Situation
OCA was mandated by USAID and DFID to design a new blended finance fund and technical assistance vehicle focused on the Southern Agricultural Corridor of Tanzania (SAGCOT). The goal of the fund was to stimulate SME growth in the agribusiness sector, realize job creation, and in the long-term create a sustainable fund.
Our Process
- Conduct extensive market research, understanding the SAGCOT market opportunity, gaps in SME access to finance, and existing funding and technical assistance approaches.
- Assess various fund structures and compare benefits/draw-backs to achieve the desired impact
- Prepare a financial model testing different blended financing approaches, including various financial products the fund could offer (debt, equity, quasi-equity, grants), and the impact on investees and fund sustainability
- Design a technical assistance approach, considering variables including management approach, vendor selection, delivery mechanisms, outcome tracking, and others.
- Submit recommendations to and iterate with the project Steering Committee, including donors, government, and private sector stakeholders
- Propose governance mechanisms for the fund and iterate with donor legal representatives on viable options
OCA’s work resulted in the successful design of the SAGCOT Social Venture Capital Fund (SVCF), for which >$20M of funding commitments were earmarked, pending selection of a fund manager.
