What We Do
Summit Development Group ("SDG") was established in 2008 and is a Pan-African investment vehicle licensed with the International Financial Services Center of Botswana, with offices in Johannesburg and London. Our company name highlights our focus and what we do:
| S | - SMEs |
| U | - Unbanked and |
| M | - low cost Mortgage finance |
| M | - together, the Missing Middle (MM). |
| I | - Invests in suitable Financial Institutions across Africa and |
| T | - Transforms companies to build value and realize the MM opportunity |
In other words, SDG is focused on developing financial institutions ("FIs") in Sub-Saharan Africa to provide banking and other financial services to the "Missing Middle": SMEs, the unbanked (employees, families and community members of SMEs) and low- and middle-income households in need of mortgage financing. SDG looks to provide an attractive return to investors and have a development impact by creating jobs in Africa.
SDG is unique because its core activity is strengthening and transforming financial intermediaries to provide finance to the Missing Middle. By targeting FIs instead of providing finance directly, SDG can leverage local resources and networks to reach more SMEs and unbanked. SDG builds the capacity of local FIs to serve the Missing Middle so that it strengthens the financial structure in the country to provide a sustainable source of Missing Middle finance.
Through FIs, SDG leverages investment capital through deposit mobilization to increase the pool of available lending to SMEs. This leveraged finance is continually recycled as SMEs repay their loans and the pool of assets available for lending gradually becomes larger. Thus, using banks as intermediaries allows SDG to serve more SMEs and to achieve scale. As SMEs grow and expand, they will create more jobs and contribute to development of local communities.
FI Transformation
SDG utilises a hands-on private equity model, providing capital and active management support as a strategic investor to African FIs. SDG applies a proven business model developed by the SDG management team in Africa that has worked in a variety of FIs in Uganda, Kenya and Rwanda in order to create value and provide financial services to neglected market segments.
Key areas of support include new product and market development, development of innovative distribution channels, improved governance, cost reduction and efficiency improvement, improved risk management, and restructuring through merger opportunities with other companies.
Read more about our Transformation Strategy
Development Impact
SDG's investment strategy reflects the "double bottom line" concept. SDG aims to provide financial returns to investors, but also proposes additional value creation to a wider group of stakeholders in social and environmental dimensions. Alongside capital investment, SDG will raise a pool of grant funding through a Technical Assistance ("TA") Facility to support capacity building at the FI level and to provide training and mentoring support to SMEs.
We contribute to economic growth in the countries where we invest by supporting the development of a dynamic SME sector, creating jobs and wealth, providing low cost housing finance and drawing the unbanked into the financial sector to increase savings and deepen financial systems. Over 10 years, SDG estimates it will deploy $3.8 billion in bank lending to SMEs, creating 1.4 million jobs in Sub-Saharan Africa.
Read more about our Social Development Strategy
