5 th Africa CIS Conference 13 th 14 th February 2020 AGF Business - - PowerPoint PPT Presentation

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Jul 01, 2023 143 likes •208 views

5 th Africa CIS Conference 13 th 14 th February 2020 AGF Business Model (1) MOBILIZE catalytic capital, in order to (2) UNLOCK and CHANNEL private capital from financial institutions to SMEs, in order to (3) Drive positive IMPACT on economy,

SLIDE 1

5th Africa CIS Conference

13th – 14th February 2020

SLIDE 2

AGF Business Model

(1) MOBILIZE catalytic capital, in order to (2) UNLOCK and CHANNEL private capital from financial institutions to SMEs, in order to (3) Drive positive IMPACT on economy, society and environment

FUNDERS AGF PFIs SMEs SOCIETY & ENVIRONMENT

AGF mobilizes catalytic capital AGF leverages on resources to issue guarantees to PFIs PFIs issue more financings to SMEs SMEs grow their businesses in sustainable way Economy, society and environment benefit

(1) (2) (3)

Catalytic capital

Guarantees
Capacity building
Loans
Equity
Revenues
Jobs
Energy efficiency
Economic growth
Employment
Climate

SLIDE 3

Leverage effect on each dollar of resources

$1 of capital $4 of guarantees (50% risk sharing) $8 of financings to SMEs

Private capital to SMEs Blended capital

SLIDE 4

Products designed to close the financing gap

Bank Fund Raising Guarantee to reduce resource gap Loan Guarantees (portfolio and individual) to reduce the collateral gap and perception gap Equity Guarantee to reduce the resource gap and perception gap Capacity development to PFIs to reduce the information gap, skill gap and perception gap Capacity development to SMEs to reduce the information gap, skill gap and perception gap

Banks / PFIs SMEs

Financial markets / Investors Equity investors

1 2 3 4 5 Financing Financial guarantee Capacity building 1 2 3 4 5

SLIDE 5

Key figures

40

Countries where AGF guarantee products are implemented

$1 Bn

Guarantees issued

120,000+

Estimated # of additional jobs created

5years

Average Guarantee Tenor

11%

f AGF portfolio on Green

Projects

137

PFIs Implementing AGF guarantee products

$2 Bn

Available financing for SMEs

125,000+

Estimated # of jobs maintained

2,200 PFIs staff trained [1,300 in Green Finance] 84,000+

Households connected to Solar Energy

21,000+

SMEs accessing guaranteed loans

$1.5 Bn

Loans disbursed to SMEs

30%

f SMEs owned by Women

60%

f SMEs Owned by Youths

Circa $8 Mn

tons of CO2 emission to be avoided by Green Projects