Investing in profitable women-owned SMEs will spur wealth creation and employment generation, including increasing the skills and wages of employees and making progress in the fight against poverty.
Small Enterprise Assistance Funds Alexander Dixon Vice President – Africa Tel: 202-737-8463 Empowering African Women Entrepreneurs
The Makeda Fund: The Big Picture Investment Capital for Women-Run SMEs SMEs are the backbone of modern economies. The Fund will invest in African SMEs as the region tries to join the global community. The Fund’s focus on women-owned and managed SMEs will allow it to address the gap in investment caused by business size and insufficient credit. Investment in SMEs has proven to deliver developmental, as well as financial, returns
The fight to alleviate poverty in Africa is dependent on the regions ability to facilitate sustainable private sector growth and improved economic opportunities.
Investing in women-owned and managed SMEs addresses the root causes of poverty by helping people feed their families, buy homes, get health insurance, save for retirement, send their children to school, and plan for their futures .
Investment: Investing in women-owned and managed SMEs in Africa to improve the daily lives of Africans, and to produce scalable and sustainable business growth with profitable returns.
Development: Creating stable and secure jobs for unskilled and semiskilled individuals who then receive training, see significant growth in their wages and overall benefits, and are then able to begin to plan for their families’ futures that can end the cycle of poverty.
investing in improved housing
preventive health care
education for their children
Returns: The near absence of investment in Africa’s SMEs to date offers an untapped market of opportunity for growth and investment with returns on a social as well as financial level for the investor and the community.
Structure and valuation - development of financial projections and appropriate investment structure and terms including preliminary valuation
Stages of investment selection and due diligence process Makeda Fund will build on SEAF’s extensive investment experience in conducting due diligence on SME investments. Procedures include: POTENTIAL PROSPECT APPROVE CANDIDATE 100 20 3 6 10 2
Every $1 dollar invested in SMEs, generates $12 in the local community
In most OECD countries, SMEs generate two-thirds of private sector employment and are the principal creator of new jobs (OECD).
In the SMEs in which SEAF has invested, 84% of new jobs go to unskilled and semi-skilled workers.
SMEs train employees and increase wages and benefits .
SMEs benefit a host of stakeholders --from its employees, suppliers, customers, and competitors, and, through tax payments, social security contributions and frequent philanthropic donations, local government and community.
We believe that if we can combine the natural inclination of SMEs to rely on local and known suppliers with the Fund’s strategic focus on gender, we will be able to demonstrate substantial developmental benefits beyond the commercial success of each investment.
The Makeda Fund: A Chance to Make a Difference
The Makeda Fund represents an opportunity to:
Make a visible and important impact both developmentally and commercially
Demonstrate that gender need not be a barrier to commercial success in Africa
Provide a model that is capable of expansion elsewhere in Africa and throughout the developing world
Thank you for your attention and interest Small Enterprise Assistance Funds Alexander Dixon Vice President – Africa Tel: 202-737-8463 Small Enterprise Assistance Funds Alexander Dixon Vice President – Africa Tel: 202-737-8463