Client
Association of Banks and Financial Institutions of Burundi (ABEF)
Amount
EUR 105,123
Start Date
1 February 2013
End Date
31 July 2013
Donor
Association of Banks and Financial Institutions of Burundi (ABEF)
Country and Region
Burundi
East Africa
Description
Between February and July 2013, Belgian Bankers Academy conducted a comprehensive study for ABEF to design an Economic Development, Guarantee and Business Support Fund, FIGA, adapted to the Burundian context.
The project covered:
Data collection and analysis: assessment of the SME sector, including the number of enterprises, sectors, location, investment needs and working capital requirements
Assessment of financing needs: analysis of average amounts, maturities and grace periods, with a focus on agriculture and the agri-food sector.
Mapping of existing stakeholders: identification of support structures and potential synergies.
Cooperation model: definition of the roles of the intermediaries involved and the proposed support arrangements.
Design of financial products: development of co-financing and guarantee structures, together with a product policy involving local banks.
Institutional framework: proposal of a governance and organisational model for managing FIGA.
Capitalisation assumptions: simulation of the portfolio at risk and estimation of equity requirements.
Business models and SWOT analysis: preparation of business plans, organisational models and profitability analyses.
Management and control standards: development of governance standards, monitoring procedures and reporting arrangements
Impact assessment: projections of the fund’s economic and social effects on SME development.
Stakeholder consultation: workshops with donors and public and private institutions to validate synergies and contributions.
At the end of the study, ABEF had a FIGA Burundi model ready for capitalisation, guarantee arrangements and implementation, with the objective of supporting hundreds of SMEs in accessing finance.
BBA’s Role
Collection and processing of socio-economic data on the SME sector
Analysis of financing needs and development of investment scenarios
Mapping of microfinance stakeholders and proposal of cooperation models
Design of co-financing and guarantee products in partnership with local banks
Proposal of an institutional organisation model for managing FIGA
Capitalisation simulations and portfolio-at-risk modelling
Preparation of standard business plans, SWOT analyses and profitability studies
Definition of governance, internal control and reporting standards
Assessment of the fund’s expected economic and social impacts
Facilitation of consultation workshops with donors, regulators and partners
Preparation of the final feasibility report and delivery of the main project outputs