NATIONAL INVESTORS SETTING UP A COUNTRY DEVELOPMENT SCHEME

Continuing our conversation “Vers le développement inclusive de l’Afrique https://www.linkedin.com/pulse/vers-le-developpement-inclusif-de-lafrique-ascanio-graziosi/,

there is another avenue to take, if and when African Capitalists agree that something should be done, unless they decide to keep going the status quo.

FINANCE BOUTIQUE has worked out a Model of intervention, to mitigate the poverty via jobs creation and providing opportunities for people’s better living conditions and business prosperity.

The Model aims at promoting growth via business approach, which vision has been inspired by the UN 2030 Agenda for SDGs, in particular the Objective 1 (end Poverty in all its forms) and Objective 8 (Promote inclusive and sustainable growth). The Model has been proposed in 2018 (6) and then justified by forty pages of a Feasibility Study, ready to be converted into a Project.

Here our approach:

Firstly, we have reviewed the narrative on development finance issues focusing on Africa, which has made, again, the headlines as a Continent of opportunities, which have been estimated at billion $ 1.5. (5)

Secondly, we have taken into account our background in terms of field experience: we do have collaborated in some sixteen African Countries out of twenty-six world-wide.

Thirdly, we have checked our expertise on the matter: we have designed, managed and evaluated FUNDS in the following Countries: Tunisia, Bosnia, Caribbean, Romania, Mali, Albania, Netherlands Antilles, Malawi, Algeria, Morocco Ghana and Russia Federation.

Fourthly, we have tested the viability and validity of the proposal in the field. Although the Project’s horizon is the Continent, it doesn’t mean to cover 54 Countries, opportunities being available everywhere; initially, the activities shall focus on some selected countries. (6)

Fifthly, we supported the Proposal with a methodology: The Project should be seen in the picture of the Community-based economy as a new approach replacing Credit-based economy (7). Accordingly, we have elaborated a conceptual framework which has been the reference in point to design the Model to promote growth via business approach. The connected market segmentation deserves a detailed investigation of the landscape to understand which kind of service/product may be delivered and makes also the difference between lender, developer and philanthropists.

Who? Why? How? Where?

  • A) JAMBO (Swahili salutations) isn’t a fund as usual. To our knowledge it is the first RISK FUND designed within the UN 2030 Agenda for SDGs along with the guidelines of Basel III Committee on financial inclusion: (Fund vision: Objectives 1 and 8 of SDGs).
  • B) JAMBO isn’t just financing but much more: it does match-up traditional and innovative approach to the market and the proposed market segmentation will be of utmost importance for both finance and the digital providers. It has a twofold objective: to provide financial resources to UNDERSERVED ENTREPRENEURS and assistance to UNDERCAPITALISED LENDERS, both facing the following three big challenges: UNDERCAPITALISATION, DIGITALISATION and MANAGEMENT. The linkages between FUND and national financial providers (MFI, Banks, Finance Agencies, etc.) shall be worked out country by country, in accordance with the related market situations; if this way isn’t viable or feasible, the FUND will directly link with the Entrepreneurs;
  • C) The Model is viable and valid at both regional and country level and in this understanding, a specific request can be fitted into it;
  • D) The FUND shall have a positive impact on the financial market by lowering the high cost of borrowing;
  • E) Based on the current lending activities in the Continent, the FUND can secure, at least, an ROI above 3%; besides, there is a significant image Return for Investors acting as a development’s actors;
  • F) Although the Project’s horizon is the Continent, it doesn’t mean to cover 54 Countries, opportunities being available everywhere. We have planned to achieve round-up meetings in 3-4 countries and come back with an important portfolio. It is worthwhile to note that some entrepreneurs have already anticipated requests for financial assistance: Ghana (cotton), Cote d’Ivoire (cocoa beans), Benin (port) Nigeria (recycling), Tanzania (enterprise expansion), Algeria (Construction).
  • G) We have worked out a tentative timetable, which should be discussed with the Founders: 1) a field survey in some selected countries, 2) round-up meeting with our high-level contacts in some countries. In case, the field survey could be completed soon after FUND inception.
  • H) The requested seed capital along with the African Country where to register the Fund shall be discussed with a restricted Group Founders: Investment Companies, Firms, Private Investors, Donors, Financial Institutions.

The Fund will make it the history of promoting African Countries’ inclusive growth. Truly interested Investors may have more information: graziosiascanio@aol.com and via Skype.

FINANCIAL INCLUSION- Give people a job not a loan

Dr. A. Graziosi has carried out an unusual analysis on the current financial inclusion approach and achieved innovative conclusions, combining both desk work and lessons learned while managing and evaluating development projects over the past three decades.

The Author has developed his ideas drawing on the recommendations emerging from G-20, 2015-Post Evaluation Analysis, Rio+20 meetings and the recent launch of Sustainable Development Goals. Within this background information he has worked out a proposal within the picture of a comprehensive, genuine and structured framework, having as a reference the Consultative Document on microfinance activities released within Basel III in 2010 and then updated in 2015, all of which has inspired his work.

According to the Author, to understand the current approach to financial inclusion a preliminary step is to look into the microfinance trend, which is the main vehicle to expand financial products in favour of poor people.

He claims that, over the years, microfinance activities have disclosed situations that have been in contradiction with the fundamentals of fair contractual terms, along with inappropriate assumptions and inconsistency of the methodological approach.

Starting from this point, the Author has elaborated on Basel III document to restore a correct decision making pro- cess and, in so doing, reinstate the truthful significance of credit, which means confidence. He said that sustainable microfinance is the best way to create durable jobs and eradicate poverty.

On financial inclusion he has a pioneering position and has raised a word of caution on what he has called the easy way to digitalization of micro financial services; what is more, he claims that financial inclusion without economic inclusion could be a disillusion for the lender, an illusion for the client and a likely implosion for the community.

In this context, Dr. Graziosi provides an attractive approach, which is well synthesized in the book sub-title “Give people a job not a loan”. With this declaration the Author has almost phased out the financial way to development and replaced it with the EMPLOYMENT-BASED WAY TO DEVELOPMENT, thus re-designing the entire architecture of the approach in favor of poor people.

He has investigated into the position of microfinance as a circuit of the global finance and therefore its trend to re- produce the ups and downs of the financial capitalism trend and its inadequacy to foster the emerging economies as well.

In addition, he has completed his viewpoint by investigating the contractual conditions of experts, consultants and practitioners working overseas with donor-funded program. On this matter, he has concluded that Practitioners/ Experts/Developers employment status has implications for the quality of the outcome. https://www.amazon.com/Financial-Inclusion-Give-people-loan-ebook/dp/B01ENJP37S/ref=sr_1_2?ie=UTF8&qid=1465837424&sr=8-2&keywords=financial+inclusion#nav-subnav

 

 

 

 

JAMBO FUND TWOFOLD OBJECTIVE

JAMBO FUND aims at  providing assistance and money for Start-up and Growth Business, the former without the latter being inconsistent. It will do it by assisting (parallel objective) MFI to achieving a performing position in the market, in the projection that the sector has been facing the following three big challenges: 

UNDERCAPITALISATION (inadequate capital), DIGITALISATION ( new products) and MANAGEMENT (new style of management), which ask for money and assistance.

In this model MFI, Retail Banks, Rural banks, Cooperative Banks, etc shall work as a driving belt, their role and responsibility to be discussed with the Investor.

What’s more, the FUND has been designed in the picture of SDGs Objective, implementation will show what the real meaning of FINANCIAL INCLUSION, besides WhatsApp, namely jobs’ creation and provision of opportunities focusing on the real economy in a financialising world.

MICROFINANCE & POVERTY – Give people a job not aloan

Dr. A. Graziosi has carried out an unusual analysis on microfinance trend and achieved sharp conclusions, combining both deskwork and lessons learned managing and evaluating development projects ialong with the publicist’s activities.

The Author has developed a reasoning taking from the recommendations emerging from G-20, 2015-Post Evaluation Analysis, Rio+20 meetings and the launch of Sustainable Development Program. Within this background information he has worked out a proposal within the picture of a comprehensive, genuine and structured framework, having as a reference the Consultative Document on microfinance activities released within Basel III in 2010, which has inspired the Paper.

Before talking on the position and role of microfinance in the financial market, the Author has tried to provide an intriguing answer to the following questions:

  • Microfinance has been proposed as a new idea, but it wasn’t new at all. Why?
  • When, how and why has microfinance been recommended as a tool to fight poverty?

Both inconsistencies and discontents have emerged in the implementation of microfinance activities, which deteriorated the concept of credit.

According to the Author, over the years microfinance activities disclosed situations that have been in contradiction with the fundamentals of fair contractual terms, along with inappropriate assumptions and inconsistency of the methodological approach.

Starting from this point, the Author has elaborated on above Basel’s document to restore a correct decision making process and in so doing reinstate the truthful significance of credit, which means confidence. He said that sustainable microfinance is the best way to create durable jobs and eradicate poverty.

Besides looking into above factors, he has investigated on the position of microfinance in the context of the global finance, where the former is a circuit of the latter and therefore its trend shall reproduce the ups and downs of the financial capitalism trend.

The Author has concluded the reasoning inviting industry’s insiders to join the debate with contributions in a way to have an outcome where each one and everybody could provide his own idea and direct experience. In this understanding the paper could be a vehicle to gather in one vision different experiences and expertise.

https://independent.academia.edu/AscanioGraziosi/Papers