Friday, August 3, 2007

Meso Finance: the next area of financing for SME's in Africa

There's been a lot of talk on micro-finance and it's impact with the base of pyramid market (BOP). Dr. Muhammad Yunus's non-profit Grameen bank was the first to commercialize micro-finance in Bangladesh, now everyone from Latin America, India and Africa are copying this model. Micro-finance works well and helps the improvished and especially women sustain a living.

However, there is a flaw is micro-finance. Micro-finance as the name suggest, is about utilizing small amounts of financing usually $50 to $500 or start a small business. But what if your a farmer in rural Mali, Sudan, Zambia, or Kenya who has hundreds of plots of land and you need heavy machinery to till, or sow your land? Where do you get financing to purchase a Kubota, John Deere, or Caterpillar equipment? Micro-financing is simply not the solution in this case, farming equipment on average costs about $30,000 to $500,000.

The type of financing needed in most developing markets is in the small medium enterprise space (SME), another name for this type of financing is called Meso-Financing. Meso finance is above micro-finance and below traditional finance like; bank loans, and venture capital. Meso means middle and most aspiring SME's fall into this category. There is now a small movement under foot to harvest funds to finance and help the SME market.

I belong to the DC chapter of International Private Enterprise Group (IPEG), and we had our monthly event Aug 2 at the World Resource Institute (WRI) about meso financing. Ricardo Teran and Ben Powell spoke about how their non-profit Agora Partnerships helps entreprenuers in Latin America with Meso-financing. They are so successful that entrepreneurs are making money, hiring more workers and changing the mind-set of doing business in Latin America.

I myself, am involved with starting a Meso finance fund for Africa. In the next few months I will give you an update on what the fund will be doing and who I'm working with in establishing this fund.


  1. In South Africa government interventions are focused predominantly on the survivalist entrepreneur, and hence are great at providing micro finance. But there are entrepreneurs who operate at a higher level, but who do not have the assets to satisfy the bank in order to get traditional bank finance. There is a massive gap here. We would be very intersted in this new opportunity here in South Africa.
    Rob Smorfitt

  2. good luck with Africa Fund and keep the updates coming in. let me knwo if you need some ground reports from these sides

  3. Nii:

    This news should be very welcome to Africa's mid size entrepreneurs. I am anxious for the official announcement.

  4. Dear Friend,

    I have seen a very good website and found the recomendation is very fruitful its a fourm on which i can discuss stock and commodities sector.

    Sign Up today at

  5. You need us if you have any of these tax problems: Back
    , Unfiled Returns, Missing Records, Threat of Levy, or, if you need an Installment Agreement or an Offer in Compromise A tax levy or garnishment or attachment are all the same thing. The terms may be used interchangeably. A wage garnishment or levy may be against any asset. In the enforcement of tax collections. We prepare all Federal and State Unfiled tax Returns The Fair Tax Act (HR
    25/S 1025) is a bill in the United States Congress for changing Tax Solutions laws to replace the Internal Revenue Service (IRS) and all federal income taxes (including Alternative Minimum Tax), Past due tax returns, Past due tax returns, Past due returns, Past due taxes, Unpaid tax, Tax negotiation, Wage levy, Robert M. Adams, Bob Adams, Try to Be Happy, Search Engine Optimization

  6. black mold exposureblack mold symptoms of exposurewrought iron garden gatesiron garden gates find them herefine thin hair hairstylessearch hair styles for fine thin hairnight vision binocularsbuy night vision binocularslipitor reactionslipitor allergic reactionsluxury beach resort in the philippines

    afordable beach resorts in the philippineshomeopathy for big with great mineral makeup bargainsmineral makeup wholesalersprodam iphone Apple prodam iphone prahacect iphone manualmanual for P 168 iphonefero 52 binocularsnight vision Fero 52 binocularsThe best night vision binoculars here

    night vision binoculars bargainsfree photo albums computer programsfree software to make photo albumsfree tax formsprintable tax forms for free craftmatic air bedcraftmatic air bed adjustable info hereboyd air bedboyd night air bed lowest pricefind air beds in wisconsinbest air beds in wisconsincloud air beds

    best cloud inflatable air bedssealy air beds portableportables air bedsrv luggage racksaluminum made rv luggage racksair bed raisedbest form raised air bedsaircraft support equipmentsbest support equipments for aircraftsbed air informercialsbest informercials bed airmattress sized air beds

    bestair bed mattress antique doorknobsantique doorknob identification tipsdvd player troubleshootingtroubleshooting with the dvd playerflat panel television lcd vs plasmaflat panel lcd television versus plasma pic the bestThe causes of economic recessionwhat are the causes of economic recessionadjustable bed air foam The best bed air foam

    hoof prints antique equestrian printsantique hoof prints equestrian printsBuy air bedadjustablebuy the best adjustable air bedsair beds canadian storesCanadian stores for air beds

    migraine causemigraine treatments floridaflorida headache clinicdrying dessicantair drying dessicantdessicant air dryerpediatric asthmaasthma specialistasthma children specialistcarpet cleaning dallas txcarpet cleaners dallascarpet cleaning dallas

    vero beach vacationvero beach vacationsbeach vacation homes veroms beach vacationsms beach vacationms beach condosmaui beach vacationmaui beach vacationsmaui beach clubbeach vacationsyour beach vacationscheap beach vacations

    bob hairstylebob haircutsbob layeredpob hairstylebobbedclassic bobCare for Curly HairTips for Curly Haircurly hair12r 22.5 best pricetires truck bustires 12r 22.5

    washington new housenew house houstonnew house san antonionew house venturanew houston house houston house txstains removal dyestains removal clothesstains removalteeth whiteningteeth whiteningbright teeth


You are welcomed to leave a message!

Related Posts Plugin for WordPress, Blogger...