Microfinance for the Unbanked and MSMEs

Djibouti,Republic of Djibouti - February 3,2013: Locals on a street in downtown Djibouti.

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Microfinance for the Unbanked and MSMEs
Microfinance for the Unbanked and MSMEs
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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

Deliver microfinancing products for Djibouti's unbanked population and offer financing options suitable to Micro, Small and Medium Enterprises (MSMEs) by using technology and alternative information, such as digital footprints and behavioral and psychometric analysis to support credit scoring.

Expected Impact

Enhance productivity and economic resilience of MSMEs.

How is this information gathered?
Updated: 12 Nov, 2021 Date of Production: 11 Nov, 2021
Djibouti
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).
ROE of > 25%
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.
Medium Term (5–10 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.
< USD 50 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
No Poverty (SDG 1) Decent Work and Economic Growth (SDG 8) Industry, Innovation and Infrastructure (SDG 9)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Zero Hunger (SDG 2) Reduced Inequalities (SDG 10)

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Sector Sources
  • 1) Oxford Business Group. 2016. Growing participation in Djibouti's financial services sector due to greater competition. https://oxfordbusinessgroup.com/analysis/lending-opportunities-increased-competition-leads-increased-participation. 2) World Bank. 2020. Doing Business Indicator. https://www.doingbusiness.org/en/data/exploreeconomies/djibouti. 3) World Bank. March 2021. Djibouti - MSME Finance Needs Assessment and Policy Recommendations. https://documents1.worldbank.org/curated/en/289941616568791338/pdf/Djibouti-MSME-Finance-Needs-Assessment-and-Policy-Recommendations.pdf. 4) International Monetary Fund (IMF). October 2018. Technical Assistance Report - Financial Soundness Indicators Mission. https://www.imf.org/external/pubs/ft/scr/2016/cr16249.pdf. 5) World Bank. March 2021. Djibouti - MSME Finance Needs Assessment and Policy Recommendations. 6) Horn of Africa Initiative. 2020. Key Priority Projects to Deepen Regional Integration. https://hoainitiative.org/wp-content/uploads/2020/11/HoA-Initiative-KEY-PRIORITY-PILLARS-Brochure_FINAL.pdf. 7) Republic of Djibouti. 2014. Vision Djibouti 2035. http://ccd.dj/w2017/wp-content/uploads/2016/01/Vision-Nationale.pdf. 8) World Bank. March 2021. Djibouti - MSME Finance Needs Assessment and Policy Recommendations.
IOA Sources
  • 9) LenddoEFL. 2021. Scoring. https://lenddoefl.com/scoring. 10) World Bank. June 2018. Support for Entrepreneurs in Djibouti to Benefit 6,000 Women and Youth. https://documents1.worldbank.org/curated/en/578131520537155799/pdf/Concept-Project-Information-Document-Integrated-Safeguards-Data-Sheet.pdf. 11) Mohamed Abdallah Ali & Mazhar Mughal. 2019. Microfinance and Poverty Reduction: Evidence from Djibouti. https://hal-univ-pau.archives-ouvertes.fr/hal-02282359/document. 12) World Bank. March 2021. Djibouti - MSME Finance Needs Assessment and Policy Recommendations. 13) World Bank. May 2018. International Development Association Project Appraisal Document On A Proposed Credit In The Amount Of Sdr 10.5 Million (US$15 Million Equivalent) To The Republic Of Djibouti For A Support For Women And Youth Entrepreneurship Project. https://documents1.worldbank.org/curated/en/462471527192967678/pdf/DJIBOUTI-PAD-05212018.pdf. 14) Djibouti Department of Statistics and Demographic Studies (DISED). 2016. Situation de l’emploi à Djibouti en 2015. 15) UN Global SDG Database, 2021. SDG Indicators. https://unstats.un.org/sdgs/indicators/database. 16) Sustainable Development Report. 2021. Country Profiles: Djibouti. https://dashboards.sdgindex.org/profiles/djibouti. 17) Government of Djibouti. 2015. Strategie de Croissance Accélérée et de Promotion de l'Emploi. https://economie.gouv.dj/wp-content/uploads/de95d383afef8bcbe0a3bc609a7f5c76.pdf. 18) Government of Djibouti. 2012. Strategie Nationale de Microfinance 2012-2016. https://www.adds.dj/wp-content/uploads/2013/06/DOCUMENT-DE-SNMF-VERSION-FINALE.pdf. 19) Republic of Djibouti. 2014. Vision Djibouti 2035. http://ccd.dj/w2017/wp-content/uploads/2016/01/Vision-Nationale.pdf. 20) Central Bank of Djibouti. February 2016. Atelier sur l'élaboration d'une stratégie pour l'amélioration de l'inclusion financière dans la Région du COMESA Présentation Pays: Djibouti. https://cmi.comesa.int/wp-content/uploads/2016/03/Djibouti_Regulator-1.pdf. 21) World Bank. April 2018. Djibouti Support for Women and Youth Entrepreneurship – Combined Project Information Documents. http://documents1.worldbank.org/curated/en/654131524315527206/pdf/Project-Information-Document-Integrated-Safeguards-Data-Sheet-Djibouti-Support-for-Women-and-Youth-Entrepreneurship-P165558.pdf. 22) World Bank. March 2016. Innovative MSME Finance shows promise in Djibouti. https://www.worldbank.org/en/news/feature/2016/03/22/innovative-msme-finance-shows-promise-in-djibouti. 23) Adaptation Fund. 2020. Project Proposal to the Adaptation Fund Integrated Water and Soil Resources Management Project. https://pubdocs.worldbank.org/en/200001613671982816/14538-2021-02-17-AF-Djibouti-PROGIRES-signed.pdf. 24) Mohamed Abdallah Ali, Mazhar Mughal. 2019. Microfinance and Poverty Reduction: Evidence from Djibouti. https://hal-univ-pau.archives-ouvertes.fr/hal-02282359/document. 25) Abdoulkader Warsama Afasseh. 2012. La microfinance et lutte contre la pauvreté: le case de Djibouti. https://www.memoireonline.com/09/13/7367/m_La-microfinance-et-lutte-contre-la-pauvrete-le-cas-de-Djibouti15.html. 26) Regional MSME Investment Fund for Sub-Saharan Africa (REGMIFA). 2021. Quarterly Factsheet. https://regmifa.com/wp-content/uploads/2021/08/Factsheet_Q1_2021_V01.pdf. 27) Africa Private Equity and Venture Capital Association. July 2021. FMO Invests US$10mn in the Regional MSME Investment Fund for Sub-Saharan Africa. https://www.avca-africa.org/newsroom/member-news/2021/fmo-invests-us-10mn-in-the-regional-msme-investment-fund-for-sub-saharan-africa-regmifa. 28) Oxford Business Group. 2016. Growing participation in Djibouti's financial services sector due to greater competition.