Savia will be the first non-bank financial intermediary to use blended finance and private sector “anchor” structures to deepen access to finance (A2F) for African farmers and SMEs. Current impact lenders and local banks are yet to make a real dent in the lack of access to finance because they chose to ignore a simple fact – most of the credit in the sector is provided by input and equipment providers.
Blended Finance refers to the innovative use of grants and subsides to enable transactions that may not be readily bankable into credit worthy transactions. Two key principles of blended finance principals are that (i) grants are not evergreen, rather provided as temporary relief, and (ii) the governance managing grants is separate from that of the credit committee to avoid conflict of interest.
Tiserin Capital is a novel south-south private equity fund that targets $100+ million in capital commitments to “weave” partnerships between Sub-Saharan African mid-cap companies and companies from Asia and Latin America, two regions that have seen similar socio-economic and urbanization trends to those observed in today’s Sub-Saharan Africa. For example, Indonesia and Philippines saw considerable changes to their business environment once the countries crossed the $2,500 GDP per capita post ‘98-99 Asia crisis. Urbanization has since doubled to close to 50%, and modern food retailing has grown five times to 60% of all food purchases, eclipsing sales from mom and pop shops and wet markets. Modern retailing brought about enormous changes to agricultural supply chains and FMCG sectors and, more importantly, better service and product choices to low income consumers, the largest consumer segments in these countries. Companies from these regions can bring their industrial, logistics, product and marketing know-how uniquely fitting to sub-Saharan Africa’s demographic and urbanizing realities.
Tiserin Capital will prioritize the mobilization of Sub Saharan African institutional investors to the private equity markets.
For more information visit Tiserincapital.com
CVG Capital is a minority shareholder in Kwanji, an e-market place that aggregates brokers and companies across the world to provide an alternative to costly bank FX services through a client friendly and competitive foreign exchange platform. Kwanji was founded by Leslie Onyesoh – an entrepreneur who had faced costly FX service inefficiency for years driving him to create an alternative and William Lorenz who has a wealth of experience in FinTech and a track record of building successful companies. Kwanji will focus in the emerging market; particularly, the growing FX markets of Africa and Asia. German Vegarra sits on the Board of Kwanji.
For more information visit Kwanji.com