Addo
July 2012
Definition
Impact Investment represents an emerging and fast evolving sector that that blends traditional development and risk capital investment. SNV has practiced impact investment advisory work for over 4 years mainly in Africa but across Asia and Latin America as well. More recently we ramped up the strategy to incorporate a newly articulated integrated value proposition. IIAS targets both the buy side, where we originate and present opportunities to asset holders of blended-mission risk capital, and on the sell side of the investment matrix, where we engage in make-ready capability development of eligible small holders and entrepreneurs. Our primary focus is and has been to delivery of capability and relevant patient investment capital to our core constituency small holders, SME and entrepreneurs along the whole value chain.
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Our Objectives
1. Promote resilient livelihoods and shared prosperity for BoP through capability development and job creation 2. Prepare (graduate) SMEs to make them investment-ready
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Our History
4-year history
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What We Offer
Pre-investment services:
Supply-side sourcing, Due diligence and Coordination
Capability Development
Management, Operational and Group Cohesion
Post-investment services:
Demand-side advisory & Technical Assistance Support
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Conduct SME client needs assessment based to determine potential impact on client and members as well as investing partners return criteria
Analyze, propose mitigation and hedging of identified potential risks via provision core technical assistance to SME Clients
Impact Investing
Advice on the optimal investment approach and structure to optimize financial and social returns for client and partner
Support enterprises to maximize growth and accelerate social impact while minimizing risks and improving quality
Develop objective, evidence-based social and financial impact assessments of projects and entire program
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Sustainability
Optimized upfront fee structure Long term value-driven compensation (typically 3-5 years) Leverage of multiple services across SNV offerings
businesses suitable for funding are often smaller than the threshold
of most fund managers and investors
Scaling-up
In fragmented sub-sectors such as honey, innovation is needed to achieve scale
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1. RENEWABLE ENERGY:
Waste-to-Energy Mini Hydro Projects Bio Gas Retrofitting & Carbon Capture
2. AGRICULTURE
Agro processing Livestock Processing Viticulture/Horticulture
CASE STUDIES
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The company
Created from a partnership between V&M Grain (agroprocessing) and Eco-MICAIA (social enterprise)
Sustainability:
environmental impact through modernization (end of burning of grass)
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SNV Support
Finance brokering
Value chain analysis Producer group strengthening Support to PR and marketing Trust building between partners Facilitating a fair model for producer relations Engaging LCBs to train Bee Promoters Building capacity of associations and supporting their legalization
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Investment
US$ 250,000 through Beira Agriculture Development Corridor Equity Aim: modernize equipment Challenges:
High cost of procuring to assure quality control: hard to scale To maintain quality producers need training: requires grant funding
Expected Impact:
Expected outreach from 3,000 to 10,000 small holders in 3 years
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More Information
See SNV ESA Handbook
https://intranet.snvworld.org/Library/Knowledge%20Library/IIAS%
20guidebook%20Toolkit%20B5.pdf
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Thank you
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