Investment Readiness

As microfinance institutions seek to gain scale and extend outreach, an increasing number of them require access to broader, commercial sources of funding. These MFIs may have some experience in accessing the capital markets, but struggle with transitioning from donor to commercial capital, and with navigating the inherent challenges. Issues include how best for MFIs to represent themselves before prospective investors, manage investor relations, build back office capacity to manage liability, and evaluate, structure and close financings (debt or equity) that are appropriate to funding needs and business goals. This process raises key questions – how can industry advisors and collaborators support the evolving funding needs of MFIs and build their capacity to secure and manage commercial funding? How best can we develop and disseminate high-quality tools and training throughout the microfinance industry to meet the needs identified above?

The Center's Investment Readiness project focuses on building the capacity of NGOs to secure and properly manage debt and equity investment, disseminate best practices for the industry and provide industry leadership.

 

Project Updates

Identifying the Strategy for Investment Readiness

The Investing in Inclusive Finance team met with Bill Harrington, co-facilitator with Deborah of the SEEP Investment Readiness Working Group, as well as a handful of ACCION Global Programs colleagues in early April for a day-long meeting to discuss investment readiness. The team laid out the CFI’s strategy for investment readiness, including potential trainings in Africa, India, and the Balkans, roundtable discussions with networks, and the production of training materials.

Posted by Kelley Mesa