IFC Access to Finance for Women SMEs
IFC Access to Finance for Women SMEs
June 2012
1
Women are a powerful source of growth Across emerging markets, it is estimated that 31 to 38% of SMEs, are owned or ran by women
Women make up to 31-38% of the world’s workforce today, and spend close to $20 Trillion USD as global consumers. This number is expected to go up to $28 trillion by 2014 Women have an excellent repayment rate and save more than men. They will also buy on average 4.5 products versus men who will only buy 2.3
Increased women’s earnings translate directly into better health, nutrition and education for their families
2
Women-owned SMEs in Developing Countries
Number of formal SMEs with 1+ woman owners Millions East Asia Central Asia and Eastern Europe Latin America Sub-Saharan Africa Middle East and North Africa
Proportion of formal SMEs within the region with 1+ woman owners Percent Formal
4.8-5.9
38-47
1.2-1.4
38-46
1.2-1.4
35-42 21-26
0.8-1.0 0.3
South Asia1
0.2
Total
8.4-10.3
12-15 8-9
SOURCE: IFC-McKinsey MSME database; Enterprise Survey; ILO, Human Development Report; team analysis
3
31-38
Women-Owned SMEs collectively face ~ $300 Bn credit gap per annum
Value of formal SMEs with at least one female owner credit gap in emerging markets USD Billions By geography
Latin America East Asia Central Asia & Eastern Europe Middle East & North Africa Sub-Saharan Africa South Asia Total of above
% of total SME credit gap
By size
77-94
Very Small
79-97
61-74 59-73
Small
93-114
45-55 Medium
15-18
85-104
1-2 258-316
Total of above 27-33%
SOURCE: IFC-McKinsey MSME database; Enterprise Survey; team analysis
4
258-316 27-33%
IFC Value Proposition
Investment
IFC Capital
• • • • • • •
Risk Sharing Facilities Credit lines Loans Equity Credit insurance Supply Finance Trade Finance
Advisory Services
IFC Expertise
To Financial Institutions • Strategic planning • Market positioning /segmentation • Product re-positioning • Staff training To Women Entrepreneurs: • Business Planning • Financial Literacy • Demystifying the Bank • Networking and Mentoring Opportunities
5
Access to New Business
Results
For Financial Institutions: • Expand market share into profitable women’s market segment
For Women Entrepreneurs: • Access to Finance • Stronger businesses
Women Access to Finance Results to date
•Total IFC WIN investment: US $118 Mn of which $86 Mn have been disbursed •Total loans disbursed to women entrepreneurs: $86 Mn (Oct 06-Jun 2010) to 3500 women-SME owners •3,500 women-business owners trained •Over 6,100 new deposit accounts opened
Countries with WIN Projects
Bank Partnering with Nigerian Women-owned SMEs
Results: - Over USD $37 million to 550 women entrepreneurs - NPL on women’s portfolio: 1% - Over 1700 new deposit accounts valued at ~$10 million - ROA of 8% - Access Bank offering for women SMEs: - Mpower package - Alternative collateral options (i.e. asset debentures, bill of sales, Gold jewelry) -Targeted financial and business management training -
Recipient of the FT’s Most Sustainable Bank of the Year Award 2011
Member of the Global Banking Alliance for Women
7
Banking women is good business
IFC’s Investment: US $3 million for SMEs - US $1 Million for women entrepreneurs •
As of Dec 2011:
•
2.6 million on-lent to 468 women entrepreneurs
• Portfolio increase from 14% to 39% •
754 new savings and checking accounts to women entrepreneurs
•
NPL: 0.08%
•
Improved brand equity in domestic market
•
Build customer relationship through regular networking meetings and trainings for their female clients
•
NBS partnered with local universities to draw in young female graduates into the entrepreneurship program
The Bank of Choice for Women in Mozambique Results: - Over USD $23.6 million to over 373 women entrepreneurs - NPL on women’s portfolio: less than 1% - Over 1500 new deposit accounts valued at XX million - BCI’s offering for women SMEs: - Mulher Empreendedora credit card with: - Differentiation of the interest tax on the basis of the given guarantees (real estate security - mortgage/distrain of financial applications); -Possibility to parcel out the Balance in Debt, choosing a modality of different payment of 100% (10%, 25%, 50% and 75%); -Targeted financial and business management training -
Roll-out started in other provinces of the Mozambique
Member of the Global Banking Alliance for Women
9
June 2012
1
Women are a powerful source of growth Across emerging markets, it is estimated that 31 to 38% of SMEs, are owned or ran by women
Women make up to 31-38% of the world’s workforce today, and spend close to $20 Trillion USD as global consumers. This number is expected to go up to $28 trillion by 2014 Women have an excellent repayment rate and save more than men. They will also buy on average 4.5 products versus men who will only buy 2.3
Increased women’s earnings translate directly into better health, nutrition and education for their families
2
Women-owned SMEs in Developing Countries
Number of formal SMEs with 1+ woman owners Millions East Asia Central Asia and Eastern Europe Latin America Sub-Saharan Africa Middle East and North Africa
Proportion of formal SMEs within the region with 1+ woman owners Percent Formal
4.8-5.9
38-47
1.2-1.4
38-46
1.2-1.4
35-42 21-26
0.8-1.0 0.3
South Asia1
0.2
Total
8.4-10.3
12-15 8-9
SOURCE: IFC-McKinsey MSME database; Enterprise Survey; ILO, Human Development Report; team analysis
3
31-38
Women-Owned SMEs collectively face ~ $300 Bn credit gap per annum
Value of formal SMEs with at least one female owner credit gap in emerging markets USD Billions By geography
Latin America East Asia Central Asia & Eastern Europe Middle East & North Africa Sub-Saharan Africa South Asia Total of above
% of total SME credit gap
By size
77-94
Very Small
79-97
61-74 59-73
Small
93-114
45-55 Medium
15-18
85-104
1-2 258-316
Total of above 27-33%
SOURCE: IFC-McKinsey MSME database; Enterprise Survey; team analysis
4
258-316 27-33%
IFC Value Proposition
Investment
IFC Capital
• • • • • • •
Risk Sharing Facilities Credit lines Loans Equity Credit insurance Supply Finance Trade Finance
Advisory Services
IFC Expertise
To Financial Institutions • Strategic planning • Market positioning /segmentation • Product re-positioning • Staff training To Women Entrepreneurs: • Business Planning • Financial Literacy • Demystifying the Bank • Networking and Mentoring Opportunities
5
Access to New Business
Results
For Financial Institutions: • Expand market share into profitable women’s market segment
For Women Entrepreneurs: • Access to Finance • Stronger businesses
Women Access to Finance Results to date
•Total IFC WIN investment: US $118 Mn of which $86 Mn have been disbursed •Total loans disbursed to women entrepreneurs: $86 Mn (Oct 06-Jun 2010) to 3500 women-SME owners •3,500 women-business owners trained •Over 6,100 new deposit accounts opened
Countries with WIN Projects
Bank Partnering with Nigerian Women-owned SMEs
Results: - Over USD $37 million to 550 women entrepreneurs - NPL on women’s portfolio: 1% - Over 1700 new deposit accounts valued at ~$10 million - ROA of 8% - Access Bank offering for women SMEs: - Mpower package - Alternative collateral options (i.e. asset debentures, bill of sales, Gold jewelry) -Targeted financial and business management training -
Recipient of the FT’s Most Sustainable Bank of the Year Award 2011
Member of the Global Banking Alliance for Women
7
Banking women is good business
IFC’s Investment: US $3 million for SMEs - US $1 Million for women entrepreneurs •
As of Dec 2011:
•
2.6 million on-lent to 468 women entrepreneurs
• Portfolio increase from 14% to 39% •
754 new savings and checking accounts to women entrepreneurs
•
NPL: 0.08%
•
Improved brand equity in domestic market
•
Build customer relationship through regular networking meetings and trainings for their female clients
•
NBS partnered with local universities to draw in young female graduates into the entrepreneurship program
The Bank of Choice for Women in Mozambique Results: - Over USD $23.6 million to over 373 women entrepreneurs - NPL on women’s portfolio: less than 1% - Over 1500 new deposit accounts valued at XX million - BCI’s offering for women SMEs: - Mulher Empreendedora credit card with: - Differentiation of the interest tax on the basis of the given guarantees (real estate security - mortgage/distrain of financial applications); -Possibility to parcel out the Balance in Debt, choosing a modality of different payment of 100% (10%, 25%, 50% and 75%); -Targeted financial and business management training -
Roll-out started in other provinces of the Mozambique
Member of the Global Banking Alliance for Women
9
