Fluent Africa helped build capacity for SMEs sponsored by a development finance institution

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Case Study

Fluent Africa is an advisory firm that is heads-up and hands-on with Africa

Brief

One of Nigeria’s leading development finance institutions had launched an SME financing scheme across the country. Reports from its bank partners had hinted at ongoing success, but field checks painted a different picture. The DFI then commissioned Fluent Africa to gain true transparency around the performance of the scheme, assess development impacts and bridge capacity gaps of the SMEs in order to create a fly-wheel of success.

Fluent Africa helped build capacity for SMEs sponsored by a development finance institution
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Approach

To establish a solid impact assessment framework and enhance the capacity of the SME customers, we:
  • Validated theory of change / logic model and mapped key indicators to track.
  • Developed a comprehensive M &E system.
  • Designed survey instruments, coding and administration of survey instruments.
  • Conducted focus group sessions and key informant panels.
  • Conducted SME needs assessment and trained 30 SMEs, 5 of whom were selected for business acceleration

Outcome

Our recommendations for improving the SME financing scheme by putting in place a robust M&E system based on a clear logic model. Fluent Africa uncovered five improvement opportunities, implementation of which improved customer service levels and increased aggregate loan performance by 30%. In addition to training 30 SMEs, the insights from our impact report helped to secure additional capital commitments of the DFI’s shareholders.