized. 

This session shares three concrete examples of collaboration between rural financial institutions and economic initiatives supported by OPs (in particular cooperatives).

Senegal, in the Louga region – Mali, in the Office of Niger zone – Ethiopia, in the Oromo region.

 

Moderator : Laurent Biot (SOS Faim)

Speakers: Sorsa Debela Gelalcha (WASASA Microfinance), Mamoutou Kané (FASO JIGI), Charles Kayumba (Duterimbere), Mansour Ndiaye (Union Financière Mutualiste de Louga)

AFD - FPM

2.5 Crowdfunding: the missing link in the business finance chain in Africa

Organised by AFD / FPM

Major Themes:

  • Challenges of the crowdfunding development in Africa;
  • Positioning of crowdfunding actors in the business financing chain;
  • Join crowdfunding with traditional financing actors (banks, investment Funds, MFIs, etc.);
  • Mobilization of the African diaspora to finance the productive economy of Africa;
  • The need for a regulatory framework conducive to the development of crowdfunding in Africa to unlock its potential and secure its development.

Background:

Crowdfunding, which is in full swing in developed countries, is still embryonic in Africa even though it seems to be adapted to meet its challenges of human, social and economic development.

The strength of crowdfunding and its adaptation, under certain conditions, to Africa, make it a major opportunity for its economic and social development. The regulation of this new and innovative activity remains a major challenge for its development and the creation of a framework favorable to the development of crowdfunding will enable Africa to bring new sources of financing adapted to the needs of SMEs and startups:

Crowdfunding platforms for lending and investment prove to be an effective solution in terms of accessibility, speed of implementation and mutual risk management in order to strengthen the own funds of companies and finance their working capital requirements.
The equity crowdfunding provides a capital financing solution adapted to startups and innovative projects that lack financing because of the risky nature of these projects. It is also a powerful promotional tool allowing projects to spread beyond the borders of their country of implantation.
Crowdfunding fills a void in the equity gap by financing startups and SMEs in the early stages of development (seed, R&D, creation, etc.). This will allow firms to leverage and access other more conventional sources of finance (banks, investment Funds, etc.).

Africa will also be able to rely on crowdfunding to mobilise diaspora savings for development projects.

ModeratorThameur Hemdane (FPM / Afrikwity)

Speakers: Mylène Chouzenoux (FADEV), Gilles Lecerf (Iroko-project), Julie Guillonneau (AFD)


11.00 - 12.30

Ada

3.1 Challenges facing actors financing SMEs

Organised by ADA

Major Themes:

  • New mesofinance institutions that provide solutions to the problem of the « missing middle » through financing of Small and Medium Enterprises are being created.
  • At the same time, more microfinance institutions are branching out into the financing of SMEs.
  • What challenges are facing these institutions?
  • What innovative solutions can be implemented in response to these challenges?

Background:

The SME sector is seeing new financing options emerge in the form of institutions with a business model that specifically targets SMEs as well as in the form of microfinance institutions that are slowly reaching into SME finance. These financial institutions face many challenges, including operational and financial challenges.

The panelists of the session, professionals from a variety of backgrounds, will share the challenges they have encountered during the growth of their organisation and the solutions that have discovered to best respond to the funding needs of SMEs.

 

Moderator: Sarah Canetti (ADA)

Speakers: Ruben Dieudonné (Microcred), Jean-Luc Konan (COFINA), Joyce C. Murithi (MicroSave), Representative from ASUSU SA

Mastercard Foundation

3.2 Envisioning agriculture as a business for youth in Africa: the keys to success

Organised by Mastercard Foundation

Major Themes:

  • Young entrepreneurs need to be better equipped at presenting their ideas as a viable business proposition.
  • Young people can demonstrate management skills to financial institutions to ensure the received funding will be properly managed.
  • Modernizing agriculture in Africa will require attracting youth to take up farming as a business, which includes creating an enabling environment for young farmers to access technology, training and finance.
  • There is a misconception that agriculture needs to be “sexy” to attract for young people, but it simply needs to make business sense.
  • MSME policy and programmatic engagement should reflect the diversity of the market, which includes micro and small, rural and urban, formal and informal, and women-led enterprises.

Background:

This session will explore contextual issues surrounding envisioning agriculture as a business for youth. We will delve into the impact this has in terms of job creation, particularity for young people. Our discussion will be guided by a series of questions, including:

  1. What are market constraints for lending to young people?
  2. How can we mitigate these risks?
  3. What differentiates young people from their competition?
  4. How do you finance growth without collateral?
  5. How can financial institutions ensure the success of their investments in young farmers?

Two MasterCard Foundation speakers will address the different lessons learned from working with different business at different stages in their development. A guest from a financial institution with explain the different funding options available to MSMEs, and finally The Federal Micro and Small Enterprises Development Agency of Ethiopia will reinforce the importance of providing tailored services for youth seeking funding for an agricultural venture. 

 

Moderator: Sambou Coly (Mastercard Foundation)

Speakers: Sirjeff Dennis (Jefren Agrifriend), Eleni Gabre-Madhin (blueMoon), Jean Bosco Nzeyimana (Habona), Tezera Kebede Bekele (PEACE)

FAO logo Blue 2lines en

3.3 How to unlock investments in agricultural sectors with a potential for growth (2/2)

Organised by FAO

Major Themes:

  • There is an increased availability of data, tools, technologies that go beyond the standard loan analysis and appraisals.
  • Properly designed financial products and services can be offered to small agricultural producers and MSMEs in a sustainable and profitable way.
  • A holistic approach to the value chain and the interdependency of its actors is necessary to reduce risks and costs in agricultural financial services
  • MSMEs, if properly supported, can help develop inclusive business models where linkages between buyers and small actors are strengthened in a mutually beneficial way.
  • Technical support is a non-financial cost that should not be covered by a financial institution, but it is nevertheless important for financial institutions to develop strategic alliances and partnerships with all existing actors in the sector.

Background:

We will analyse cases of MSMEs operating in agricultural value chains with rising national and regional demand, more specifically in the sector of roots and tubers crops, such as cassava, potato and yam. Despite the increasing demand and related higher economic value of these crops, agricultural producers still struggle access finance. This is partially because financial institutions lack the resources to properly identify these business opportunities and develop products and services that can overcome the main barriers to agricultural credit (e.g. high risk, lack of collateral, high costs).

At the end of the session, participants will be familiar with innovative and successful cases of agricultural financing and investment. Such information and knowledge generated will be instrumental for financial institutions, policy-makers, development agencies and service providers, who will be able to promote investments and finance not only agricultural MSMEs, but also all the other actors involved in their value chains, e.g. input suppliers, producers, traders, retailers, wholesalers, etc.

Moderator: Massimo Pera (FAO)

SpeakersZacharie Eloundou Owona (PADMIR), Kenneth Mbonye (MAAIF), Philippe Rumenera (SNV)

GrameenFoundation

3.4 Challenges of social business financing in Sub-Saharan Africa 

Organised by Grameen Credit Agricole Foundation

Major Themes:

  • The choice of investors should be thoughtful and if possible be complemented with flexible personnel who have the necessary resources to adjust to the growth and development of the business that will follow an increase in capital.
  • Long-term operations create a trusting and transparent relationship with the many different active parties.
  • It is important to be responsive to changes in consumption and proactive in following new developments in the area.
  • Maintain a strong administration surrounded by competent and professional people.
  • Understand and have a solid command of the value chain.  

Background:

This session presents two examples of Social Businesses, one in West Africa in Senegal and the other in East Africa in Kenya. We will look at how these two businesses have grown and how they have succeeded in accessing finance by opening up to foreign investors.

We will see how the business in Senegal benefitted from two original external investors (Danone and I&P) as well as the Foundation Grameen Credit Agricole and later the Caisses of the Groupe Credit Agricole. We will also look at what allowed its technological strategy to respond so effectively to the business’s problems. We will also consider how a family business in Kenya finally decided to open up to foreign investors (Foundation Grameen Credit Agricole and Kampani), the challenges this posed and how they achieved their target growth.

In both of these cases we will examine how the businesses created direct job opportunities and commercial outlets for thousands of rural people. 

 

Moderator: Eric Campos (Fondation Grameen Crédit Agricole)

Speaker: Mieja Vola Rakotonarivo (Nutrizaza), Wairimu Muthike (ACRE)

FMO Logo Color.jpg

3.5 Partnerships in the FinTech Era

Organised by FMO

Major themes:

  • There are many opportunities for collaboration amongst MFIs, traditional banks, FinTech companies and Mobile Network Operators.
  • Benefits of collaboration to MSME customers: reduced structural costs, innovation, new services and revenue streams.
  • Challenges: identifying potential partners, lack of information, cost of direct and isolated integration of the FinTech with the FI. 
  • Independent middleware (sandbox) is a possible solution to these problems as it provides a controlled and secure environment for multiple FinTechs and FIs to interact, allowing them to evaluate many new innovations at the same time.
  • Cross-regional solution- and information sharing can increase the accessibility of FinTech solutions on the African continent.

Background:

FinTech solutions have the potential to impact the whole financial value chain and therefore enable financial institutions (FIs) to reach more customers, including MSMEs. The following digital innovations have facilitated the growth and greater efficacy of financial institutions.

  1. Identification technologies (finger- and/or iris scans) allow for better and faster ‘know your customer procedures’.
  2. Alternative credit scoring methods can assess the creditworthiness of MSMEs that lack a financial track record through alternate data footprints (information from smartphone use, social networks and psychometric tests).
  3. Loan disbursement can be improved through mobile, internet and agency banking to reach more rural MSMEs.
  4. Digital models also reduce operating costs, allowing FIs to more profitably serve MSMEs who make smaller-scale transactions.
  5. The loan portfolio can be better monitored if clients use cloud computing and business monitoring apps.

The session includes real-life examples of partnerships between FIs and FinTechs and brings together a range of experts from the field.  

Moderator: Lonneke Noteboom (FMO)

Speakers: Sameer Segal (Artoo), Antonio Separovic (Oradian), Martin Van Rooij (Above & Beyond), Taye Chemdessa (VisionFund Ethiopia), Gera Voorrips (Triple Jump), Gera Voorrips (Triple Jump)


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