INVESTMENT PROPOSAL – Fundraising

Taking from our banking background, we will go straight to point. We would like to present a Project already shared in some conversations and here we take the opportunity to say thank you and congratulate the commentators, whose feedback encouraged this step.

This Investment-Proposal is well rooted in our field activity, particularly when we designed, managed and evaluated Credit Guarantee Fund/ Trust Fund/ Grant Facility/ Revolving Fund in Tunisia, Bosnia, Caribbean (St. Lucia), Romania, Mali, Albania, Netherlands Antilles (Curacao), Malawi, Algeria, Morocco, Ghana and Russia Federation.

The importance of business financing doesn’t need to be reiterated: Bankers/Investors did it for centuries. The proposed JAMBO FUND deal with financing the underserved customers, focusing on the small and medium enterprises, which are the backbone of the countries’ economies. https://ascaniograziosi.net/2017/02/14/jambo-twofold-objective/

JAMBO TWOFOLD OBJECTIVE is to provide financial resources to UNDERSERVED ENTREPRENEURS and assistance to UNDERCAPITALISED LENDERS to achieve common objectives and interest,  both of them being undercapitalised.

However, JAMBO isn’t just financing but much more: it is a new way to approach the market. In particular, we elaborated on both the Basel III Committee Document on Financial Inclusion and the Goal 8 of UN 2030 Agenda: “Promote inclusive and sustainable growth”. It is worthwhile to note that in the wave of digitalization, the proposed approach is of utmost importance because the basic question isn’t to provide people with a smart Mobile phone or WhatsApp but to have people eligible for its use. Under the particular circumstances, the methodology will guide the interventions in the emerging economies with a well-defined algorithm and appropriate market segmentation, as it has been visualised in the Slide – letters c and d -, which explains the methodology behind the Project.

Incidentally, although the FUND specifically refers to the Continent, the Paradigm is viable and valid for the emerging economies and country level as well. In this understanding, if there is a specific request, it can be fitted into the Model.

There are questions we have already provided with an answer like Why a Fund? Why Africa? Which assumptions? Which justifications? Where to start? How much capital to invest? Which is my position? https://www.linkedin.com/post/edit/6275982994779971584

JAMBO aims at being A GATEWAY TO AFRICA’s INCLUSIVE GROWTH, opportunities being available in each one and every country. https://ascaniograziosi.net/2017/06/01/jambo-fund-the-gateway-to-africas-inclusive-growth/

The forty pages of the Project-Document starts from the review of the narrative of Africa’s achievements, from which we detected FUND’s assumptions and justifications along with conclusions highlighting the great opportunities by sustaining the entrepreneurship and in so doing have a positive impact on the communities. 

Summing up ….:

The FUND’s features have been shared with a Group of Professionals https://www.linkedin.com/groups/4682884 and received hundreds of appreciations.

– The Business Model has been designed and confirmed by our field activity.

– Although the FUND’ horizon is the Continent, initially, the focus will be in Nigeria, Ghana, Kenya, Morocco, Tunisia, Cameroon, Tanzania and Algeria, to be confirmed by the Investors.

– The administrative and operational components will be presented as options to validate along with the proposed links with national finance providers, lending & credit policy.

– The Investors Committee will select the Fund Manager along with the place to register the business, – in Africa – where le Office shall be located (soft structure).

– The operations may be advanced by a field survey in the above-selected Countries, but it may be replaced by our contacts in the Continents: we shall have field trips for round-up meetings with the purpose to come back with a significant portfolio.

– The SME/SMI’s market niche has been growing and currently has been estimated at $ 1.5 billion (South-Saharan Regions).

–  The initial investment for grounding the activities should be above US $ half million.

– Besides the ROI, the Investors can benefit from a non-negligible marketing/image return by acting as a development’s actor: https://ascaniograziosi.net/2017/06/01/jambo-fund-the-gateway-to-africas-inclusive-growth/.

– At this stage, we are available to provide truly interested Private Investors, Entities, Funding Agencies, Donors, Finance Providers, Banks with additional information they need.

In this perspective, we look forward to reading from you: graziosiascanio@aol.com .

NEW AVENUES FOR DEVELOPMENT FINANCE (How to take $ 1.5 billion market opportunities)

To our knowledge “JAMBO” is the first RISK FUND designed within the UN 2030 Agenda for SDGs along with the guidelines of Basel III Committee on financial inclusion. Here we would like to explain the reasoning behind its construction.
The line https://www.linkedin.com/feed/update/urn:li:activity:6255675757557874688/ presenting “JAMBO” FUND FOR AFRICA has been clicked hundred times and got tens appreciations. We have to say that the proposed approach goes well above and beyond the purpose as a tool for financing ground activities; indeed the Figure has been elaborated from the methodology rationalizing the model to inclusive growth and for a comprehensive understanding you may go through: https://itunes.apple.com/us/book/id1116912686.
In particular, we utilized the market segmentation as a means to group people belonging to four big segments: a) People in need of basic services, b) People who aim at improving family budget, c) People who aim at start-up business, d) People who aim at growth-up business.

In the first segment, we are in the presence of food aid intervention while in the second one we have income generating activities; in the third and fourth segment the service provider is in presence of enterprise development. We may say that the points a), b) and c), d) refer, respectively, to Unserved and Underserved customers, taking from Basel III Committee’s terminology, which mention customers and not people, meaning that a link with a finance provider is a pre-condition for whatsoever intervention. Under the circumstances, the terminology Unserved people indicate that poverty matters should be addressed with economic policy instruments; accordingly, the terminology underline the difference among lender, developer and philanthropist: this is what we have detected, at least.

In this understanding the achievement of SDGs become a function of the actors’ capability and skill to deal with financial and economic inclusion, which have to be conjugated together, to have the desirable impact; indeed, financial inclusion alone could be a disillusion for the provider, an illusion for the client and a likely financial implosion within the community.

Back to the proposed FUND, we have elaborated on above documents and in particular, endeavoring the meaning of Goal 8 “Promote sustainable inclusive economic growth”, which should inform all development finance interventions: this is a real revolution made by the international financial establishment and it is quite incomprehensible that industry’s insiders haven’t emphasized the concept as it deserved. Prior to the release of above-said documents, the concept of sustainability has been almost neglected and, what’s more, there has been a misapplication of the use of the micro credit, privileging the outreach either horizontal (reach an increasing number of people) or vertical (cheap services) and in so doing ignoring the eligibility criteria.
Taking from the institutional narrative dealing with financial inclusion, the main message we perceived has been to move from CREDIT-BASED ECONOMY to COMMUNITY-BASED ECONOMY, thus re-designing the entire architecture of the approach in favor of poor people and small business as well, and shift the conceptual paradigm of the financial system from over indebted economy at micro and macro level to a real people’s empowerment via jobs creation.

We don’t say that there should be a restoration of the Keynesian theory, we do say that the role of finance in the economy has been dominant at macro and micro level, to detriment of the real economy, on the wrong assumption that poverty is a lender task instead of a government duty.

We simply elaborated from the suggestions and guidelines issued by the international financial establishment (WB, CGAP, etc.) and designed a RISK FUND FOR AFRICA as a business way to empower viable enterprises at both Start-up and Growth-up stage,  on the grounds that there is a market worth $ 1.5 billion and JAMBO FUND has been designed to take these opportunities.
Who does what and how? https://ascaniograziosi.net/2017/02/28/jambo-fund-who-does-what-and-how/