The FINTECH Technical Services Facility is the AfriCap adjoined grant facility that provides funding for technical assistance programs that build capacity in portfolio companies and support industry development. The TSF is an integral part of AfriCap's investment approach.
At an industry level TSF resources are employed to pursue AfriCap's broader market development goals with a focus on issues with particular relevance in countries where the Fund has made an investment. AfriCap will also consider selective and focused TSF interventions in areas where a lack of information and knowledge might constrain the growth of the microfinance sector more generally.
Some channels through which TSF supports industry development include:
The TSF also assists investee institutions to overcome challenges related to insufficient capacity. Companies could address these gaps using internal resources but are reluctant because of financial constraints. As such these gaps exist for extended periods of time, limiting the capability of the companies to scale up their services to their clients. The TSF interventions are aimed at closing these gaps, so accelerating the growth of portfolio companies.
Through providing a range of instruments and resources to support the establishment, development and growth of well-managed and well-governed institutions, value is created for low-income and vulnerable populations. These include:
Without the TSF funding AfriCap would not be able to have the same level of impact on the African Microfinance industry. MFIs and the industry as a whole would develop more slowly, new markets and channels would be ignored and ultimately the extent of poverty alleviation would be reduced. The TSF demonstrates value through giving investors confidence in proposed investments and is an absolutely essential component of the AfriCap strategy and social mission.
The TSF initiated a HIV/AIDS Risk Management Working Group in order to bring forth all the talent, know-how, energy, influence and resources required to generate solutions and industry guidelines for managing HIV/AIDS risks. The Working Group set out to develop risk management strategies concerning HIV/AIDS for the microfinance industry, specifically for HIV/AIDS affected MFI clients and employees, including ways to ensure that they are not discriminated against as far as access to credit is concerned. For details on the guidebook developed through this process visithttp://www.microfinancerisk.org/To download a copy of the guidebook, click here.To order a hardcopy of the guidebook, click here.
Over the years of investing AfriCap identified a common need for better strategic planning by investee companies. To meet this need the TSF funded the development of a proprietary strategy toolkit, the Strategic Value Management Framework (SVMF). The SVMF program aims to institute strategy as a core business process by empowering the management with the tools and processes for strategic and value-based decision-making.
