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AV Ventures' Investments Catalyze Ghana Poultry Industry

Posted By Heather Bateman, ACDI/VOCA, Tuesday, June 4, 2019

AV Ventures is pleased to announce two new investments in Ghana: G. I. Nyame Aye Awie Ampa Limited (GINAAAL) and Golden Link Savings and Loans Limited. AV Ventures, a subsidiary of ACDI/VOCA, is an impact investor providing mezzanine and revenue-based debt to small and growing businesses (SGBs) in developing countries. AV Ventures promotes markets in which business owners, smallholder farmers, and communities are empowered to succeed in the global economy. 

AV Ventures has partnered with the ongoing USDA-funded Ghana Poultry Project, implemented by ACDI/VOCA, and collaborates closely on pre- and post-investment support, poultry market systems development, and fostering other private and public local partnerships.

New Investments, Expanded Impact

The first of AV Ventures’ new investments is GINAAAL, a commercial poultry farm producing eggs for the Ghanaian market. Urbanization, rising per-capita income, and an increasing population are driving significant increases in the demand for chicken meat and table eggs in Ghana where demand outpaces domestic supply—creating opportunities for local poultry farms to expand and fill this gap. AV Ventures’ investment will allow GINAAAL to increase its capacity by bringing an estimated 7 million more eggs to market annually. The investment is also expected to generate greater economic and social impact through:

-  Increasing employment by an estimated 20 percent
-  Improving incomes of its egg retailer network, over 90 percent of whom are women
-  Providing access to markets for over 900 smallholder soy and maize farmers in Ghana, from whom GINAAAL sources its feed ingredients

Further, AV Ventures’ revenue-based financing helps to pioneer a new approach to SME finance: by sharing risk with the entrepreneur and tying repayments to success of the company’s future sales, while allowing the entrepreneur to retain full ownership.

“AV Ventures sees enormous potential for agriculture sector growth in Ghana, particularly in its growing poultry industry. Given its importance in rural Ghana, there is huge potential to catalyze inclusive growth by investing in this sector,” said Geoffrey Chalmers, Managing Director of AV Ventures LLC. 

Golden Link Savings and Loans, AV Ventures’ second new investment, is licensed by the Bank of Ghana as a specialized deposit-taking institution, offering savings, loans, checking, deposit, mobile banking, and remittance services to its customers – many of whom operate in the informal economy. Golden Link has developed loan products specifically for poultry value chain businesses. AV Ventures’ investment creates an on-lending facility for Golden Link to significantly expand its poultry loan portfolio, thereby improving access to finance to smallholder poultry farmers, informal entrepreneurs, and micro-enterprises in Ghana’s poultry value chain. Providing the financing in local currency allows Golden Link to expand without foreign currency risk.

“[AV Ventures’] support is already acting as a catalyst for our growth to the next level,” stated Dr. Emmanuel Owusu, Managing Director of Golden Link.

More About AV Ventures

As a subsidiary of ACDI/VOCA, AV Ventures leverages ACDI/VOCA’s broad platform of expertise and services, including:

-  A global network of 1,200+ staff implementing market systems development programming in 20+ countries
-  Technical expertise in agriculture, financial services, business growth, gender, youth, and more
-  Strong partnerships with local governments, funders, local communities & customer bases, and other international and local private companies
-  Pre- and post-investment advisory support, drawing from our global networks

AV Ventures and ACDI/VOCA are proud members of the Aspen Network of Development Entrepreneurs (ANDE), Convergence, the INGOs in Impact Investing Network, and the USAID INVEST Network

For more details about AV Ventures or these recent investments, please contact Geoffrey Chalmers, Managing Director for AV Ventures, at gchalmers@av-ventures.com

Tags:  Africa  Agriculture  entrepreneurship  finance  impact investing  impact investment  innovative finance  NGOs  SGBs; small and growing businesses impact investin  smallholder farmers  smes  West Africa 

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Accion invests in CÍVICO to accelerate access to innovative financial services in Latin America

Posted By Lisa Johnson, Accion, Wednesday, April 10, 2019
Updated: Wednesday, April 10, 2019

Bogotá, Colombia, April 3, 2019 — Global nonprofit Accion announced today an investment in Latin American digital platform CÍVICO. The funds will help CÍVICO invest in technology and analytics, expand its merchant network, and develop its suite of financial services.

CÍVICO is a digital platform that enables access to information and services to improve the quality of life of individuals in Latin America. The company provides micro, small, and medium enterprises (MSMEs) in Bogotá, Colombia; Mexico City, Mexico; and Santiago, Chile with a platform to connect with local customers as well as business information and payment services. CÍVICO also provides a strong value proposition to its merchants with electronic payments, e-commerce, business education in digital marketing techniques, coupons and loyalty programs, as well as better bookkeeping techniques. Today, CÍVICO has more than 600,000 registered merchants and helps serve more than 4 million consumers.

“We’re excited to bring on Accion as our newest partner. With its decades of experience supporting financial services innovation in Latin America and around the world, we know Accion’s investment and advisory support will be critical as we scale our services and reach in the region,” said Ricardo Pombo, CEO and Co-founder of CÍVICO.

"Latin American entrepreneurs often lack access to formal financial services and adequate business training. Through its simple, digital platform, CÍVICO is closing this gap and helping small businesses thrive," said Michael Schlein, President and CEO of Accion. “Accion is excited to bring our global expertise to CÍVICO’s experienced management team and help leverage its innovative technology platform to scale financial services in the region,” said Radhika Shroff, Deputy Chief Investment Officer of Accion Global Investments.

As part of its merchant customer acquisition strategy, CÍVICO uses an innovative crowdsourcing model to identify and confirm MSME information, including the business’ names, contact information, hours, and services. This information, along with merchants’ and users’ data, helps CÍVICO learn more about the MSMEs it serves, connect them with local customers, and develop deeper profiles that can be used to better understand community needs and ultimately provide entrepreneurs with tailored financial services. The company also partners with large financial service providers to help entrepreneurs access the electronic payment systems they need to accept credit and debit cards, allowing them to increase sales.

In addition to financial support, Accion is providing advisory services to enable CÍVICO to reach more clients throughout Colombia, Mexico, and Chile. The advisory services will support the company as it further develops its financial services distribution and enables more merchants to access quality digital services.

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About Accion

Accion is a global nonprofit committed to creating a financially inclusive world, with a pioneering legacy in microfinance and fintech impact investing. We catalyze financial service providers to deliver high-quality, affordable solutions at scale for the three billion people who are left out of — or poorly served by — the financial sector. For more than 50 years, Accion has helped tens of millions of people through our work with more than 110 partners in 50 countries. More at http://www.accion.org>.

 

Link to associated blog: https://www.accion.org/how-one-platform-connects-cities-and-boosts-small-businesses/

Tags:  communities  digital economy  emerging markets  financial inclusion  impact investing  innovative finance 

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Pact Ventures Launches Revamped Impact Investment Group

Posted By Katie Hallaran, Pact, Monday, December 10, 2018

Pact is excited to announce the launch of its revamped social investment team – Pact Ventures. Pact Ventures believes that markets and private capital can be incentivized to accelerate Pact’s development programs. We structure innovative financing and market-based mechanisms to magnify Pact’s social impact.

Through technical experience in investment banking, private equity, strategy, and social entrepreneurship, we’re integrating private sector perspectives to create tri-sector solutions for complex development challenges by leveraging public, private, and social capital.

Leading with a clean sheet approach, Pact Ventures accesses a wide spectrum of innovative financial and investment vehicles to finance our projects, deliberately matching outcomes risk with financial return. We leverage our impact investments to shift our relationship from donor-beneficiary to provider-customer. In so doing, we tap into economic forces to create market mechanisms that listen and adapt to the voices of our beneficiaries (now customers) in new, empowering ways through:

Outcomes-based and shared value partnerships:

  • Market-based incentives for responsible and traceable sourcing of minerals and gems
  • Access to bottom of the pyramid (BoP) financial products for community-based savings and loans groups

Direct investments in promising social enterprises:

  • Investment in solar home system manufacturer targeting BoP consumers
  • Joint venture with alternative BoP credit scoring and digital distribution services

Innovative business and delivery models for impact:

  • Distribution of solar home system partners to bring renewable energy to Pact’s beneficiaries
  • Workforce development platform for skills-based training and job placement 

We’d love to explore opportunities to collaborate and invite anyone interested in learning more to reach out to Brian Vo at bvo@pactworld.org.

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Tags:  Access to Finance  energy  health  impact investing  innovative finance  social enterprise  social impact 

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