Production capacity development

Validus Investment Holdings PTE. Ltd – EUR 144,000 Development Contribution

Validus Holdings Pte. Ltd. (“Validus”) operates as a Peer-to-Peer (P2P) lending platform that connects SME borrowers looking to fund their short-term working capital requirements with accredited and institutional investors looking to invest in higher yielding, unsecured loan portfolio. . With this development contribution, we aimed at enabling Validus to incorporate an efficient loan processing system with an agile, customer-centric solution for its SME clients in its operations. This will help to drive financial inclusion and responsible lending in the South-East Asia region.

Chemonics International – EUR 247,955 Technical Assistance

MASSIF engaged Chemonics international consultants in three projects in 2021; First, Chemonics worked to deliver a landscape analysis of the Jordan entrepreneurial ecosystem. Secondly, Chemonics conducted a market study in Burkina Faso, Mali, Benin and Niger. The focus of this study was to help map out and better understand (i) the Nasira target groups (Female, Young, Irregular Migrant entrepreneurs, and COVID-19 affected MSMEs) in the local investment landscape, including their barriers and opportunities to access finance in the target countries; (ii) the financial sector serving the target groups and key financing trends, including financial guarantees and other forms of financing available; (iii) detailed recommendations and potential risks as to the Nasira and MASSIF investment opportunities.
In a third project, Chemonics worked on critically evaluating the potential of Repayable Development Contributions (RDCs) in order to understand how they could be leveraged by DFIs and other impact investors to accelerate progress towards the SDGs.

Alvus ESG Consulting DMCC – EUR 41,475 Technical Assistance and Dolma Consulting LTD.- EUR 54,200 Technical Assistance

FMO has been working in a long term ESG Sector Initiative in Nepal. As part of this, MASSIF engaged with two consultants to advance our work in the energy and financial institution sector. First, we worked with Alvus ESG Consulting to Deliver an ESMS training program for financial institutions and power producers in the country. Secondly, we engaged with Dolma Consulting to work with Banking and Financial Institutions, Corporates, and Development partners in Nepal to prepare their institutions and projects for access to international capital, including environmental, social and governance standards

Bina Artha Ventura and Mitra Bisnis Keluarga – EUR 8,236 Technical Assistance

Bina Artha Ventura (“BAV”) and Mitra Bisnis Keluarga (“MBK”) are both FMO clients active in the non-bank lending companies in Indonesia with a focus on MSMEs. To support these two lenders, MASSIF contributed to the hiring of MSC Global Consulting Pte. Ltd. (MSC) who conducted a comparative analysis of regulatory frameworks for lending companies. These findings can be utilized to inform The Financial Services Authority of Indonesia (OJK) to develop a robust, supportive and actionable regulatory framework for non-bank lending companies in the country with a focus on those that provide working capital loans to microenterprises.

DAI Global LLC – EUR 62,950 Technical Assistance

DAI engaged to deliver a landscape analysis of the Somalia entrepreneurial system in line with MASSIF's ambition to venture further into fragile states. The project sought to analyse the business operating environment, identify key risks as well as existing players in the market and provide recommendations for potential investments.

AdVision Finance – EUR 150,000 Technical Assistance

Digitalisation offers the opportunity for Financial Institutions to improve customer interactions and enhance their operations. From customer service bots to clear and concise procedures, through digitalisation FIs can reach out to a broader range of consumers (financial inclusion), offer better and targeted products that respond to clients’ needs, provide secure and faster transactions, increase their resilience, and improve their compliance to new regulations. With this in mind, we engaged AdVision Finance to support in identifying and assessing the needs of specific FI clients regarding their digital transformation, addressing knowledge opportunities and limitations of current systems, processes as well as strengths and weaknesses in their operations and help to open conversations to provide a better foundation for an effective Digital Strategy

FDH Bank – EUR 24,823 Technical Assistance

FDH is one of the leading banks in Malawi with a wide footprint that offers services to low-income households, SMEs and large corporates. FDH’s mission is to contribute to the growth of the local economy by supporting the MSME sector and driving its digitalization strategy to expand financial inclusion of the unbanked population. MASSIF worked with Frankfurt School of Finance ad Management in a Technical Assistance project to strengthen the bank’s credit risk management capabilities to improve customer assessment and portfolio analytics. As a result, it is expected that, FDH will be enabled to scale up and accelerate its activities in supply chain and trade finance, especially in the agricultural sector in Malawi.

Agora Microfinance Zambia Limited – EUR 10,495 Development Contribution

Agora Microfinance Zambia Limited (AMZ) is an MFI established in 2011 that provides financial services to a predominantly rural clientele through small loans to individual entrepreneurs as well as village groups. MASSIF supported AMZ in a project to perform a Client Protection Principles assessment and outline an action plan. The ultimate goal and ambition for AMZ is to achieve Bronze CPP certification in the coming years

FIN'ELLE, La Finance Pour Elle – EUR 121,704 Development Contribution

Fin’Elle, La Finance Pour Elle, is a young microfinance institution founded in 2007 that is based in Côte d’Ivoire. Fin'Elle's mission is to create added value for women entrepreneurship and participate sustainably in their financial and social emancipation. MASSIF supported this project as it offers the development of sustainable alternatives for inclusive finance and gender-smart solutions for women entrepreneurs through Fin'Elle. It is expected the project will contribute to the identification of good practices in the sector that could be shared with the rest of the Cofina Group and other FMO clients with similar ambitions.

Equity for Tanzania Limited – EUR 20,000 Technical Assistance

Equity for Tanzania Limited (“EFTA”) is a Tanzanian leasing company specialised in serving small and medium enterprises and farmers. The Loans offered typically amount to up to USD 60,000, with no collateral except for the equipment itself. MASSIF engaged a consultant to perform a thorough financial due diligence and loan portfolio review. This assessment will be accompanied by a restructuring proposal, with due consideration of financial sustainability and the social impact objectives of both EFTA and its lenders.

RENEW LLC – EUR 70,000 Technical Assistance

Ethiopia is ripe with opportunity, poised for change and at a pivotal juncture in its history for private sector led growth and economic development. MASSIF engaged with Renew LLC an external consultant to deliver a landscape analysis of the Ethiopia entrepreneurial ecosystem. An outcome of this assessment was that FMO Ventures Program’s Technical Assistance Facility could play a catalytic and pivotal role in shaping and accelerating the formation of Ethiopia’s entrepreneurial ecosystem with a long-term investment horizon in mind.

Making Cents International – EUR 95, 189 Technical Assistance

In line with MASSIF’s investment strategy, MASSIF engaged in a ground-breaking project to support the identification of innovative, cost-effective, and replicable initiatives working to increase low-cost access of financial services to young people. We selected Making Cents International, a consulting firm that works with partner organisations to build capacity to support the people they serve—from the smallholder farmers who feed the planet to the young leaders and entrepreneurs who shape their communities. The result of this study should enable FSPs to design and deliver appropriate financial products and services that benefit young people’s livelihoods and promote their financial inclusion.

The Trustees of Columbia University – EUR 17,600 Technical Assistance

MASSIF contributed towards the tuition fees of a selected group of participants to attend the “Leading Cybersecurity in Your Organization” programme offered by Columbia University Business School. The participants learn how to measure the extent of cyber threats, identify, and shield critical digital assets from cyberthreats, and build leadership expertise to manage these threats either via internal investment or agile outsourcing. The aim of this project is to support the holistic digital transformation of financial institutions in a safe manner and help to decrease risks in digital ecosystems worldwide.

UN Capital Development Fund – EUR 500,271 Partnership Development Contribution

The United Nations Capital Development Fund (“UNCDF”) is the United Nations’ capital investment agency for the world’s Least Developed Countries and has the mandate to provide capital and technical support to ensure that more households and small businesses gain access to financial services that expand opportunities and reduce vulnerabilities. By contributing to the UNCDF, MASSIF supports the acceleration of economic recovery after COVID-19 and promotes economies and societies to be more inclusive and resilient to external shocks by increasing access to finance to MSME’s led by usually underserved groups through data analytics capacity and smart products developed by Financial Service Providers in Asia and Africa.

VisionFund Microfinance Institution – EUR 48,370 Development Contribution

Vision Fund Microfinance Institution has been in operation since 1999 as a regulated and legally registered microfinance service provider in Ethiopia. Since then the Institution has been in business to cater services to its clients in the capital and three regional states namely Oromia, Amhara, and SNNPR. To better serve its clients, VFMFI has been working on the full implementation of its core banking system. Training is seen as critical in this process. MASSIF supported in this project by providing financing geared towards the provision of staff training (Technical & Functional), which will ensure an optimal deployment of the CBS and improve the abilities of staff to cope with change and risk management.

The First Microfinance Bank Afghanistan – EUR 232,662 Development Contribution

The First Microfinance Bank (FMFB-A) is the largest MFI and among the top 3 commercial banks in Afghanistan operating across 80 districts and 14 provinces with 48 outlets serving around 55,000 borrowers and 115,000 depositors. Since August 2021, all banks have been required to undergo a transition from conventional banking to Islamic Principles based banking. MASSIF engaged with two consultancies: Avrio Impact and IFAAS (Islamic Finance Advisory & Assurance Services) to support FMFB-A with the conversion into becoming a fully Islamic banking entity, following the rules of the new government in the country.

The Lebanese Association For Development – EUR 200,000 Development Contribution and EUR 12,140 Technical Assistance

The Lebanese Association for Development, Al Majmoua, is the no. 1 MFI in Lebanon. Al Majmoua’s activities started by providing group loans to women in urban and rural areas. Over time, Al Majmoua developed its product offering by adding individual laons, which is now its core financial product. We supported Al Majmoua with two projects first, we provided an emergency grant to deal with the multiple crisis situation in Lebanon, covering costs of IT licenses, solar power solutions and multipurpose cash assistance for staff to buy basic goods. Secondly MASSIF provided technical assistance funding to identify the best way forward and to provide recommendations on preservering Al Majmoua’s liquid assets.

Cambodia Microfinance Association – EUR 50,000 Development Contribution

Cambodia Microfinance Association (“CMA”) is an NGO and a professional association that aims to ensure the sustainability of the microfinance sector in Cambodia. The purpose of the development contribution was to support the transformation of the Cambodian market and the further develop, update, and disseminate Cambodia Microfinance Association's Lending Guidelines which aim to improve the overall performance of the Cambodian financial market and prevent challenges that could derive into unsustainable growth and client over-indebtedness.

Credit Access Philippines Financing – EUR 14,250 Technical Assistance

Microfinance Philippines Financing Company ("One Puhunan") is a young, transparent and professionally managed MFI that gained sizeable market share in the Philippine microfinance market within nearly three years of existence supported by Credit Access Asia, a solid and well-capitalized group in the Netherlands. With the help of external consultants, MASSIF supported Credit Access Philippines to strengthen the effectiveness of its AML/CTF operations and complying with the AML/CTF guidelines in accordance with international compliance standards.

Global Partnerships – EUR 200,000 Development Contribution

Global Partnerships (GP) is an impact-first investment fund manager dedicated to expanding opportunity for people living in poverty. GP and its affiliated funds have deployed USD 488.3 million in impact investments to a total of 161 social enterprise partners, bringing meaningful impact to an estimated 23.2 million lives in 26 countries. MASSIF provided development contribution to GP with the objective of supporting 21 GP investees with Lean Data. Lean Data is a low-cost impact evaluation methodology based on standardized surveys to get feedback directly from end-clients.

Proximity Finance Microfinance – EUR 89,500 Development Contribution

Proximity Finance Microfinance Company Limited is Myanmar’s first farmer-focused finance institution. With the onset of COVID-19 Proximity has required to move fast to ensure they can establish contactless distribution channels to reach their customers at this critical time in Myanmar. MASSIF supported Proximity with a development contribution, to support the MFI in implementing a mobile money payments system to build the foundations for a fully digitized disbursement and collection process.

Mercon B.V. – EUR 40,055 Development Contribution

Mercon is a Coffee Trader active in Africa, Latin America and Asia. Mercon's has been working towards getting more transparency on its supply chain and becoming an example for other traders. With this development contribution, MASSIF supported Mercon with a supply chain risk analysis for three different sourcing countries focused on E&S risks in the supply chain.

Stichting IDH Sustainable Trade Initiative – EUR 35,500 Technical Assistance

Stichting IDH Sustainable Trade Initiative (“IDH”) is an existing MASSIF investee. IDH has developed a market-based approach to smallholder value chain development and currently works with over 600 companies, financial institutions, producer organisations, and governments in 12 value chains across 40 countries worldwide. With this technical assistance project, MASSIF contributes to the development and update of the fund's ESMS to strengthen the fund's E&S practices.

YCP Solidiance PTE. LTD. – EUR 54,000 Technical Assistance

Following the political coup and the COVID-19 pandemic in Myanmar, MASSIF was looking to provide tailor made support to the existing investees including MFIs and Equity Funds active in the market. We engaged YCP Solidiance to design and implement a needs assessment among these investees.

DOLMA Impact Fund II – EUR 200,000 Development Contribution

Dolma Impact Fund II (“DIF II””) is the follow-on fund of Dolma Impact Fund I, where FMO played an anchor investor role. DIF II has implemented a strategy to provide scarce (growth) capital to small- and medium-sized enterprises (SMEs) in Nepal, in the healthcare, renewable energy, technology, and other sectors with high growth and impact potential. DIF II was established to generate private sector-led growth while creating positive social and environmental impact. The fund is managed by Dolma Fund Management. The CD contribution DIF II accompanies technical assistance facility that will help DIF and its investee companies implement strong E&S practices through focus on corporate governance, E&S advisory and Health and Safety (H&S) advisory.

Energy Access Ventures SAS – EUR 150,000 Development Contribution

Energy Access Ventures is an investment fund focused on providing (off grid) energy access and its benefits to the un(der)served in Sub-Saharan Africa.As part of Energy Access Ventures (EAV) ambition to raise a fund focused on connectivity, EAV aims to activate the digital connectivity ecosystem in Africa and thereby encourage greater private sector engagement. MASSIF contributed to this project with funding being used to contribute to the first phase. The outcome of this first phase entails a) 4-in depth reports on connectivity topics to bring knowledge to the African connectivity ecosystem b) roundtable/webinars and other marketing mediums for key stakeholders in the connectivity space to drive collaboration in the ecosystem c) advisory support for one of its portfolio companies active in the connectivity space to help EAV Fund I scale-up for connectivity.

INFRONTIER Limited – EUR 100,000 Development Contribution

In August 2021 US troops began withdrawing from Afghanistan, which was followed by an insurgency in the country. The ongoing insurgency has caused significant humanitarian and economic hardship which compounds other challenges that make Afghanistan one of the most fragile states in the world. MASSIF provided an emergency grant to set up offices for InFrontier Limited in Uzbekistan and UAE and relocate their team members for business continuity purposes. The grant will enable InFrontier to continue operations, safeguard the local team and support their portfolio companies.

Gazelle Finance Holding Cooperatief – EUR 270,000 Development Contribution