1. Investments through SME partnerships SOFIDan innovative sollution byDiogo Gomes de AraújoAfDB-EMRC SME Forum 6 June 2011Bridging the Missing Middle Gap in AfricaLisbon 2. Summary1.SOFID as an innovative solution2.SOFID vs. traditional banking3.Eligibility criteria4.What is on offer?5.Examples of projects 3. 1. SOFID as an innovative solution 4. 1. SOFID as an innovative solution• Portuguese DFI with SME focus• Regulated by Portugal’s Central Bank• HQ in Lisbon• Twofold mandate: – Support Portuguese companies and business partners investing in emerging and developing countries – Promote sustainable private sector development in those countries 5. 2. SOFID vs. traditional banking ADDITIONALITY: SOFID only participates in operations where it adds value• Sustainable investment: social andenvironmental responsibility, job creation,knowledge transfer, wealth distribution• Political comfort: public-private shareholders• Flexibility: adjust to client needs• Focus and specialisation: partnerships,products and markets 6. 3. Eligibility criteria• Minimum 20% Portuguese stake• Productive sectors (no real estate)• Brown and green-field projects• Economic and financial viability with social andenvironmental concerns• Preferably in PARTNERSHIP with local banks 7. 4. What is on offer?• Tailor made financial products Loans Guarantees Equity Funds• Financial services Financial advice Resource mobilisation 8. 4. Loans and Guarantees• Commercial terms (no soft money)• Grace period up to 3 years• Maturity up to 10 years• Hard currency• Local bank provides local currency 9. 4. Funds• ITF – EU-Africa Infrastructure Trust Fund• NIF – Neighbourhood Investment Facility• InvestimoZ – Portuguese Fund for Investment inMozambique 10. 5. Case study 1HIGEST • Poultry industry in Mozambique • Sells chicks and feed to local farmers • Buys back chickensLeading FI: Millennium bim • Frozen chicken is suppliedTotal investment: € 2 M• Network of “containerSOFID guarantee: € 0,5 M shops”Sponsor: Higest10 11. 5. Case study 2PREMAP• Production, supply and saleof precast concrete parts• Maputo and Dondo (MZ)• Upgrade operationsand expand productionLeading FI: SOFID capacityTotal investment: € 0,7 M • Locally produced goods forSOFID Loan: € 0,4 M the domestic marketSponsor: Concrepax 11 12. 5. Case study 3PRIO FOODS• Agricultural produce forthe food processing industry• 80 direct staff + 1,000 localfarmers• Sofala region (MZ)Leading FI: SOFID • Guarantee secured financeOther IF: BCI from a local bankTotal investment: € 2,3 M • Crop diversification andSOFID guarantee: € 1,7 M supply to domestic marketSponsor: Prio12 13. African sayingIf you want to go fast, run like the gazelle If you want to go far, run together likethe buffalo 14. Thank youDiogo Gomes de Araújowww.sofid.pt • [email protected]
Comments
Report "AfDB-EMRC SME Forum Session 8 Diogo Araujo"