The document provides an overview of private sector investment opportunities in Ethiopia. It finds that while private sector development is a government priority, access to financing remains a key constraint, especially for small and medium enterprises. The strategy proposes providing technical assistance to mobilize various sources of local and foreign investment capital in order to stimulate greater private sector investment and job creation.
"The playbook captures the journey of 26 FinTech hubs in emerging markets, their experiences and learnings in the process of building a strong financial services ecosystem. This report serves to facilitate hubs to think global and act local through an appreciation of global trends, local drivers and regional opportunities."
The playbook captures the journey of 26 FinTech hubs in emerging markets, their experiences and learnings in the process of building a strong financial services ecosystem.
This report serves to facilitate hubs to think global and act local through an appreciation of global trends, local drivers and regional opportunities.
Efl Juhudi webinar presentation: Using phsycometrics for smallholder credit s...Malia Bachesta
As part of a Learning Lab Webinar series to highlight and showcase the work of our partners Entrepreneurial Finance Lab (EFL) and Juhudi Kilimo – a Mastercard Foundation Fund for Rural Prosperity Winner – explain the basics of psychometric credit scoring and share learnings from real world experiences.
Together, governments, entrepreneurs and corporations can spur growth across the G20. The EY G20 Entrepreneurship Barometer 2013 enables each G20 nation to identify the strengths in its entrepreneurial ecosystem. Find out which countries are getting it right, and which have lessons to learn.
For more information, please visit: http://www.ey.com/GL/en/Services/Strategic-Growth-Markets/The-EY-G20-Entrepreneurship-Barometer-2013
"The playbook captures the journey of 26 FinTech hubs in emerging markets, their experiences and learnings in the process of building a strong financial services ecosystem. This report serves to facilitate hubs to think global and act local through an appreciation of global trends, local drivers and regional opportunities."
The playbook captures the journey of 26 FinTech hubs in emerging markets, their experiences and learnings in the process of building a strong financial services ecosystem.
This report serves to facilitate hubs to think global and act local through an appreciation of global trends, local drivers and regional opportunities.
Efl Juhudi webinar presentation: Using phsycometrics for smallholder credit s...Malia Bachesta
As part of a Learning Lab Webinar series to highlight and showcase the work of our partners Entrepreneurial Finance Lab (EFL) and Juhudi Kilimo – a Mastercard Foundation Fund for Rural Prosperity Winner – explain the basics of psychometric credit scoring and share learnings from real world experiences.
Together, governments, entrepreneurs and corporations can spur growth across the G20. The EY G20 Entrepreneurship Barometer 2013 enables each G20 nation to identify the strengths in its entrepreneurial ecosystem. Find out which countries are getting it right, and which have lessons to learn.
For more information, please visit: http://www.ey.com/GL/en/Services/Strategic-Growth-Markets/The-EY-G20-Entrepreneurship-Barometer-2013
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This report for the G20/OECD Task Force on Financial Consumer Protection is based on extensive data collection and analysis of measures implemented by jurisdictions in response to the COVID-19 pandemic and longer-term implications.
In 2013, the ban on general solicitation of accredited investors was lifted, causing the largest change to securities laws in decades. While everyone from startups to hedge funds will enjoy new liberties in investor marketing and outreach campaigns, it’s critical that the new rules are followed to a T, eliminating the chance for exemption rescission.
A decade before we literally relate finance to the banking sector. The import and quality of finance has transformed and has been evolved dramatically by the period. This is primarily due to technology integration and evolution of myriad hues of financial structures and domains globally. Modrika helps you to take at the ground layer of these domains and sub domains. Thus, it helps you to get deeper perception of the financial complexity, giving you financial wisdom and enlightenment to attractive and accomplish meteoric career.
The EY G20 Entrepreneurship Barometer 2013: Italy profileEY
Quanto è importante l'imprenditorialità per il futuro dell'Italia? Il nostro studio mette in evidenza la forza degli imprenditori, che rappresentano uno dei principali motori di crescita economica.
Per maggiori informazioni vi preghiamo di visitare: http://www.ey.com/GL/en/Services/Strategic-Growth-Markets/The-EY-G20-Entrepreneurship-Barometer-2013
This Seminar will initiate a reflection regarding the extent to which innovation within the Financial Technology (FinTech) sector can and should be regulated.
The case will be illustrated with examples of the UK and EU market (e.g. the Financial Conduct Authority (FCA)’s Project ‘Innovate’ and the European Commission’s Single European Payment Area (SEPA)) and the implications for innovation will be discussed.
This will be complemented by introducing an Asian perspective as to the capacity of specific jurisdictions to frame and catalyse innovation, focusing on specific challenges and opportunities in Mainland China and Hong Kong.
Hélène François looks at investment law reform in Southeast Asia. This presentation was made at the 2nd meeting of the Regional Policy Network on Investment, on 9 December 2015.
Find out more at http://www.oecd.org/daf/inv/investment-policy/seasia.htm - http://www.oecd.org/daf/inv/mne/pfi.htm - http://www.oecd.org/globalrelations/seaforum.htm
A strong corporate governance framework is essential for MENA economies as they strive to boost economic growth, strengthen competitiveness and build prosperous societies. The G20/OECD Principles of Corporate Governance and the OECD Guidelines on Corporate Governance of State-Owned Enterprises are a reference in order to build such a framework. This report assesses the corporate governance landscape in the MENA region by identifying challenges and proposing policy options for reform. The findings of the report are based on an analysis of policies and practices in four thematic areas: boosting access to finance and capital markets, improving transparency and disclosure, achieving gender balance in corporate leadership and enhancing the governance of state-owned enterprises in MENA. Overall, the report finds that MENA economies have made progress in strengthening corporate governance frameworks in recent years, but that the region still faces challenges in adopting and implementing corporate governance measures that support economic efficiency, sustainable growth and financial stability.
The Recommendation on Financial Literacy was adopted by the OECD Council on 29 October 2020, during the OECD Ministerial Council Meeting. It presents a single, comprehensive, instrument on financial literacy to assist governments, other public authorities, and relevant stakeholders in their efforts to design, implement and evaluate financial literacy policies. It is part of a holistic approach to financial-consumer issues, where financial literacy, together with improved financial access, adequate consumer protection, and regulatory frameworks, are expected to support financial resilience and well-being. Find out more about OECD work on financial literacy at www.oecd.org/financial/education
Financing for Development - Financing MSMEs for Economic Growth and DevelopmentR. M
A digital artifact aimed at proposing a financing solution to the credit issue faced by MSMEs in Nigeria. The target of this presentation is a cross section of public sector agents who can engage the development community to seek solutions to the aforementioned issue. The presentation proposes two major solutions; technical assistance to make Nigeria's business environment conducive to businesses, and a financing solution that allows for flow of much needed credit to the MSME sector through the creation of a national development bank. The importance of funding MSMEs cannot be overstated; they are drivers of not only economic growth but serve service other development agendas such as poverty eradication, reduction in wealth imbalances, employment generation etc. Consequently, it is imperative to provide support to MSMEs, especially in developing countries where they lack access to finance, if we are to achieve a key portion of the SDGs.
Mobility Adoption in Asian Wealth Management Firms: A Way ForwardCognizant
The rising affluence of younger, hyper-connected investors across Asia is disrupting the staid wealth management market, pushing traditional players to build mobile experiences that strengthen client-advisor relationships, reduce operational costs and improve internal productivity.
This report for the G20/OECD Task Force on Financial Consumer Protection is based on extensive data collection and analysis of measures implemented by jurisdictions in response to the COVID-19 pandemic and longer-term implications.
In 2013, the ban on general solicitation of accredited investors was lifted, causing the largest change to securities laws in decades. While everyone from startups to hedge funds will enjoy new liberties in investor marketing and outreach campaigns, it’s critical that the new rules are followed to a T, eliminating the chance for exemption rescission.
A decade before we literally relate finance to the banking sector. The import and quality of finance has transformed and has been evolved dramatically by the period. This is primarily due to technology integration and evolution of myriad hues of financial structures and domains globally. Modrika helps you to take at the ground layer of these domains and sub domains. Thus, it helps you to get deeper perception of the financial complexity, giving you financial wisdom and enlightenment to attractive and accomplish meteoric career.
The EY G20 Entrepreneurship Barometer 2013: Italy profileEY
Quanto è importante l'imprenditorialità per il futuro dell'Italia? Il nostro studio mette in evidenza la forza degli imprenditori, che rappresentano uno dei principali motori di crescita economica.
Per maggiori informazioni vi preghiamo di visitare: http://www.ey.com/GL/en/Services/Strategic-Growth-Markets/The-EY-G20-Entrepreneurship-Barometer-2013
This Seminar will initiate a reflection regarding the extent to which innovation within the Financial Technology (FinTech) sector can and should be regulated.
The case will be illustrated with examples of the UK and EU market (e.g. the Financial Conduct Authority (FCA)’s Project ‘Innovate’ and the European Commission’s Single European Payment Area (SEPA)) and the implications for innovation will be discussed.
This will be complemented by introducing an Asian perspective as to the capacity of specific jurisdictions to frame and catalyse innovation, focusing on specific challenges and opportunities in Mainland China and Hong Kong.
Hélène François looks at investment law reform in Southeast Asia. This presentation was made at the 2nd meeting of the Regional Policy Network on Investment, on 9 December 2015.
Find out more at http://www.oecd.org/daf/inv/investment-policy/seasia.htm - http://www.oecd.org/daf/inv/mne/pfi.htm - http://www.oecd.org/globalrelations/seaforum.htm
A strong corporate governance framework is essential for MENA economies as they strive to boost economic growth, strengthen competitiveness and build prosperous societies. The G20/OECD Principles of Corporate Governance and the OECD Guidelines on Corporate Governance of State-Owned Enterprises are a reference in order to build such a framework. This report assesses the corporate governance landscape in the MENA region by identifying challenges and proposing policy options for reform. The findings of the report are based on an analysis of policies and practices in four thematic areas: boosting access to finance and capital markets, improving transparency and disclosure, achieving gender balance in corporate leadership and enhancing the governance of state-owned enterprises in MENA. Overall, the report finds that MENA economies have made progress in strengthening corporate governance frameworks in recent years, but that the region still faces challenges in adopting and implementing corporate governance measures that support economic efficiency, sustainable growth and financial stability.
The Recommendation on Financial Literacy was adopted by the OECD Council on 29 October 2020, during the OECD Ministerial Council Meeting. It presents a single, comprehensive, instrument on financial literacy to assist governments, other public authorities, and relevant stakeholders in their efforts to design, implement and evaluate financial literacy policies. It is part of a holistic approach to financial-consumer issues, where financial literacy, together with improved financial access, adequate consumer protection, and regulatory frameworks, are expected to support financial resilience and well-being. Find out more about OECD work on financial literacy at www.oecd.org/financial/education
Financing for Development - Financing MSMEs for Economic Growth and DevelopmentR. M
A digital artifact aimed at proposing a financing solution to the credit issue faced by MSMEs in Nigeria. The target of this presentation is a cross section of public sector agents who can engage the development community to seek solutions to the aforementioned issue. The presentation proposes two major solutions; technical assistance to make Nigeria's business environment conducive to businesses, and a financing solution that allows for flow of much needed credit to the MSME sector through the creation of a national development bank. The importance of funding MSMEs cannot be overstated; they are drivers of not only economic growth but serve service other development agendas such as poverty eradication, reduction in wealth imbalances, employment generation etc. Consequently, it is imperative to provide support to MSMEs, especially in developing countries where they lack access to finance, if we are to achieve a key portion of the SDGs.
This presentation by Miriam Koreen and Gert Wehinger was made at the 3rd OECD-GFLEC Global Policy research Symposium to Advance Financial Literacy "Harnessing Financial Education to Spur Entrepreneurship and Innovation" which cutting-edge policy issues and identify key research directions, as well as practical solutions, with a view to advancing financial literacy for micro, small and medium-sized enterprises (MSMEs). Find out more at http://www.oecd.org/daf/fin/financial-education/3rdglobalpolicyresearchsymposiumtoadvancefinancialliteracy.htm
Funding Sme – MSME FINANCE – DEMAND & SUPPLY - Part - 9Resurgent India
The present domestic market conditions do not provide enough opportunities for the MSME sector for raising low cost funds. To improve the flow of credit there is a need to provide low cost finance to the MSME sector, which has limited working capital and is dependent exclusively on finance from public sector banks. The cost of credit in the Indian MSME sector is higher than its international peers. A transparent credit rating system, simplification/reduction in documentation for accessing finance, providing interest rate subvention to the MSME sector must be taken into consideration in order to maintain the growth of the MSME sector.
Empowering MSMEs - Role of Banks & Financial Institutions, IT, Skill Developm...Resurgent India
MSMEs are nurseries for entrepreneurship, often driven by individual creativity and innovation, and make significant contribution to country’s GDP, manufacturing output, exports and employment generation. Moreover, MSMEs are imperative for achieving the national objective of growth with equity and inclusion.
Peer-to-peer lending and equity crowdfunding have grown rapidly since the crisis and have attracted the attention of governments who wish to facilitate alternative forms of capital allocation. This report investigates the nature of Financial Return crowdfunding, including outlining the main benefits and risks of the industry and the global regulatory environment the industry currently operates in.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
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At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
5. 1. Sector Overview
Private sector development is part of the strategic
direction for the government
Unmet Demand
Cotton production in Ethiopia
meets less than 50% of demand
from industrial companies, with
demand expected to increase
threefold.
Government Priority
A strategic sector for the
Ethiopian economy:
Private sector financing
Employment targets 99,653
persons 2019/20
Private sector defintion
How many enterprises are out there?
Contribution for GDP?
Importance of private sector
TP II targets
Finance is a key obstacle for private sector development
Source: Nash International BV (2016); WTO (2014); Innovision (2016), GoE (2016) 5
6. Sector Overview
EP investment strategy focuses on equity financing
and debt financing
6
Target
market
Debt Financing Equity Financing
Small and medium enterprises Medium and large enterprises
This is not part of the sector overview. It is pa
of the strategy section 4. The strategy needs t
be explained also. i.e. the SMEs are too small fo
most FDIs, larger enterprises are better served
by banks for their debt financing needs, etc.
8. 8
Sector Overview
Local Direct Investment Market
Business Diversification
Local Direct
Investment
Vertical integration
Horizontal Integration
Local Financial InstitutionsSMEs
Working Capital financing
Leasing
Integration (vertical) whereby family-owned company expand the business operation through cross or whole ownership of companies within its supply
chain for backward or forward linkage, each company within supply chain produces a different product or service, design to strengthen its supply chain,
reduce its production costs, capture upstream or downstream profits, or access downstream distribution channels.
Integration (horizontal) or lateral integration, is merger or an acquisition of companies along the production process line designed to increase its size,
diversify its product or service, achieve economies of scale, reduce competition, or gain access to new customers or markets.
The integration can be via buyout, merger, share purchase or equity swap.
9. Sector Overview: Debt Financing
The credit market is dominated by the public sector
Source: WB (2015) 9
• Public sector dominates the credit market with 64% market
share and annual growth of 37%;
• Private sector credit market trails behind at 28% of the credit
market , decreasing annually from 14.5% in 2014 to 5.7% in
2015;
• With no bond market, the debt market mainly comprises
treasury bills and government bond;
• Treasury bills are mainly supported by mandatory purchase of
bills equivalent to 27 % of new loan disbursements of private
banks;
• With a mandate to hold 40% of bank portfolio in short-term
credit, Banks are experiencing liquidity crunch;
• Public sector debt is increasing and less available capital
aggregated for long-term investment; and
• Large-scale public investments financed domestically squeezes
the availability of credit for the rest of the economy.
Composition of Domestic Credit Stock
10. Sector Overview: Financing and firm size
Financing needs vary by firm size and stage of
development
10Source: SME Finance Forum website
Micro Small Medium Large
Long
Term
Me
dium
Term
Short
Term
Financing Needs
Firm
Size
Private Equity
Leasing Finance
Trade Financing / Factoring
Capital
Markets
Bank
Financing
Available
Financing
Options
11. Sector Overview: SME finance
Finance plays a key role in the establishment and
growth of the SME sector
11
Source: Fanta (2012)
*’Equb' being a local term for ROSCAs (Rotating Credit and Savings Association)
Source of
seed
money
Source of
funds for
operations
Source of
funds for
growth
• 76% of SMEs surveyed identified access to finance as the most serious challenge to
establish a business
• More than 50% use own savings and only 2% bank loan to start their business
• Limited start-up capital, inability to achieve desired size upon start up
Financing working capital remains as challenging as raising start-up capital
More than 45% of SMEs raise operational finance through retained profits, while
33% raise it through ‘equb’*
Only 4% of SMEs manage to access bank overdraft facilities and short-term loans
• 75% of SMEs finance business expansion from retained earning. While 3% from
‘equb’ and 12% from bank loans.
• Retained profits often too small to invest in capacity expansion or diversification
into new markets
• Lack of assets for collateralisation means limited growth and continued
disenfranchisement for SMEs
A study conducted on 100 SMEs from the manufacturing sector in Ethiopia revealed the level of
financing constraint faced by SMEs as they launch and try to grow their business:
12. Sector Overview: SME finance
Enterprise credit needs are not met by the financial
sector
12
Micro
(6% have a loan)
Small
(only 1.9% have a loan)
Medium
(20.5% have a loan)
Large
(35.5% have
a loan)
Enterprise size
18 banks
35 MFIs
Credit provided by The missing middle
Too small for banks and
too large for MFIs:
Small enterprises are
underserved in the
credit market
Source: World Bank (2016)
13. 13
Sector Overview
SME needs for loan capital
Stages of Business Lifecycle
Capital source Incubation/Seed Start-up Growth Established Expansion Mature
Equity X X
X X X X
Debt
X X X X X
This is better illustrate
Y Diagram. Lots of ex
of this in other
studies/documents
15. New market segment and diversification of risk
Value added of non-financial services, additional income and customer loyalty
Provision of non-financial services and additional income
One of the fastest growing sectors of the economy
Leverage on enabling environment improvements
(i.e. credit bureau, asset registry)
Opportunities
SMEs are an untapped market for financial institutions
15
16. Opportunities
Injection of additional liquidity is an incentive to enter
new markets
16Source: IMF (2015)
Liquidity in the banking sector has been declining
Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Mar-15
Liquid assets to total assets 32.7 32.7 20.6 23.2 16.2 10.9
Liquid assets to short-term
liabilities
42.7 43.4 26.7 30.1 21.5 14.7
Total loans and bonds to total
deposits
- - 94.0 93.9 100.6 107.3
As a result, financial institutions have little incentive to innovate, enter new markets or take
additional risks. The sector conditions are:
Highly illiquid
Minimal competition
Highly profitable
Standard products, with minimal innovation
17. Opportunities
A credit line with impactful technical assistance can be
a catalyst for additional funds
17Source: WEDP
Original credit line from the World Bank:
845,732,694 birr
DBE has revolved 65,709,488 birr
MFI’s own funds:
241,586,048 birr
Global Affairs Canada:
69,812,840 birr
Italian Development Cooperation:
~ 370,590,390 birr approved
JICA:
~1.1 billion birr expected
Evidence from WEDP
18. Opportunities
Lease finance market creates an opportunity for
businesses who have been unable to provide collateral
18
According to a survey conducted by the World Bank, SMEs are discouraged or voluntarily exclude
themselves from applying for a loan
• A third of the respondents did not apply for a loan because collateral requirements is too high
(Collateral rates at 234% in Ethiopia compared with 120.8% in Kenya).
Lease financing provides opportunity for SMEs to overcome the collateral issue as the equipment
acts as a collateral. The regulatory framework and establishment of leasing companies is the first
step in creating a vibrant lease finance sector.
2013:
Revised Capital
Goods Finance
Business
Proclamation
2013 onwards:
Development
of new leasing
directives (5 of
18 directives
issued)
2014:
Establishment of 5
regional leasing
companies
(amounts of up to
1m birr)
2016:
Establishment of
leasing unit
within DBE
(amounts from
1m to 30m birr)
Leasing companies have liquidity. However, have very low capacity to utilize funds with bottlenecks at
the customer application stage and procurement of lease equipment.
Timeline: Lease finance sector development
20. Constraints
Access to finance is the top business environment
constraint identified by firms in Ethiopia
20Source: World Bank Group, Enterprise Survey (2015)
0
10
20
30
40
50
%ofFirms
Ethiopia: Top Ten Business Environment Constraints (percentage of firms)
Ethiopia Sub-Saharan Africa
21. Constraints
Both supply side and demand side issues are
contributing to the low level of financing to SMEs
21
Supply side
constraint
Demand side
constraint
Low liquidity
Ability to provide necessary
documentation
High collateral requirement Bankable business plan
Under utilised credit bureau Inability to meet collateral
requirement
Lack of asset registry system Information (especially on
leasing)
Standardised products /
minimal innovation
Capacity gaps in back office
operation (MIS/risk
management)
Skill gap
23. Vision
Increased deployment of equity and loan capital
stimulating investment and job creation
Coherent private capital deployment (both equity and debt financing)
engaging all capital provides
£130M invested by 2020
5,000-7,000 job by 2020
Please see Annexe for Theory of Change
EP Targets:
23
Foreign Indirect
Investment
Foreign Direct
investment
Local Indirect
investment
Greater investment in local and foreign businesses
Growth of companies leading to employment creation
Local Direct
investment
24. Strategy
EP provides technical assistance in support of a larger
intervention framework
24
Financial Services
to SMEs
Enabling
Environment to SMEs
BDS to SMEs
Technical Assistance
DBE
Leasing Companies
MFIs & Commercial
Banks
Line of Credit DBE:
Leasing Window
Lending Window
Diagnostic on
insolvency and
creditor / debtor
regime
Collateral Registry
(hardware &
software)
Standard BDS to
SMEs
Specialized
Advisory Services
(e.g. market
linkages etc.)
Increase access to finance for SMEs
25. Strategy
A snapshot of current SME interventions
25
Women Entrepreneurship
Development Project
Financial Institution TA
SME Finance Project
Financial Institution TA
MSE Guarantee Fund
Assessment and Design
27. Annexe
Financial Sector Profile
27
Micro
Banks
MFIs
SACCOS
Informal
Leasing
Companies
• 18 banks, of which 2 are state owned (1 development bank)
• Significant growth in branch network reaching 3,045 branches by early 2016, of which 34.5% are
located in Addis Ababa. On average 30,281 people served per branch
• Total capital 41.12b birr (49.6 % public)
• Highly profitable, mostly from trade finance
• 35 MFIs, of which 5 of the largest regional MFIs XYZ
• 3.5m active client, of witch 45% are women
• 34.7 billion in assets
• 18,000+ SACCOs, with presence in most Kebele’s
• 529,000 members of which 47% are women
• Outstanding loan portfolio of 245m birr
• Vibrant informal sector with iqub (rotating savings and credit groups) and idirs (mostly used for
funerals)
• 5 regional leasing companies established in 2014 (Addis Ababa, Amhara, Oromia, SNNPR &
Oromia). Serving enterprises with up to 1m birr equipment requirement
• Leasing product also offered by DBE for amounts between 1m to 30m birr
• Only type of financial institution open to foreign investment
Insurance
Companies
• 17 insurance companies, of which 1 is state owned
• Total capital of 3.1b birr
• 414 branches, 54.4% in Addis Ababa
Source: NBE (2014/15)
28. Annexe
Financial Sector Profile contd.
28
Meso
Associations
GoE
Donors/NGO
s
Ethiopian Bankers Association: A membership organization representing 16 private and 2 state
owned banks. It provides knowledge and information sharing, capacity building and lobbying of
policies for the banking sector.
• The Government of Ethiopia, through the Ministry of Finance and Economic Cooperation and the
National Bank of Ethiopia plays a key role in setting policy, regulation, supervision, advisory
services and support for the overall development of the financial sector in the country. The right
enabling environment reduces cost of transactions and can encourage innovation.
• Donors and NGOs play a key role in the development of the financial sector.
• Donors with significant activity in the sector include: World Bank, DFID, IFAD, UNCDF, USAID, etc.
• Active NGOs include: Master Card Foundation, Bill and Melinda Gates Foundation, CARE, etc.
Macro
Association of Ethiopian Microfinance Institutions: A platform for the MFIs for knowledge
management, research, training, performance monitoring, lobbying, benchmarking and provisions
for technical assistance. Expected to play an instrumental role in the growth of the microfinance
industry through the newly established training institute and support for the development of
management information systems.
Source: NBE (2014/15)
29. JobsInvestmentNo.ofFIConstraintsAssistance
Increase jobs created in the wider economy
Additional investment in SMEs through increased
access to finance
Annexe
Theory of Change: Financial Services for SME
Appropriate
Products& services
on offer for SMEs
FIs skill to provide
leasing/working capital
to SMEs
DBE institutional
capacity
Better allocation of investment to the SME
sector
Improved
targeting of
SMEs
Improved asset
quality
Increased demand
from SMEs
FIs skill to manage
leasing/working
capital portfolio
Effective
utilization of
funds
Increased funds for working
capital and leasing
Improved
institutional
capacity to manage
resource
Innovative
products
Better risk
management
Better
portfolio
management
Increased
disbursement to
FIs
Better product to
serve SME sector
Lease equipment
management
process
Improved
sourcing and
management
Increased wealth and growth for SMEs
Initiative
OUTPUTOUTCOME
Increased disbursements by FIs to SMEs
IMPACT
TA SoW to be determined
FIs disburse to better SMEs.
DBE skill to serve
wholesale
leasing/loan market