UsPlus’ Post

An insightful piece by Triodos Investment Management. https://lnkd.in/dxijnF5K Find out what UsPlus can do for your business: www.usplus.world #workingcapital #businessfinance #southafrica

As a farmer, how do you prepare your fields for the next harvest when the current crop has not yet been sold? And as a filmmaker, how do you shoot your next film when the revenues from your previous film have yet to come in? In South Africa, this is where entrepreneurs can turn to UsPlus that provides SMEs with working capital. Ryan Cameron, Managing Director UsPlus: "By working with us, they gain stability, can grow and hire more people." UsPlus is part of our Financial Inclusion portfolio. Fund Manager Florian Bankeman, CFA, CAIA: "Our investment means UsPlus can scale up and diversify its funding base - further bolstering South Africa's underserved SME sector." Read more about this innovative company on our website. #ImpactInvesting #FinancialInclusion #Fintech #EmergingMarkets #SMEs

Hloolo by Fetola, a new digital platform for green SMEs has recently been launched by Fetola, Nedbank, JPMorganChase and the Embassy of Finland to bridge the gap between green businesses and the growth finance they need. Catherine Wijnberg Puno Selesho Mark Lamani Ntobeko Boyana Jami Nash Kantha Naicker Maluta Netshaulu Rest Kanju Grant Prince Mohlokoa Ngoasheng Anton Ressel Abigail Khuluse Elmarie Goosen Santie Roy Grant Kelly Take the first step towards sustainable change - click here: https://lnkd.in/dU9twrGi #hloololaunch #circulareconomy #greenbusiness #finance #technology

Mauritius, July 1st, 2024 – Inside Capital Partners (“Inside”) is pleased to announce the successful first close of its second fund, Inside Equity Fund II (“IEF II”), with US$ 55 million in commitments. This initial round has been secured thanks to substantial commitments from both existing and new investors. Returning investors are Dutch Good Growth Fund (DGGF) and Terra Mauricia Ltd (one of the largest conglomerates in Mauritius). New investors in IEF II include U.S. International Development Finance Corporation (DFC - the U.S. government’s development finance institution), IFC - International Finance Corporation, a member of The World Bank Group, Swedfund International (Sweden’s development finance institution), Mauritius Investment Corporation (MIC) Ltd and BIO - the Belgian Investment Company for Developing Countries (Belgium’s development finance institution). Inside, a pioneering private equity firm specializing in supporting the growth of promising and impactful SMEs across the South East Africa region (primarily Zambia, Madagascar, Mauritius, but also Tanzania, Mozambique, and Malawi), extends its thanks to its investors for this opportunity to continue fostering sustainable growth in this overlooked region. This milestone marks a significant achievement in Inside’s ongoing commitment to long-term growth and development within the region. This second fund follows the successful deployment of Fund I, the first fund of US$ 35 million, which has been fully invested in six innovative and impactful companies. These SMEs are active in waste recycling, renewable energy, packaging, building materials and hospitality industries. IEF II will continue the strategy of supporting local champions across sectors that are meaningful for the region. “We are thrilled to reach this crucial milestone for our second fund,” said Jerome Lagesse, Managing Partner at Inside. “With a focus on making a long-term impact and being a change driver for a region dear to our hearts, Inside has made the deliberate choice of focusing on countries underserved by traditional capital providers and investing in developing local talent. Despite the current complex environment, the enthusiasm from our investors strongly recognizes our vision and certainly allows us to capitalize on the work started with the first fund by sending a positive message to the markets about the potential of this region. We invite strong entrepreneurs and talents, sharing the same mindset, to reach out to discuss collaboration opportunities.” For more information, please visit Inside’s website at www.insidecapital.net or contact [email protected].

There is a huge 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗴𝗮𝗽 for SMEs. Who can help fill it? Not banks. According to PwC’s 2023 report: → 1 in 4 SMEs in Europe experience severe difficulties in accessing finance, and others point to a liquidity squeeze. The European Investment Bank (EIB) found that: → Germany alone has a bank financing gap of €15 billion. To add to that, SMEs face the challenges of: > Supply chain disruptions > Decreasing revenue > Rising costs The issue of underfinancing has become a substantial concern for the wider economy. So how can help our local businesses? One answer is through crowdinvesting. Anyone can invest as little as 100 Euros. You can support SMEs in your community. And receive financial returns of 4% - 8%. It’s a win-win situation for everyone involved. Looking to invest or get funding? CONDA Crowdinvesting has had 200+ projects financed by 40K+ investors. Have a look at our current offers here: https://lnkd.in/djkt9W9Z #Fundraising #Startups #SMEs #Entrepreneurship #Business PwC Study: https://lnkd.in/ge_YcBvd

The ripple effect of this capital misallocation becomes more pronounced when considering the impact on innovation and entrepreneurship. SMEs are often the incubators of new ideas and technologies. Without access to credit, they are unable to innovate, meaning Kenya risks stalling its advancement in key sectors like fintech, agribusiness, and manufacturing.

In this article by the Business Daily, the publication highlights the growing role of private capital in funding #SMEs in Kenya. It highlights the various financial institutions that can provide debt or equity financing, and the benefits of seeking professional advice when making funding decisions. 👉Read more: https://lnkd.in/duyfbaC7

#Smallerenterprises make up 90% of #firms worldwide, and are crucial to #globaltrade But their #investments #abroad are #declining, risking untapped #developmentpotential This calls for #policyactions that better #support them to invest and thrive in #globalmarkets #Foreigndirectinvestment by small- and medium-sized businesses (#SMEs) has been falling in recent years. Between 2015 and 2022, the number of #overseasgreenfieldinvestmentprojects by SMEs #dipped by about 75%, according to a new UNCTAD report published on 6 February. “#SMEinvestment can be most #beneficial for development,” says Amelia U. Santos-Paulino, PhD, head of investment issues and analysis at UNCTAD. “Because these businesses are more agile, relying more on #localsuppliers and #partners, and less likely to #crowdout #localfirms.” SMEs can become a real #gamechanger, especially when globally, there’s increasing #competition for a #shrinkingpool of #largescaleprojects, and an accelerating trend towards #regionaleconomicintegration.

In a country like South Africa, where small and medium-sized enterprises (SMEs) make up 91% of formalised businesses, provide employment to about 60% of the labour force, and contribute roughly 34% to GDP, this means that truly inclusive economic growth cannot be achieved without strategically empowering these businesses to scale and thrive. Moneyweb #SME #Entrepreneurship https://lnkd.in/d2beSyRG

🚀 Private Equity Fund: A Development Solution for Vietnamese SMEs? In most developing countries, SMEs face a common challenge: a significant capital shortage. The International Finance Corporation (IFC) estimates that 40% of formal MSMEs in these countries are short approximately $5.2 trillion annually for business operations. In Vietnam, the credit crunch for SMEs is no exception, making bank loans a daunting task for many. Mr. Nguyễn Văn Thân, President of the Vietnam Small and Medium Enterprises Association (VINASME), has acknowledged this as one of the most persistent challenges facing the Vietnamese SME community. 💡 Is Private Equity the Opportunity SMEs Have Been Waiting For? According to Tyler Manh Dung Nguyen from the Maybank Investment Banking Group, Vietnam's capital market is still "nascent" compared to the Southeast Asian region. A significant portion of SMEs in Vietnam are either unaware of or uninterested in this capital channel, especially in traditional sectors. While this is a limitation, it also opens up opportunities for PE Funds. By the end of February, 14 funds from Japan, Hong Kong, Malaysia, and Thailand showed interest in the Vietnamese market—a positive sign indeed. 🌱 What's in it for SMEs? Accessing PE funds not only addresses the capital challenges but also helps elevate SMEs by enhancing their business management skills, developing business strategies, and implementing them. Success stories like Pizza 4P’s and Maison Marou are prime examples. "These companies have to meet stringent requirements in terms of corporate governance, transparency, business strategy, and legal compliance. This can significantly alter the mindset and stature of Vietnamese SMEs, which are still considered nascent," said Mr. Tyler Nguyễn Mạnh Dũng. The risk appetite of these funds requires businesses to demonstrate their capabilities, technology, products, or business vision. Read more at: t.ly/W1fUL (Vietnamese) Thank you, Tyler Manh Dung Nguyen, for your insights. I always welcome more perspectives from experts in this field.