Other Investor Projects
Responsible Exits – Collaboration with NpM and Financial Inclusion Equity Council (FIEC)
Activity period: 2017 - 2018
Objectives:
To explore how social investors committed to advancing responsible finance practices should ‘exit responsibly’ from the MFIs in which they have invested over the years. This complex undertaking entails a wide range of considerations, from exit timing to criteria for identification of similar-minded buyers and partners who will be able to safeguard perpetuation of the original mission.
Activity: Research paper led by the Platform for Inclusive Finance (NpM) exploring the concept of “responsible exit”, the aspects of the sale that need to be taken into special consideration and the policies and practices that can ensure continuity and sustainable positive impact of the investment.
Resources:
Caveat Venditor: Towards a Conceptual Framework for Buyer Selection in Responsible Microfinance Exits, prepared by Sam Mendelson & Daniel Rozas in collaboration with NpM, e-MFP Investor Action Group and FIEC, April 2018
Assessment of the Sustainable Performance of SME Finance Services Providers – Collaboration with SPTF Social Investors Working Group and CDC
Activity period: 2017 - 2018
Objectives:
To provide a framework for investors to assess the sustainable performance of SME finance service providers. In order to do so, the project aimed to map the relevance and applicability for SME finance of the USSPM, MIV due diligence tools and other frameworks, identify possible gaps and provide indications on how to fill the gaps.
Activity:
Research study conducted by MFR consolidating the information available on how to evaluate social and environmental performance management (SPM) for FSPs financing SMEs. The research report offers modular options to investors willing to assess the sustainable performance of SME finance institutions. The suggested metrics adapt SPTF’s Universal Standards of Social Performance Management (USSPM) to the different goals, language and needs of SME banks and other SME finance institutions.
Resources:
e-MFP Brief No. 8: Assessment of the Sustainable Performance of SME Finance Service Providers, prepared by Lucia Spaggiari (MFR), in collaboration with the e-MFP Investor Action Group and the Social Performance Task Force (SPTF) Social Investors Working Group, November 2018
Training on Due diligence for MFIs venturing into SME finance, delivered by Elza Herman, the training took place on October 13th, 2017, in Addis Ababa, in the framework of the African Microfinance Week.