Frontier Banking in Africa The role of SME banking to deliver TBL Peter Hinton Enterprise Banking Group Paris, Nov 2006

Outline Introduction SME Definition SME banking - improving lives Development and profit TBL challenges in Africa Conclusion

Introduction

SME Definition

SME banking - improving lives

Development and profit

TBL challenges in Africa

Conclusion

Introduction EBG Regional banking group focused on SMEs IFSC holding company in Botswana Operating in Kenya & Rwanda TA $110m, 250 staff, 10 branches Strong management & emerging leaders Partners with FMO, Kfw, Dfid, USAID, IFC, Shorebank, Finmark Trust 10 countries by 2010, TA $1b,listable

Regional banking group focused on SMEs

IFSC holding company in Botswana

Operating in Kenya & Rwanda TA $110m, 250 staff, 10 branches

Strong management & emerging leaders

Partners with FMO, Kfw, Dfid, USAID, IFC, Shorebank, Finmark Trust

10 countries by 2010, TA $1b,listable

SME definition $250k-$1m 26-49 Medium $10k-$250k 6-25 Small <$10,000 1-5 V small Turnover Employees

SME banking – improving lives Lending to SMEs, savings from unbanked Botswana 15% unbanked Kenya 5m Direct impact - women, jobs, rural, education, savings, health & safety, environment, Indirect impact –SR, security Giving choice, meeting needs

Lending to SMEs, savings from unbanked

Botswana 15% unbanked

Kenya 5m

Direct impact - women, jobs, rural, education, savings, health & safety, environment,

Indirect impact –SR, security

Giving choice, meeting needs

Development and profit Healthy tension Sustainable TBL = development Value driven banks BRAC, Bangladesh Basix, India Fina, Kenya Measurement critical

Healthy tension

Sustainable TBL = development

Value driven banks

BRAC, Bangladesh

Basix, India

Fina, Kenya

Measurement critical

Kenya

TBL challenges in Africa Banks have to see the relevance Missing middle Missing role models - institutions Missing role models – people TBL, development and SME banking a good fit See the person

Banks have to see the relevance

Missing middle

Missing role models - institutions

Missing role models – people

TBL, development and SME banking a good fit

See the person

Conclusion SME banking can impact lives in the missing middle Have a multiplier effect can address missing role models contribute towards economic growth Your partner in growth and development

SME banking can

impact lives in the missing middle

Have a multiplier effect

can address missing role models

contribute towards economic growth

Your partner in growth and development