Future Partners

Potential candidates for investment will be banks and non-banking financial institutions with a focus on advanced stage micro and small and medium sized enterprises finance(MSME banks) that demonstrate the potential for high growth, possess forward and modern thinking management, and demonstrate clear and transparent ownership and equity structures.
In cases where it does not already exist, the potential to develop a sound and marketable SME lending component must be easily and clearly available and welcomed. We will invest in a broad range of MSME banks, but particularly in those that show a willingness to open up, compete nationally, maintain a positive view to foreign and international investment, adhere to good Corporate Governance and seek to develop cross-border business and to meet demand in underserved markets. In addition we will invest in other financial services areas such as Mortgage Lending, Insurance and Asset Finance. Dfe partners will work principally to build capacity in MSME banks with the help of its Investment Partners to help address:

• Business Strategy
• Strengthen business processes and financial controls
• Provision of Banking Information Technology Systems (MIS)
• Introduction and transfer of product offering such as the development of business–to-consumer electronic commerce, trade finance, asset finance
• Management development
• Staff training in the delivery of MSME oriented best practice
• Improve risk management and treasury functions
• Resolve issues of corporate governance

Banks lacking the experience and technology needed for an effective MSME lending programme and support. Hence, if a potential portfolio financial institution is not is a position to currently serve many MSMEs, but if it is willing to pursue this profitable and growth generating activity wit h the Fund's support and know how, they will also be considered to be a valid investment candidate.

We may also arrange direct medium term debt facilities for investee companies from time to time on an as-needed basis, with the view to maximizing the potential return to the equity investments made by us , through the additional leverage capacity th at our equity investment should generate. We will not invest in such debt financing ourselves however .

These areas require urgent attention if the banks in the Region are to play an active enhancing role in the development of the MSME sector. We aim to provide a positive and lasting legacy, transforming communities through investing in and creating trustworthy financial institutions specifically for the MSME sector. Importantly the Fund will bring together its key performance measure of financial return, with enrichment to all its stakeholders:

The banking institutions invested in

• Working with investments to achieve globally accredited standards of corporate governance
• Capital, know how and accessing international lines of credit

Our investments' clients and customers

• Providing access to financial products from institutions with a reputation for trustworthiness
• Easing access through process innovation

Communities

• Developing financial infrastructure to help move the informal economy into the formal economy
• Delivering sustainable wealth generation in local economies ensuring that the environmental implications are fully addressed

Dfe partners will actively advise and support senior management of investee institutions to facilitate the rapid scale up of operations, consolidation and, in some cases, integration into the formal financial sector. The ability to attract, develop and retain key management talent is a core value critical to an institutions success. Proven management will, in turn, be pivotal to facilitating the cross border transfer of resources, business models and skills. We will work very closely with management teams and ensure that our interests to grow the value of institutions are closely aligned and appropriately rewarded. This investment strategy, combined with the added value of targeted capacity building should result in the delivery of significant value appreciation.

We aim not only to strengthen the capital base of the institutions which become our partners, but in addition provide access to international credit lines, banking and product expertise, process and systems.