IFAD May 19 2016

When it comes to eradicating rural poverty in developing countries, expanding access to finance for small and medium-sized enterprises (SMEs) is crucial.

Keeping this in mind, the G20 Global Partnership for Financial Inclusion (GPFI) established the SME Finance Forum in 2012, a global membership network dedicated to sharing knowledge, spurring innovation and promoting the growth of SMEs. 

Small businesses are essential for economic growth because they account for over 95% of businesses worldwide and provide more than half of all jobs. According to a World Bank research, the poorer the country, the greater the share of employment provided by small and medium enterprises (SMEs). Yet 200 million businesses worldwide don’t have the financing necessary to invest and create new jobs.

To explore this complex topic, IFAD is co-hosting this year’s annual Development Financial  Institution (DFI)/International Financial Institution (IFI) working group meeting of the SME Finance Forum (on 19 and 20 May 2016 in Rome, Italy), entitled “Financing SMEs, leveraging innovation,” in partnership with the International Finance Corporation (IFC).

The Annual DFI/IFI Working Group Meeting serves as a platform for exchanges of knowledge, experiences and good practices. Beyond connecting the DFIs and IFIs, the Annual Meeting is also a convening platform for other global stakeholders in SME finance.

This year, key topics of the event will include:

• - Global value chain finance
• - Small business financing - challenges and solutions to address the finance gap
• - Remittance-based financial inclusion  
• - Bundling financial and Non-Financial Services for innovative financing
• - Building apex institutions for Rural Finance Inclusion: has it been a success?
• - Inclusive SME Finance – A gender/youth perspective
• - Climate finance – mechanisms for adaptation
• - Dealing with Financial Institution clients
• - Equity investment and exit strategies
• - Lessons from impact evaluations of SME financing: return on investment, employment
• - Improving business environment for (agri)-SME development   
• - Alternative finance - Peer lending and crowdfunding opportunities for smallholders and (agrifood) SMEs

IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided about US$17.6 billion in grants and low-interest loans to projects that have reached some 459 million people. IFAD is an international financial institution and a specialized United Nations agency based in Rome – the UN’s food and agriculture hub.

With its unique double role of UN Agency and IFI, IFAD is in the position of bridging the gaps that still exist between markets and regulators, but also between small business and financial institutions, promoting a climate of open discussion and conducive knowledge sharing among the different actors participating in the meeting. 

See https://www.ifad.org/event/tags/y2016/18085918