Result 3

MSME Acces to Finance

MED MSMEs Programme approach

The financial sector is undergoing profound transformation worldwide under the pressure of the emerging innovative finance solutions, and notably e-based financial services and financing that are not relying on physical infrastructure. This tends to reduce

the costs of transactions and opens the door to an increase of the outreach towards underserved market segments at marginal costs. MSMEs will benefit from these new trends provided that innovative financial tools are supported and promoted.

This year, the Programme will facilitate the intermediation between Development Financial Institutions (DFIs) and Financial Institutions (FIs) by mobilising the latter to develop innovative financial offers and services as well as encourage them to serve new/underserved markets such as women, youth, or the green economy.

The objective of this activity is to foster the emergence of innovative finance tools that better address the financing needs of MSMEs.

The mobilisation of FIs is made around a toolkit that the Programme is developing to build capacity of innovative financial institutions to mainstream development outcomes (impact) in their business model, organisation, structure, workflows and human capital.

The ultimate objective for FIs will be to raise additional concessional resultats from national budgets or Development Financial Institutions (DFIs). This activity will also allow DFIs to access more Tier 2 and 3 FIs during toolkit training / matchmaking events organized in each country by the Programme..