While poverty has decreased globally, fragile communities continue to lag behind in terms of development. For these communities to flourish, economic development is essential.
To support this, financial systems must be strengthened, investments in businesses provided and jobs need to be created. Small and Medium Enterprises (SMEs) play an crucial role in this. They constitute the largest employer in any given private-sector economy, create jobs and deliver essential products to underserved populations. However, in developing countries SMEs lack access to capital required to grow.
Inclusive Impact Investments bridges the finance gap by investing in local SMEs that have limited access to financial services.
“Today, access to finance is still by far the largest obstacle to growth for SMEs, particularly in low- and middle-income markets”
Est. $750bn demand
for SME loans ranging between 10k and 1 mio in Africa, Asia and Latin America (McKinsey, 2018)
We believe in the power of driven, positive, socially-dedicated entrepreneurs
Our investments are aimed to support SMEs to realize their full business potential and create social impact.
Currently, our investments are focused on Nigeria, Uganda and Vietnam. In these countries we local presence through team members and partner networks.
Tailor-made financial products
For each business we design an unique financial product ranging from debt to equity. Our sweet spot are commitments of €250K. The terms are defined to serve companies best; cash-flow based grace periods, performance-based interests, longer maturity and we do not charge administration fees.
Type of businesses we support
We focus on social-dedicated entrepreneurs. We support SMEs with good potential for growth and are creating social impact. The SMEs we serve are in process of scaling their business model. Typically, the businesses are locally owned and have limited access to formal capital. We aim to play a catalyzing role in attracting future external capital for these businesses. We do invest in start-ups.
- Great potential to create social impact
- Socially and environmentally responsible business model
- Driven local entrepreneur and management team with a relentless pursuit of mission
- Product/service model that is in potential scalable
- Compliance with our ESG criteria
- Strong track record and solid customer base
- Max. turnover €10 Million
- Min. turnover €300k (Uganda €100k)
- Break-even situation (at least operational profit)
- Solvency: min. of 20% after investment
- Own contribution: min. 20% (ration 1€ to 4€)
- At least 2 years (audited) financial statements
Where we do not invest in
- Cooperatives, farmer groups, savings, credit and cooperative organizations, NGO’s, private persons, listed companies and foundations.
- Companies active in real estate, project finance (housing, water irrigation and power plants), leisure (hotels, restaurants and travel agencies), private schools and private health clinics.
- We refer also to our exclusion list of sectors we will not invest in.