Study and proposal of new concept for SME Finance

Study and proposal of new concept for SME Finance

Client

KfW bank

Period

07–10/ 2020

Country

Tunisia

Project description and context

In order to identify innovative approaches to SME financing and to complement existing financing projects, the German bank KfW has decided to conduct a study on VME-SME financing instruments in Tunisia, Morocco and Egypt. The objective of this study is to propose to KfW ideas for innovative and efficient SME financing instruments to examine them with the partners of the 3 countries and see their implementation in 2021.

This study is part of a large geographic scope, leading to coordination and discussion with the various teams working in the countries.

In support of a European partner, AMEF Tunisia participated in this mission to Tunisia.

Work carried out by AMEF Consulting

  • Literature and data review and analysis
  • Analysis of the SME financing ecosystem
  • Identification and analysis of key gaps in SME financing and barriers to access to finance
  • Development of concrete SME financing concepts which are particularly relevant and feasible in the specific context of the country.
Portfolio Categories:

MSME Financing 


Support in the Design and the Implementation of the SME Finance Strategy

Support in the Design and the Implementation of the SME Finance Strategy

Client

Digital Bank

Period

09/2020 – 06/2021

Country

South Africa

Project description and context

To support a Digital South African bank in its development in the SME segment, the Dutch Development Bank (FMO) has granted it a guarantee facility under the NASIRA program, to guarantee a share of the amount of credits granted to small and medium-sized enterprises. This guarantee facility targets women and young entrepreneurs.

In order to support the success of the use of this guarantee facility and the development of SME financing activity of the Bank, FMO took over the financing of technical assistance for this bank, to which AMEF Consulting contributed to support of a European partner.

The objectives of this mission are:

  • Develop and strengthen the internal capacity of the Bank to effectively provide funding to the Nasira target groups in South Africa through the introduction of new products and funding processes or enhancement of existing ones
  • Support the Bank in the development of sustainable non-financial services for target client groups
  • Develop the skills of the Bank’s teams in several areas through training and coaching, both in technical skills and soft skills

Work carried out by AMEF Consulting

  • Conduct an existing diagnostic to establish the baseline situation and refine the technical assistance program.

This diagnostic phase involved several actions:

  1. Documentary review and exchange meetings on different topics within the scope of the mission
  2. Conducting an online survey of around 600 VSE-SME companies
  3. Focus group animation
  • Client portfolio analysis and proposal for VSME client segmentation
  • Review of existing financing products and development of new products
  • Support for the development of the non-financial service offer for VSE-SME customers
  • Support the development of the marketing strategy on the VSME segment
  • Animation of trainings on several subjects for the Bank’s teams
Portfolio Categories:

MSME Financing 


Development of the institution capacity in SME Finance

Development of the institution capacity in SME Finance

Client

4 banks & 3 leasing companies

Period

04/2019 – 03/2023

Country

Tunisia

Project Context and Description

As part of an international consortium, AMEF Consulting has been retained by the German Development Bank KFW, to support 4 Tunisian banks  and 3 Tunisian leasing companies in the development of financing for VSMEs.

A line of credit of up to EUR 140 million has been made available to these seven partner financial institutions (PFI) to promote access to finance for this market segment.

The credit line is accompanied by a technical assistance program structured around three components:

  • Component 1: “Technical assistance to PFIs”
  • Component 2: “Technical assistance to the Central Bank of Tunisia (BCT) in the management of the credit line”

Component 3: “Non-financial services to VSMEs”

Work Done by AMEF Consulting

  • Participation in the coordination of the entire program
  • Diagnosis of IFPs and the organization of the VSE-SME segment for the definition of the various projects to be implemented as part of this support measure
  • Market study and proposal of a positioning and a development strategy on the VSE-SME segment
  • Review and development of the methodology for evaluating loans to VSEs and SMEs (methodology based on cash flows)
  • Review and improvement of financing and credit recovery processes
  • Determination of a marketing strategy and operational plan, including Digital Marketing, and of the commercial approach for the VSE / SME segment
  • Support for the definition and implementation of Environmental and Social Management Systems (ESMS) in accordance with international standards
  • Development of asset / liability management (ALM) and its tools, and the establishment of an ALCO committee
  • Diagnosis of information systems (IS)
  • Support for the management of the KfW credit line and preparation of its reporting.
Portfolio Categories:

MSME Financing Risk Management 


Développement du financement islamique des PME et des secteurs de l’agriculture, d’élevage et de la pêche

Support for the Development of TPME Financing for an Islamic Bank

Client

A Full Islamic Bank

Period

08/2018 – 08/2019

Country

Mauritania

Project Context and Description

As part of the African Development Bank’s SME Program, an Islamic bank in Mauritania has benefited from a technical assistance program to support it in financing SMEs in the agriculture, livestock, and fisheries sectors.

In partnership with a European firm, AMEF Consulting has contributed to the implementation of the technical assistance program for the bank, covering several areas: market research, development strategy in the SME segment, Sharia-compliant financing and investment products, financing procedures and financing risk analysis tools, risk management and training.

Travaux réalisés

  • Piloting the mission
  • Institutional diagnosis of the Islamic bank and the development of the technical assistance action plan
  • Organizing focus thematic groups: industrial fishing; artisanal fishing; agriculture and livestock; SMEs
  • Study of the SME market, agriculture, livestock, and fishing
  • Development of 5 Sharia-compliant products: Ijara, Salem; Mourabaha Istiradia; Istisnaa; Tawfir account
  • Developing funding procedures
  • Development of credit and liquidity policies
  • Elaboration of job cards
  • Training on Islamic finance instruments, financing risk analysis and customer relationship management.
Portfolio Categories:

Islamic Finance MSME Financing 


Strengthening the Analysis of the Financing Risks of TPMEs

Strengthening the Analysis of the Financing Risks of TPMEs

Client

A Leasing Company - SANAD

Period

2017

Country

Tunisia

Project Context and Description

As part of a line of credit granted to a leasing company by the SANAD fund, for the financing of TPMEs, a technical assistance program has been set up to support the company in strengthening its capacity to analyze and grant credit to small businesses. In this context, AMEF Consulting has contributed significantly to the realization of this project supporting an European partner.

Work Done by AMEF Consulting

  • Brief institutional diagnosis to better define the action plan for technical assistance
  • Developing an approach and fact sheet with micro, small and medium-sized enterprises (MSMEs) for any funding request
  • Development of an Excel approach and tool for analyzing and providing financing based on cash flows
  • Review of financial analysis indicators used and recommendations for new indicators
  • Review of the existing Credit-Scoring tool, Expert type, and proposal for improvements
  • Development of credit policy (did not exist before our mission).
Portfolio Categories:

MSME Financing 


Development of Institutional Financing Capacities for Micro, Small and Medium Enterprises

Development of Institutional Financing Capacities for Micro, Small and Medium Enterprises

Client

3 Retail Banks

Period

2016 - 2018

Country

Tunisie

Project Context and Description

In addition to a 50-million-euro line of credit granted by the German development bank KfW to 3 Tunisian banks, a technical assistance facility has been allocated to develop their institutional capacity to finance micro, small and medium-sized enterprises (MSMEs).

In this context and in association with a European partner firm, AMEF Consulting has contributed to the development of the approach and tools for financing MSMEs, by mobilizing a team of six consultants on this project.

Work Done by AMEF Consulting

  • Institutional diagnosis of the strategy, organization, and lending process to MSMEs to stop a bank-by-bank technical assistance plan
  • Defining and implementing a methodology and framework for analysis and funding for MSMEs, based on qualitative analysis and cash flows
  • Support for the implementation of the methodology and credit framework in a pilot phase covering several agencies
  • Study of the offer of financing of all types to MSME in Tunisia
  • Support for a quantitative study of the TPME market involving a field survey of a sample of 450 MSMEs
  • Support for the development of a CSR approach in the credit-granting process
  • Support for the development of value chain financing in the agriculture sector
  • Animation of several trainings for sales teams and credit analysts of pilot agencies
  • Tracking and piloting achievements.
Portfolio Categories:

MSME Financing