2nd EIB Eastern Africa SME and microfinance banking forum 2019

2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019 Promoting Best Banking Practices Nairobi, Kenya 16th – 18th October 2019

2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Content EIB Technical Assistance Programme Summary

3

EIB Banking Forum Overview

3

The SME Business Pitch and Awards

4

Day 1 Presentations

6

Day 2 Presentations

11

Forum Statistics

14

Forum Evaluations

14

Annex

15

Agenda

16

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Technical Assistance Programme to EIB Financial Sector Operations in East and Central Africa

The 2nd EIB Eastern Africa SME and Microfinance Banking Forum was organized in the framework of the East Africa Technical Assistance (TA) Programme funded by the European Investment Bank (EIB) and successfully implemented since 2014 by the consortium of AFC Agriculture and Finance Consultants, the Academy of German Cooperatives (ADG), and Integration. The project countries include Kenya, Uganda, Tanzania, and Rwanda, with a total of 34 participating financial institutions (FIs). The main objective of this TA Programme is to support the establishment and growth of micro, small and medium enterprises (MSMEs) across all economic sectors by providing global loan facilities called Private Enterprise Finance Facilities (PEFF) and Microfinance Facilities (MFF), as well as providing TA measures to participating FIs. To date:

Achievements: November 2014 – September 2019

Training

476 Courses

10,346 Trained

Capacity building

237 Country

Kenya

FIs NBIs

Trainings

15

244

Trained

5,290

Capacity Building

MSME Events

MSMEs Trained

Allocation Requests

94

99

1,885

49

Uganda

6

88

2,234

36

78

6,762

49

Tanzania

7

98

2,138

68

125

15,838

29

Activities

MSME Customer Training

312

Events, >70 locations

24,691 MSMEs trained

Rwanda

TOTAL

6

46

684

39

10

206

15

34

476

10,346

237

312

24,691

142

Allocation Requests

142

Processed

EIB Banking Forum Overview The European Investment Bank (EIB), in collaboration with the Trade and Development Bank (TDB) and AFC Agriculture & Finance Consultants, organized the “EIB Eastern Africa SME and Microfinance Banking Forum 2019 - Promoting Best Banking Practices” on 16 to 18 October 2019 in Nairobi, Kenya.

This knowledge sharing and networking event attracted 113 professionals from commercial banks, microfinance institutions, and banking associations as well as other relevant financial sector stakeholders from Kenya, Rwanda, Uganda, Tanzania, Ethiopia, Democratic Republic of Congo, and Somalia. Development partners such as the International Monetary Fund Technical Assistance Centre (IMF AFRITAC), Making Finance Work for Africa, and the Consultative Group to Assist the Poor (CGAP) also contributed to the Forum programme.

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

The SME Business Pitch and Awards The Forum was preceded by a business plan competition award event called the SME Pitch Night on 16 October 2019, which was organized in partnership with Strathmore University Business School. This unique SME event followed the Strathmore University annual SME Conference held in September 2019 (which is covered in a separate report).

The event featured Kenyan entrepreneurial firepower and showcased innovative and outstanding Kenyan businesses all of whom were the finalists amongst those who participated in the business plan competition. From these, the best three were selected and awarded in terms of:

Photo: The three SME Pitch Night winners

Most socially responsible business

Most scalable business

Most innovative business

The three winners were:

For the most scalable business: Mr Charles Mbindo, Logistics Link Ltd Logistics Link Limited is a Nairobi-based company with interests in freight forwarding, customs clearing, warehousing, trucking, and distribution across East Africa, and recently West Africa. The company was founded nine years ago and is present in Kenya, Uganda, Tanzania, Rwanda, South Sudan, and Nigeria. The company seeks to provide end-to-end logistics solutions that meet its clients’ expectations across Africa. Its vision is to be the leading provider of efficient and cost-effective logistics solutions across Sub-Saharan Africa by 2020. They have a track record of excellence wherein in 2016 they received the KPMG SME Top 100 and SME of the Year Awards (SMOYA) Judges Award. In a research conducted last year by the London Stock Exchange Group, PWC and Asoko Insight, they were listed among the Top 360 Companies to Inspire Africa in 2019. The company is one of the few KRA licensed customs agent and with opportunities to scale with the newly signed African Continental Free Trade Agreement.

Number of employees:

35 spread in six countries

Key services sold:

Freight forwarding, customs clearing, warehousing, trucking, and distribution across East and West Africa

End of year profit/ loss (2018):

Total annual sales (2018):

KES 346,334,847

Proposed investment plans:

USD 500,000 to be used for improving on human capital (USD 50,000), improving systems (USD 50,000), and Working Capital (USD 400,000)

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KES 24,656,128

2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

For the most socially responsible business: Mr Lewis Mutuma, Adsolute Systems, trading as Duka-full The company partners with large supermarkets to access large amounts of inventory at reasonable prices to stock small convenience shops or kiosks within Nairobi. This set up allows the kiosks to build a banking history with an intermediary financial institution, consequently enabling them to access more stock.

The business has potential for scalability, and is socially responsible, creating employment and financial inclusion for the bottom of the pyramid. There is innovation in the business model that involves several partners (financial institution, money transfer service, supermarkets, logistics company), although this also poses risks.

Number of employees:

10

Key services sold:

Platform to allow kiosks to access a variety of affordable stocks

End of year profit/ loss (2018):

Total annual sales (2018):

KES 34,364,318

Proposed investment plans:

KES12 million to expand the business to more outlets

KES 5,272,957

For the most innovative business: Mr David Kimani, Vacay Holiday Deals Vacay Holiday Deals is a travel agency providing convenient travel deals by allowing travellers to book in advance and pay in instalments, go on holiday on credit and pay after, and book and pay for flights and hotels online. The ‘Trip Now, Pay Later’ deal allows travellers to pay a 20% deposit, go on a holiday, and pay the remaining balance in 6 monthly instalments. This is offered along with its financial partner, Aspira; therefore there is zero risk for Vacay. The company also has dynamic products that combines flights, accommodation, safaris, and events in one package to help the traveller determine in advance how much the holiday is likely to cost. The company is linked with over 500,000 hotels and 500 airlines across the globe under one website. Travellers are also provided with visa facilitation, airport transfers, travel insurance, and information about their destination. The use of e-commerce allows for scalability and innovation.

Number of employees:

5

Key services sold:

Holiday packages that allow travellers to book in advance and pay instalments; go on holiday and pay after; and book and pay for flights and hotels online

Total annual sales (2018): Proposed investment plans:

End of year profit/ loss (2018):

USD 720,000

15–20% of revenues

USD 170,000 for (i) Hiring an in-house systems development team to revamp the website and implement machine learning and in-depth analytics; (ii) Increasing marketing expenditure to cover all major social media and Google ad platforms; and (iii) Structuring the company to scale by increasing human resources and office space •5•

2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Banking Forum: Day 1 Presentations

Opening Ceremony and Welcoming Remarks

This second high-level annual event was officially opened by the Head of the EIB Regional Office for East Africa, Ms Catherine Collin, who thanked AFC Agriculture and Finance Consultants and TDB for successfully collaborating in this great event. On behalf of the EIB, she expressed gratitude for the successful implementation of the EIB Technical Assistance Programme in East Africa, which has so far benefited over 24,691 MSMEs. She hinted on the prospects for EIB’s further engagement with the financial institutions in Somalia and invited participants to openly engage on the various topics at the Forum. She also welcomed the TDB as the new partner to host the Forum.

Meanwhile, TDB was represented by Michael Awori who appreciated the Forum as an exceptional platform, bringing together all financial sector players including the Central Bank of Kenya, Commercial Banks, Microfinance Institutions (MFIs), and Development Finance Institutions (DFIs) to discuss opportunities and success stories in the region.

He invited the DFIs to make desirable contributions to cover the more than USD 1.2 trillion financing gap that exists for SME development to support SMEs in increasing their influence as factors of change. He concluded his message by thanking the EIB for its commitment to SME development.

On behalf of the European Union, Katrin Hagemann, Deputy Ambassador to the EU Delegation to Kenya, talked very passionately about the EU working with the EIB to positively impact SMEs in East Africa. She emphasized that there is an urgent need to support the investment climate through mobilization of additional finances to achieve the Sustainable Development Goals (SDG).

The Forum will serve as a great platform to exchange and evoke ideas of excellence for future interventions in the financial sector. Indeed, the experience gained so far will be a valuable source of information to design future interventions to support the SME banking and microfinance sectors.

Photo: Katrin Hagemann, Deputy Ambassador of EU Delegation to Kenya

Photo: EIB’s East Africa Regional Office Head Catherine Collin formally opens

Michael Awori, Acting Chief

the Forum.

Operating Officer of TDB.

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describes the Forum as an excellent platform to exchange ideas in the financial sector.

2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Day 1 Presentations

Central Bank of Kenya: The Reshaping of the Financial Sector and the Role of the Regulator

Photo: Sheila M’Mbijjewe, Deputy Governor of the Central Bank of Kenya

Photo: Paolo Lombardo, Deputy Director General of EIB’s Credit Risk Department discusses the effects of climate change in the financial sector.

On behalf of the Central Bank of Kenya, Deputy Governor Sheila M’Mbijjewe delivered the keynote address stating that financial inclusion in Kenya has now reached 83% of the adult population compared to 66% in 2013. The banking sector faces increased competition which ultimately will lead to bank consolidation in Kenya. Among the biggest challenges, the Deputy Governor considers cyber security, money laundering, and banking fraud as the key threats to the financial sector. Because of this, the Central Bank has transformed and promotes a new agenda (the new normal) which entails being customer centric, transparency-driven, and embraces digitalization and innovation. These, according to her, will be the key themes in the financial sector to drive Kenya’s banking regulation. She also thanked the EIB for the role it has already played in Kenya’s financial sector development and encouraged the EIB to do more in Kenyan financial institutions as anchor investor; to provide more support to infrastructure financing needs; and to develop innovative new products and services targeting MSMEs.

Climate Change: A Game Changer for the Financial Sector

Paolo Lombardo, EIB’s Deputy Director General of the Credit Risk Department, provided a general overview of traditional financial crises since 1973 before the introduction of a new systemic risk – climate change.

So far, it is neither fully anticipated nor understood, and thus might lead to worldwide shocks within the financial sector. While talking about the physical risks, transition risks, and liability risks that climate change poses, he highlighted its impacts such as higher insurance claims, portfolio losses, default on loans, litigation risks, and reduced access to finance.

He appealed for specific actions through targeted risk mitigation and adaptation measures to decrease Greenhouse Gas (GHG) emissions by directing financial flows towards climate smart actions, such as impact financing and green bonds issuances. He concluded by stating that “the green economy is the new opportunity” and invited financial institutions to continue to raise the bar to address climate related risks and to “green” the financial system.

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Day 1 Presentations

Managing Distressed Assets

Adoption of Basel II & Best Banking Practices

Wycliff Bbossa of TDB’s Executive Portfolio Management Department shared the bank’s NonPerforming Loan (NPL) management methodology which involved defining a strategy for the NPL unit, segmenting the portfolio, identifying routes to recovery and exit options, and designing target operating models as well as aligning NPL units operating model with work out solutions. He further emphasized the need to develop clear policies and procedures to manage NPLs.

Courtney Christie-Veitch, Financial Sector Supervision Advisor at the International Monetary Fund (IMF) Tanzania hinted on the Basel II adaptation by many financial sectors and highlighted the countries which were doing well in the East African region. He also underlined that Malawi and Kenya are actually striding towards Basel III and focusing on the CAMELS model as International Best Practice Standard for Banks.

He challenged the Dead Horse Theory by emphasizing continuous engagement, communication, and negotiations with existing clients in a bid to preserve a strong client-bank working relationship.

He called on the financial institutions to continuously conduct selfassessment on their capital adequacy, asset quality, management soundness, earnings and profitability, liquidity, and sensitivity to market risks. Enhancing this model is essential in insulating the bank from reputation or regulatory risks, business strategic or operational risks, and systemic risks.

Photo: Courtney Christie-Veitch, Financial Sector Supervision Advisor at the IMF Tanzania discusses Basel II and best banking practices.

Photo: Wycliff Bbossa, of TDB’s Executive Portfolio Management Department shares the NPL management strategies in the Forum

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Day 1 Presentations Photo: Andrew Obara (AFC) & Nicholas Nzioka (EIB) moderate the session

Photo: Economist Ricardo Santos of EIB’s Economics Department discusses the trends in the East African Banking Sector

East Africa Banking Sector Trends – Recent Developments

EIB Support to SME Banks and Microfinance Institutions – Survey Results and Debate

Ricardo Santos from EIB’s Economics Department and Jared Osoro from the Kenya Bankers Association highlighted the structure and state of the banking sector and policy highlights.

The Forum also became a venue for an open debate on the results of the banking survey on banking performance expectations and on how the EIB could further improve its financial services value proposition in the region.

Availability of medium to long term credit lines (in the next three years) from international development finance institutions such as the EIB was rated by intermediaries to be of highest importance at 83.3% followed by the provision of technical assistance programmes.

It was interesting to note that East Africa has performed better than both the global economy and Sub-Saharan Africa due to private sector and SMEs’ investments. Both play a more critical role in East Africa towards the positive performance due to a smaller resource-dependency (SMEs account for more than 30% of economic output and 80% of total employment).

They closed the discussion by indicating that in the face of mounting public debt, the journey of fiscal consolidation will influence credit allocation by banks. Thus, the need to continue deploying technology for efficiency and cost management as well as product design that utilizes the analytical capability of data abundance is expected. Investments in financial resources, personnel, and technology are anticipated to remain on the fore towards ensuring that banks remain compliant to regulations.

The part on what further services EIB could offer to support the development of M/SMEs businesses in the partner countries, the participants confirmed that loan guarantees (especially for agricultural finance) training/ capacity building of bank staff as well as support to build the managerial capacities of M/SMEs are the areas where EIB could focus its future interventions.

Photo: On the panel (from left to right): Klaudia Berger (EIB), Hannah Siedek (EIB), Carmelo Cocuzza (EIB), Robert Schofield (EIB), and Guillermo Bosse (Regional Team Leader TA Programme)

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Day 1 Presentations

Developing Market for Green and Themed Bonds: The Growing Appetite for Impact Delivery

Best Practices in SME Finance

Michael Steidl, EIB’s Senior Technical Assistance Officer for SME Banking, begun the session by explaining the importance of SMEs as engines of economic growth and employment creation.

He also highlighted some of the challenges encountered including lack of bankable projects, poor financial management, lack of collateral, and financial literacy. He challenged financial institutions with the need to become aware of the mismatch that exists between the banks’ requirements and the SME balance sheet.

David Ashiagbor of Making Finance Work for Africa chaired the capital markets panel, consisting of Robert Murai (Stanbic Bank Kenya), Ngatia Kirungie (Director, Spearhead Africa), Robert Schofield (EIB), and Antonina Kaiyetsi (TDB). During the session, vital principles were presented, focusing on climate smart investments while considering impact rather than just financial returns, Environmental, Social, and Governance (ESG) frameworks, and the need for third party certifiers on the utilization of green or themed bond issuances.

Technologies such as artificial intelligence, big data, distributed computing (cloud computing), developments in cryptography and mobile access, and internet coupled with the disruptive forces including cost commoditization, profit redistribution, experience ownership, platforms rising, data monetization, and financial regionalization will be key drivers of change in business.

“Green will come not from regulators but from the investors”. The aspirations to develop green bond and SDG related issuances to diversify loan portfolios should be a goal set for each institution to promote not only climate change mitigation and adaptation but also to meet SDG targets achievement.

It was overwhelmingly acknowledged that the momentum for green and themed bond issuances by financial institutions will further accelerate in the years to come.

Financial Institutions need to identify ways to effectively meet SME demand through responsive products, channelling, and financing gaps. He presented the example of the Jordan Collateral demonstrating how chattels can be used for collateral.

Photo: Robert Schofield (leftmost) responds to a question on

Photo: Michael Steidl (EIB) highlights

Standardization of Green Bonds by EIB.

Rapid Fintech Credit.

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Day 2 Presentations

Boosting Banks Business and Supporting National Development through Sustainable Agricultural Finance

A New Client Segment for Financial Institutions – Financing Refugees

Andrew Obara of AFC moderated and began the session with an economic and business case for agricultural finance. He then gave the floor to each of the four panellists to present on a particular aspect of agricultural finance. The panellists are:

The panel was moderated

by Hannah Siedek, EIB’s Microfinance Impact Investment Officer who presented a case study of Uganda— where the EIB has been supporting Centenary Bank in promoting credit to refugees— to reflect on the financial profile of refugees and how their credit profiles differ from those of other microfinance clients.

Esther Muiruri, Director of Agribusiness at Equity Bank Group, introduced the success pillars for sustainable agricultural finance including the value chain approach, strategic partnership, technology, and capacity building i.e. training farmers and agricultural SMEs. Evans Nakhoko, Head of Agricultural Finance at Centenary Bank, discussed how FIs can address the challenges of smallholder agricultural financing in East Africa. He elaborated on principles of immediacy, affordability, progressiveness, dignity, convenience, and transparency.

Agnes Mayanja, Head of Risk, DFCU Bank talked about future prospects, challenges, and solutions to agricultural finance in the region at the institutional, financial institution, and farm/ SME levels.

Johannes Buschmeier, Managing Director at AFC Agriculture and Finance Consultants focused on the need to have well established cooperation between FIs and agricultural value chain actors, e.g. through contract farming and linkages to processing.

This panel’s topic emphasized the importance of the agricultural sector in contributing to job creation in East African countries. It was followed by an interactive and lively question and answer session.

Photo: On the panel (from left to right): Agnes Mayanja (DFCU), Johannes Buschmeier (AFC), Andrew Obara (AFC), Evans Nakhoko (Centenary Bank), Esther Muiruri (Equity Bank Group).

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Robert A. Kakande’s (ED, Finca Uganda) and Charles Kabanda’s (Head of Retail & Microfinance, Centenary Bank) further contributions led to conclude that the refugees’ financial profile is fairly similar to other microfinance clients, whilst refugees often lack a social network as well as appropriate forms of personal identification through which they can be tracked and/ or referenced.

2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Day 2 Presentations

Women in Business and Gender Finance

Digitalization of SME Banking: Learning Tools and Applications

This panel was moderated

by Titus Karanja (AFC) and stimulated knowledge sharing and exchange as experts shared insights on what the SME will look like in the next five years with digitalization.

The panel started with a demonstration of Popote Innovations as a financial services digital solution provider for SMEs, followed by the Gateway Academy, which is an e-learning platform developed by CGAP, offering solutions focused on financial inclusion and delivering timely training with the essential need for faster performance impact. The Forum agreed that digitalization of financial services and cybersecurity need to be high on the agenda, especially to deepen financial inclusion and reach out to women and youth target groups.

Photo: On the panel (from left to right): Josephine Kibe (CGAP, Gateway Academy), Fidelis Muia (Kenya Banking Association),

This session was moderated by Klaudia Berger (EIB), who introduced the topic of developing lending instruments to women in business and also referring to EIB’s provision of technical assistance to the Uganda Development Bank to develop their gender-based lending. The panellists for this session were: Dr Natalie Schoon, Senior Gender Expert AFC, who presented gender finance issues and talked about the ongoing debate regarding gender specific finance for women; confirming among others that women are better borrowers than men and discussing whether women should have different terms for accessing credit as well as separate lines of credit.

Eleni Kyrou, Head of EIB Representation to Ethiopia and the African Union, Gender Advisor for ACP, presented the case study of an EIB investment in Ethiopia, Women Entrepreneurship Development Project (WEDP), an all-women lines of credit programme carrying NPL rates of only 1-2%. The success and sustainability of the programme is further underlined by the 5.5-fold increase registered in the MFIs’ loan size since the programme started, as well as by the fact that MFIs have embarked upon providing about 25% of additional loanable fund from own finance resources. She stressed that impact monitoring data to date confirms beyond doubt that increased access to credit by women entrepreneurs contributes to economic growth through employability and profitability.

Jennifer Bash, Founder of CEO Alaska Tanzania, drew from her own experience as an entrepreneur, inviting bankers to revisit their financing perceptions and approaches because the starting point of men and women entrepreneurs is different.

She emphasized that it is of great importance that bankers understand and adapt to the needs of their female clients and develop specific products for them.

At the end of this panel, it was proposed that Financial Intermediaries (FIs) might need to introduce psychometric tests at appraisal to predict a person’s ability to repay.

Sam Wanjohi (Popote Innovations).

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Day 2 Presentations

Success Factors and Challenges in Training Micro & SME Customers from Financial Institutions, including Business Clubs

Institutional and Legal Challenges in Banking – A Regional Perspective

This session was moderated by Erick Chrispin, MSME Training Specialist (AFC), who provided a brief background on the impact of MSME interventions during the life time of the EIB funded TA programme that trained more than 24,000 MSMEs.

The final speaker of the Forum was David Bamlango, General Counsel of TDB who emphasized the need to pursue the attainment of SDG 16 on peace and justice through strong institutions and that the lack of rule of law and justice creates a very defensive (risk averse) system in a banker.

He went on to introduce the panellists of the session, namely: Donatus Richard, Head of SME Business Banking, NMB Tanzania, highlighted that the SME trainings and Business Clubs were a great platform for driving loyalty among its customers. The bank witnessed growth in a professional manner through access to markets. NMB EXCO received healthy feedback from the business clubs and acted immediately by purchasing a credit-scoring tool, which helped improve turnaround time from 90 days to 1-4 days.

He acknowledged and appreciated the EIB’s technical assistance support in this regard.

William Mugerwa, Senior SME Expert (AFC) highlighted a few of the challenges experienced during the MSME trainings such as the situation where owners of these enterprises delegate junior staff to attend the trainings. Furthermore, he voiced out that the FIs only organize trainings after something has gone wrong and that formalization is feared by the SMEs because of fear of increased scrutiny and taxation.

He shared the rule of law index, ranking various East African countries and concluded by inviting the participants to promote the rule of law and access to justice for everyone in their respective countries.

The panel recommended that FIs adopt pre-disbursement literacy and business trainings for their clients as well as organize client days where they interact and get feedback. Finally, the FIs should connect with private sector service providers to develop templates for record keeping, bookkeeping, and business planning.

Photo: David Bamlango, General Counsel of TDB discusses the legal and institutional challenges in banking.

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Day 2 Presentations

Forum Statistics THE FORUM WAS ATTENDED BY

113

45

professionals from

different institutions across the region

Wrap-up and Closing

EIB’s Carmelo Cocuzza and James Kabuga of TDB Academy officially concluded the SME and Microfinance Banking Forum 2019 and acknowledged AFC, TDB, Strathmore Business School, and the EIB Regional Office for successfully organizing the event.

James Kabuga thanked the participants on behalf of TDB and summarized the main takeaways from the pertinent and useful issues raised during the Forum and affecting each of the financial sector intermediaries. He invited participants in advance for the 3rd edition of the Forum in 2020, which will be organized by TDB.

Photo: Carmelo Cocuzza delivers the

(45 from Kenya, 4 from Tanzania, 14 from Uganda, 7 from Rwanda, 1 from DRC, and 4 from Somalia) as well as the EIB, AFC Experts, Representatives of the IMF, the EU Institutions and Embassies, Making Finance Work for Africa, and CGAP.

THE FORUM’S INTENSITY CAN BE SUMMARIZED AS FOLLOWS:

25

8

7

23

15

Presentations

Moderators

Panels

Panelists

Topics

Forum Evaluations The results from the feedback forms provided by participants at the close of the Forum show that the Forum was of “great value” to them.

97%

100%

97%

92%

indicated that the presenters and their presentations were good/ very good.

considered the presenters’ knowledge as good or very good

rated the quality and usefulness of the presentations and topics as good/ very good.

rated the networking possibilities above average

closing remarks

Photo: James Kabuga, Senior Advisor, Trade and Development Bank Academy, thanks the participants in his closing remarks.

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Annex

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Agenda Wednesday, 16th October 2019 SME Business Competition Finalists Pitch Night and Awards Ceremony in collaboration with Strathmore University Announcement of the winners of the SME Business Competition

Thursday, 17th October 2019 Opening Speeches Catherine Collin • Head of EIB Regional Office for East Africa Michael Awori • Acting Chief Operating Officer, Trade and Development Bank Group (TDB) Keynote Speeches Katrin Hagemann • Deputy Head, Delegation of the European Union to Kenya Sheila M’Mbijjewe • Deputy Governor (DG) of the Central Bank of Kenya Mobile banking: the re-shaping of the financial sector and the role of the regulator Climate Change: A Game Changer for the Financial Sector Paolo Lombardo • Deputy Director General Credit Risk Department, EIB Managing Distressed Assets Wycliff Bbossa • Executive Portfolio Management Department, TDB Feedback and discussion session East Africa Banking Sector Trends – Recent Developments Ricardo Santos • Economist, Economics Department, EIB Jared Osoro • Director of Research and Policy, Director of the Centre For Research on Financial Markets and Policy, Kenya Bankers Association Adoption of Basel II and Best Banking Practices CCourtney Christie-Veitch • Financial Sector Supervision Advisor at the International Monetary Fund (IMF), Tanzania EIB Support to SME Banks and Microfinance Institutions – Survey Results and Debate Moderators: Andrew Obara • Long Term Expert, TA Programme, AFC Nicholas Nzioka • Senior Project Officer, EIB SME and Midcap Credit Lines Robert Schofield • Head of Financial Sector Division, Global Partners Department, EIB Microfinance Credit Lines Hannah Siedek • Equity New Products and Special Transactions Department, EIB Technical Assistance Programme in East Africa Carmelo Cocuzza • Head of TA Unit, Global Partners Department, EIB Klaudia Berger • Programme Coordinator, Inclusive Financial Services Unit, EIB Guillermo Bosse • Regional Team Leader, EIB TA Programme, AFC Kenya Participants’ Survey Results, feedback and discussion session

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Developing the market for Green and Themed Bonds: the Growing Appetite for Impact Delivery Moderator: David Ashiagbor • Making Finance Work for Africa, ADB Panelists: Robert Murai • Manager, Debt Capital Markets, Stanbic Bank Kenya Ngatia Kirungie • Director, Spearhead Africa Robert Schofield • Head of Financial Sector Division, EIB Antonina Kaiyetsi • Joint Head, Financial Management and Treasury Complex, TDB Q&A Best Practices in SME Finance Michael Steidl • Senior Advisor, Inclusive Financial Services Unit, EIB Q&A

Friday, 18th October 2019 Welcome and Opening Carmelo Cocuzza • Head of TA Unit, Global Partners Department, EIB James M. Kabuga • Senior Advisor, Trade and Development Bank Academy, TDB Boosting Banks’ Business and Supporting National Development Through Sustainable Agricultural Finance Moderator: Andrew Obara • Long-term Expert, AFC Uganda Panelists: Johannes Buschmeier • AFC Managing Director Esther Muiruri • Director of Agribusiness, Equity Bank Group Evans Nakhokho • Head of Agricultural Finance, Centenary Bank Agnes Mayanja • Head of Risk, DFCU Bank Q&A A New Client Segment for Financial Institutions – Financing Refugees Panelists: Charles Kabanda • Head of Retail & Microfinance, Centenary Bank Robert A. Kakande • Executive Director FINCA Uganda Limited (MDI) Q&A - Moderator: Hannah Siedek • Microfinance Impact Investment Officer,EIB Digitalization of SME Banking: Learning tools and applications Moderator: Titus Karanja • Long-term Expert, AFC Kenya Speakers and Panelists: Josephine Kibe PhD • CGAP, Gateway Academy Fidelis Muia • Director Technical Services, Kenya Banking Association Sam Wanjohi • MD Popote Innovations Ltd (SME payments aggregator already in partnership with some Kenyan Banks) Q&A Presentation of SME Products just developed for Africa by TDB Andrew Bamugye • Senior Investment Manager SME Business TDB

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Women in Business & Gender Finance Moderator: Klaudia Berger • Programme Coordinator, Inclusive Financial Services Unit, EIB Speakers and Panelists: Eleni Kyrou • Head of Representation Ethiopia and AU, Gender Specialist, EIB Jennifer Bash • Founder & C.E.O Alaska, Tanzania Dr. Natalie Schoon • Senior Expert, AFC Q&A Success Factors and Challenges in Training Micro & SME Customers from Financial Institutions, including Business Clubs Donatus Richard • Head SME Business Banking, NMB Tanzania William Mugerwa • Senior Expert, AFC Q&A - Moderator: Erick Chrispin • MSME Training Specialist and Coordinator, AFC Tanzania Institutional & Legal Challenges in Banking – A Regional Perspective David Bamlango • General Counsel, TDB Wrap-up and Closing of the Forum Carmelo Cocuzza • Head of TA Unit, Global Partners Department, EIB James M. Kabuga • Senior Advisor Trade Development Bank Academy, TDB

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

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2nd EIB EASTERN AFRICA SME AND MICROFINANCE BANKING FORUM 2019

Contacts AFC Agriculture & Finance

European Investment Bank

Consultants GmbH

European Investment Bank Regional Office for Central and Eastern Africa

Baunscheidtstr. 17, 53113 Bonn,

98-100, Boulevard Konrad

Keystone Park, Block A, 3rd

Germany

Adenauer, 2950 Luxembourg

floor,Riverside drive 95, PO Box 40193, 00100 Nairobi,

Phone: +49 228 985 790

Phone: +352 437 91

Kenya

Project Manager:

Website: http://www.eib.org/en/

Phone: +254 202 735 260

Information about EIB projects

E-mail: nairobi@eib.org

Holger Christ E-mail: holger.christ@afci.de

for SMEs: http://www.eib.org/en/ projects/priorities/sme/index.

Project website: www.ta-eca.eu

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DISCLAIMER: This technical assistance operation is funded by the European Union under the Cotonou Agreement. The authors take full responsibility for the contents of this publication. The opinions expressed do not necessarily reflect the view of the European Union or the European Investment Bank.

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