Overview –
Our in-depth assessments have uncovered crucial gaps in Ethiopia’s business landscape, particularly among Small and Medium Enterprises (SMEs) and startups poised for significant growth. These enterprises face not only financial challenges but also operational limitations that hinder their expansion. Often, they rely heavily on traditional models or founder-centric approaches. Furthermore, many potential financiers express reservations about investing in Ethiopian SMEs due to the lack of comprehensive financial histories, financial projections, and governance practices necessary for prudent investment decisions and long-term returns.
To tackle these challenges head-on, the Innovative Finance Lab’s (IFL) Technical Assistance Facility (TAF) is dedicated to preparing SMEs for receiving and adequately managing investment. Our approach combines tailored training programs with expert business advisory support, with a particular focus on guiding companies through both the pre-investment and post-investment phases of their growth journey.
Our pre-investment program is crafted specifically for companies that have yet to secure prior investment or bank financing. Its primary objective is to help these enterprises create a comprehensive data room, gain a clear understanding of their growth plans and financial projections, and foster unwavering conviction in their value proposition.
To facilitate this program, we have formed strategic partnerships with vendors, MDF Global and R&D Group, who have provided support to 70 companies across two cohorts.
The post-investment phase presents its unique challenges, especially for SMEs that have previously secured financing and are now seeking additional funding to scale their operations. Our post investment program is thoughtfully designed to empower these companies further. We guide them in enhancing their understanding of operational efficiency and assist in updating their data room with a comprehensive growth plan. Our program equips these SMEs with the tools and knowledge they need to make the most of their funding and drive sustainable growth.
To date, our partners, MDF Global and R&D Group, have provided support to a total of 30 companies under this program.
Our one-year journey of training and Business Development Services (BDS) support for 100 companies has shed light on a pressing need for additional operational support. To truly become investment-ready, these companies require the right tools and a robust team in place to implement governance structures crucial for fueling growth. However, many of these promising companies grapple with resource constraints, making it challenging to establish these vital structures. That’s where TA+ steps in, offering a lifeline by providing shared talent and co-financing for their tool needs.