Transformation Strategy
Typically over a 18-24 month period of transformation the FIs, in which SDG invests, will be built into leading local players in their countries. Transformation will be in three areas.
- TRANSFORM FIs to realize the market opportunity in the Missing Middle where significant un-met demand exists within the financial sector of virtually every developing country.
- TRANSFORM the lives of staff in SDG group companies to realize their human potential by providing a professional environment in which staff can grow- particularly in the area of leadership.
- TRANSFORM financial markets and economies to realize economic growth through increasing savings, having an inclusive banking system and encouraging a dynamic SME sector creating jobs and wealth. This can be achieved through financing, supporting and mentoring of SME owner-managers, increasing the ability of SME employees and the un-banked to save and provide education and health services for their families, increasing access to financial services and increasing the number of decent housing stock and home owners.
Social Development Strategy
SDG's social development strategy reflects the "double bottom line" concept. SDG will deliver financial returns to investors and additional value creation to a wider group of stakeholders in social and environmental dimensions. Fundamental to our long-term value proposition for social development is our belief that SMEs have an important role to play in contributing to the well-being and sustainability of the communities they operate in. Alongside capital investment, SDG will raise a pool of money through a TA Facility to support capacity building at the FI level and to provide training and mentoring support to SMEs.
SDG aims to deliver development returns through:
- Expansion of access to finance for lower and middle income groups
- Deepening of financial market and enhancing country financial structure
- Strengthen capacity of FIs and SMEs
- Creating new jobs through SME growth
In this manner, SDG provides a holistic approach to building the "Missing Middle" market. To illustrate, SDG provides investment capital to financial institutions seeking to expand into SME markets. Through targeted technical support, these financial institutions develop stronger operations, more reliable sources of funds and appropriate products that deliver value to SMEs and unbanked customers.
Through access to a range of financial services and products, SME and unbanked customers can build assets, including savings, and better manage cash flows.Households can pay for education, better food and other consumables, which in turn fuels the economy through spending, taxes paid, SME growth, job creation, and the development of housing and construction markets.