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Accessible financing for the family agricultural sector and 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 accessible financing for the family agricultural sector and MSMEs through:> Conventional loans from traditional or second-tier banks, as well as other financial institutions> Fintech solutions, using for example B2C formulas (Business to consumer, companies that offer services or products to customers), where credits are awarded using mobile phones or online services, such as digital credit services, or P2P models (peer to peer, direct marketing between bidders and demanders on a platform), or other types of models
Expected Impact
Increase financing alternatives to improve agricultural outputs, reduce poverty and ensure food security
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).
10% - 15% (in IRR)
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.
30% MSMEs are formalized (263,106)
Direct ImpactDescribes the primary SDG(s) the IOA addresses.



Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.


