Let the local guys help...

An evolving product of the ANDE conference, which I hope to write more about soon:

The growing number and capacity of local intermediaries in emerging markets is a success story of Small and Growing Business (SGB) investing. Yet, they have not found their space in the investment value chain. They are underutilized as a potential deal source and investment advisor, with investment funds relying on parallel structures to make investments. This failure to adapt to new possibilities is stunting the growth of SGB investing.

To read more, click here... opinions welcome!

Getting In...

Getting in to social enterprise is notoriously difficult. The same with the charitable sector. I do not remember my own experiences fondly - running up to the stage at BOP conferences in Barcelona, Paris, Warsaw, New York with half of the audience, just to be disappointed to find that the speakers could not give us a job! Or spending two months in Dakar looking for productive work... I wasn't picky.

Having said that, im not sure its supposed to be easy. Those months of really trying show dedication and initiative: Real entrepreneurs are found through a tough selection process. I dont want to undersell it, but supporting a nascent industry in develping countries is not always easy and requires an edge. Not that one is supposed to say this out loud, but its not like im trying to pull up any ladder and am always happy to help those who really try. I am mainly basing this on my experiences which brought me into contact with a lot of people that were just not ready for this, and in the end always left unhappy and with the organization in tatters. There is a darker side to this too: I was in the fortunate position to be able to afford the low wages and distance to family and friends. Many are not, and I am fully aware that this drives an industry that is carved more of one mind than is probably good for it...

The reason I've been thinking about this are a series of posts on Next Billion, most prominently "Looking for ways to get invloved", which seems to advocate Fellowships as the new internships (although internships are still available). New Ventures and the organizations listed are only continuing (or have led) a proliferation of websites and events that give an "in" to the industry (Just Means, Social Edge). By an large they are doing a great job supporting a larger, more sophisticated talent pool, but i wonder at what point there will be too much of a good thing.

Weird Illnesses

There's a lot of things you get by being out here. Experience, excitement, or energy for instance. You also get weird illnesses that let your face swell up the size of a watermelon and mean you can't step outside your apartment for weeks on end. Like me. Thought I might share these rather apetizing photos of me with, well, Mumps. The whole thing sounds worse than it is, particularly with modern advances in painkillers. Its just that its rather a drag. A month in the UK to get my immune system back up to speed sounds like just what I need...

"My people, they are there!"

Those that talk about resentment of old colonial powers are wrong! This taxi driver seems to have a good opinion not only of the UK, but of the UN too. Is it where the money comes from? Premiership football is avidly followed here, a UK education is a must for the middle upper elite. Everything is imported from the UK, even Ribena.

The impact of this is practical on many levels. For a first, I have the impression that it helps me assimilate here. I'm different enough as it is ;)


Sent from my BlackBerry® smartphone from Zain Nigeria

"Global crisis not affecting microfinance"

Its quite astonishing to still see articles about the lacking impact of the financial meltdown on microfinance. I caught the latest one in my blog reader today.

Quite in contrast, there are clear and tangible indications that it is affecting the industry. We dont need and indepth of grassroot impact to show that it does. In the latest expample, CDC is, after government request, diverting Pounds 300mn of its Pounds 650mn investment budget for this year to the IFC-led Global Trade Liquidty Programme, which is targeted at trade facilitation worldwide (not just north-south). The result for CDC is a cut in the amount of money that can be spent on straight emerging market equity, including microfinance. Since 2004 CDC has committed US$84m to microfinance (Annual Report 2008).

Less money, obviously, means less investment in the future. If this is replicated accross development finance institutions (as I know it is) and private investors (who are de-risking portfolio) then we can expect to see much lower growth figures going forward.