Breakout 2J: Let’s talk business: how to mobilise commercial finance to scale impact

PSD/MSD programmes often operate as first investors in unproven business models in shallow markets. Their task is to stimulate business innovation (and regulatory reform) to make new, inclusive, commercially sustainable business happen. These first investments are typically funded by programmes and business owners co-investing in a business plan. The programme contribution is typically a grant, or sometimes a loan guarantee.

If executed well, this mechanism can create first movers to markets that other businesses had previously been unable to enter, because the risks were deemed too high or the practices required for commercial sustainability were not yet understood. But grants should not be repeated and cannot fund scale. So how can programmes help mobilise commercial finance for relatively successful businesses and sectors that may still appear ‘frontier’ to some financiers?

This fourth and final finance session explores how innovative finance pathways for SME financing discussed in the previous sessions are relevant for PSD/MSD programmes. Programme leads are invited to discuss their ‘mobilising finance 4 scaling’ efforts. Financiers are invited to reflect on these.

The session will be led by Harald Bekkers from the DCED Secretariat, and Debora Randall, Swisscontact.