Microfinance Services for MSMEs

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Microfinance Services for MSMEs
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Financials
Corporate and Retail Banking
Business Model Description

Provide financing or deliver microfinancing products that provide loans, savings, insurance and related products to low-income groups and Micro, Small and Medium Enterprises (MSMEs) to ease access to credit and enable income-generating activities.

Expected Impact

Strengthen economic productivity and resilience of MSMEs and low-income households with access to affordable and reliable financing.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
20% - 25% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 50 million - USD 100 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Reduced Inequalities (SDG 10) Decent Work and Economic Growth (SDG 8)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Partnerships For the Goals (SDG 17) Gender Equality (SDG 5)
Sector Sources
  • 1) UNCDF & Finmark Trust. 2020. Eswatini Financial Inclusion Refresh. https://www.uncdf.org/article/6570/eswatini-financial-inclusion-refresh 2) Ministry of Finance. 2017. National Financial Inclusion Strategy for Swaziland 2017-2022. https://www.afi-global.org/publications/national-financial-inclusion-strategy-for-swaziland-2017-2022/ 3) Ministry of Economic Planning and Development. 2019. National Development Plan 2019/2020-2021/2022. https://www.gov.sz/images/CabinetMinisters/NDP-2019-20-to-2021-22-final.pdf 4) UNCDF. 2021. Measuring Progress: Financial Inclusion in Selected SADC Countries. https://www.uncdf.org/article/7365/measuring-progress-2021-financial-inclusion-in-selected-sadc-countries 5) Deputy Prime Ministers Office. 2019. The Kingdom of Eswatini's Country Progress Report on the Implementation of the Beijing Declaration and Platform for Action. https://archive.uneca.org/sites/default/files/uploaded-documents/Beijing25/eswatini-beijing25_report.pdf 6) Central Bank of Eswatini. 2021. Eswatini National Payment System Vision and Strategy Document 2021–2025. https://cenfri.org/wp-content/uploads/Eswatini-National-Payment-System-Vision-2025.pdf 7) Government of Eswatini. 2018. Revised Small, Micro and Medium Enterprise Policy of Eswatini
IOA Sources
  • 8) Central Bank of Eswatini. Development Finance. https://www.centralbank.org.sz/development-finance/ 9) United Nations Economic Commission for Africa & the Government of the Kingdom of Eswatini. Financing Model for Micro, Small and Medium-Sized Enterprises. https://www.gov.sz/images/MOCIT/Financing-Model-for-Micro-Small-and-Medium-Sized-Enterprises-MSMEs--Final-Wednesday-23-June-2021.pdf 10) Central Bank of Eswatini. 2021. Financial Stability Report. Issue.5. https://www.centralbank.org.sz/financial-stability-report/ 11) Financial Services Regulatory Authority. March 2018. Annual Report. https://www.fsra.co.sz/about/annualreports/FSRA%20AR%202018.pdf 12) UNDP Stakeholder Consultation with FINCORP. January 2022 13) UNCDF & Finrmark Trust. 2020. Eswatini Financial Inclusion Refresh. https://www.uncdf.org/article/6570/eswatini-financial-inclusion-refresh 14) Finmark Trust. 2017. FinScope Micro, Small and Medium Enterprise Survey Eswatini 2017 Report. https://finmark.org.za/system/documents/files/000/000/214/original/FinScope_MSME_Report_Eswatini_2017.pdf?1601980048 15) Deputy Prime Ministers Office. 2019. The Kingdom of Eswatini's Country Progress Report on the Implementation of the Beijing Declaration and Platform for Action. https://archive.uneca.org/sites/default/files/uploaded-documents/Beijing25/eswatini-beijing25_report.pdf 16) United Nations Department of Economic and Social Affairs. 2020. Micro-, Small and Medium-sized Enterprises (MSMEs) and their role in achieving the Sustainable Development Goals. https://sdgs.un.org/sites/default/files/2020-07/MSMEs_and_SDGs.pdf 17) UNCDF. 2021. Measuring Progress: Financial Inclusion in Selected SADC Countries. https://www.uncdf.org/article/7365/measuring-progress-2021-financial-inclusion-in-selected-sadc-countries 18) Minister of Finance. 2017. National Financial Inclusion Strategy. https://www.afi-global.org/publications/national-financial-inclusion-strategy-for-swaziland-2017-2022/ 19) United Nations Statistics Division. 2020. SDG Indicators Database. https://unstats.un.org/sdgs/UNSDG/countryprofiles/SWZ#goal-9 20) United Nations Eswatini. United Nations Sustainable Development Cooperation Framework (UNSDCF) 2021-2025. https://unsdg.un.org/sites/default/files/2020-11/Eswatini_UNSDCF_2021%20to%202025_1.pdf 21) UNDP & UNCDF. 2020. Eswatini Energy and the Poor Unpacking the Investment Case for Clean Energy. https://www.undp.org/sites/g/files/zskgke326/files/publications/UNDP-UNCDF-eSwatini-Energy-and-the-Poor.pdf 22) Government of the Kingdom of Eswatini Ministry of Commerce. 2018. Revised SME Enterprise Policy of Eswatini. https://en.unesco.org/creativity/sites/creativity/files/qpr/revised_final_final_smme_national_policy_11-05-2018_1_1.pdf 23) Government of the Kingdom of Swaziland. Industrial Development Policy 2015-2022. https://www.gov.sz/images/MOCIT/Industrial-Development-Policy-2015---2022-Swaziland-FINAL-AND-ADOPTED.pdf 24) Eswatini Economic Policy Analysis and Research Center. 2019. Economic Impact Analysis of Credit Guarantee Schemes in Eswatini: A Case of the Small Scale Enterprise Loan Guarantee Scheme (SSELGS). https://media.africaportal.org/documents/Economic-Impact-Analysis-of-Credit-Guarantee-Schemes-in-Eswatini-A-Case-of-the_QyhSyib.pdf 25) Proparco. April 2019. Proparco Carries Out its First Operation in Eswatini. https://www.proparco.fr/en/actualites/proparco-carries-out-its-first-operation-eswatini 26) Ministry of Finance. February 2022. Budget Speech 2022. https://www.gov.sz/images/CabinetMinisters/Budget-Speech-2022---FINAL.pdf