SME IMPACT FUND (SIF) OFFICIALLY LAUNCHED IN TANZANIA

Veteran Tanzanian Entrepreneur, Dr. Reginald Mengi

Match Maker Group (MMG) has officially launched ‘SME Impact Fund’ in Tanzania in a move meant to help SMEs to acquire finances to grow their businesses.

Gracing the occasion at the New Africa Hotel in Dar es Salaam, the veteran Tanzanian entrepreneur and Guest of Honor for the event Dr. Reginald Mengi said that SME Impact Fund is one of those innovative and timely interventions in Tanzania, which comes in the wake of agricultural commercialization through the “KILIMO KWANZA” resolve and other public and private sector programs currently in place.

“I am informed that the feasibility study conducted by Match Maker Group prior to establishing this fund, found out that the ‘missing middle’ gap is apparent in Tanzania. This was confirmed at the Investment Forums all over Tanzania that were attended by Match Maker Fund Management (MMFM) personnel in the last year. Where around 150 SMEs were given the opportunity to present themselves to a range of financial institutions and over 80 percent of them were eager to meet the ‘SME Impact Fund’,” said Dr. Reginald Mengi.

Dr. Mengi called upon Tanzanian investors to approach the fund management and join in this initiative of ‘Impact Financing’ in Tanzania.

The SME Impact Fund essentially provides loans to Tanzanian small medium enterprises in the agricultural business value chains, like processors, dairy factories, etc. Their loans are available for those SMEs that add value up and down the agribusiness value chain; who are in need for working capital or investment finance. SIF loans range between Tshs 100 million to Tshs 1 billion.

“The idea of the ‘SME Impact Fund’ was born because in our consultancy practice we were frequently meeting SME’s; who were frustrated that they could not acquire finance to grow their business. We realized there’s a big economic and social impact lost, as these entrepreneurs were not able to realize their business dream. And so we decided to develop a service that would address their needs in registering the MMFM ltd…” explains Henri Van Der Land one of the Managing Partners of Match Maker Group, native of the Netherlands who’s been in Tanzania for over 20 years.

Match Maker Group (MMG) currently houses two companies namely Match Maker Associates Ltd (MMA) and Match Maker Fund Management (MMFM) with the older of the two MMA having dealt with consulting services for agribusiness in Tanzania for over 10 years.

“Match Maker Associates is the backbone of the group’s initiative. Starting as a private sector consulting and training outfit in 2003, by Henri Van Der Land & myself, 10 years later we have seen great growth both in terms of products and clientele. MMA offers its services mainly in the East and Southern Africa Region and to date over 140 consultancies and trainings have been completed by MMA in over 15 countries.” explained Peniel Uliwa one of the Managing Partners of Match Maker Group in the introductory speeches at the event.

Match Maker Fund Management Ltd was registered in 2011 with the mission of empowering emerging businesses in Africa; to grow with effective impact in their value chain by delivering advisory and financial services in an innovative and entrepreneurial manner. The ‘SME Impact Fund’ is registered in the Netherlands where MMFM is contracted to take care of the business interests of the ‘SME Impact Fund’ in Tanzania.

So far the SIF has already provided 9 loans since July 2013 amounting to around EUR 650,000. At the launch some of these SME’s were present and they shared their business profiles and testimonies via small video presentations that were aired at the event on monitor screens.

All the SME’s in the portfolio are from Tanzania and have shown sustainable production technologies across the agribusiness value chains they’re involved in. Plus the SIF targets only chains that meet the minimum sustainability requirements set in the Funds Social, Economic and Environmental Checklist ("SEEC").

SIF projects that in the next 10 years, they shall have financed over 150 SMEs, creating at least 1,000 additional jobs, increased income for approximately 50,000 small holder farmers using good and sustainable agricultural practices among the beneficiaries. Also, the investors may anticipate a fair return and their capital back at the end of the 10 years lifetime of the Fund.