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1
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PROMOTING MSME
FORMALIZATION THROUGH THE
COOPERATIVE ENTERPRISE MODEL
WORKSHOP
March 2021
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2
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INTRODUCTION
Msme Business Profiles
• Number of MSMEs: There are 7.4 million MSMEs in Kenya; 1.5 million of these businesses are licensed by the 47 county governments and about 5.9 million are unlicensed. (...) IPC - Internationale Projekt Consult GmbH
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5
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5
IMPORTANCE OF STRONG MSMEs ENTITIES IN KENYA
• Development of strong local economies
• Job creation and Social Stability
• Help Country achieve Big 4 Agenda
• Mitigating imbalance in the balance of payment accounts through its export promotion.
• Assist in distribution of income and wealth.
• Innovation and Risk Taking
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6
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6
EQUITY’S POSITION
EQUITY’S ASSETS QUALITY
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7
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Digital
• Digital Is King-Accelerating Digital Adoption
Restructure
• Introduce new experiences for distressed customers I.e. (...) G.o.K ,MCF,IFC,KNCCI,MSEA
Ecosystem
• Entrenching of Ecosystem in the banking
Payments
• Accelerate the omnichannel(multiple ways for customers to transact) business model, which has become essential rather than optional)
Relationship
• Realign RMs to match new market conditions(Emerging Markets/Relationships)Adaptive
• Need to be adaptive-New Normal in Business Banking
EQUITY’S APPROACH TO SMEs NEEDS
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8
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ASSET FINANCE
❑MOTOR VEHICLE & EQUIPMENT FINANCING- GENERAL-Up to 72 Months
❑INSURANCE PREMIUM FINANCE (IPF)-Up to 10 Months
❑POST IMPORT FINANCE (IBAF/ LOCAL LCS-Tenure of LCs
WORKING CAPITAL
❑BUSINESS LOAN-Up to 36 Months
❑STOCK LOAN-Up to 12 Months(Within Ecosystem)
❑OVERDRAFT-Up to 12 Months
MORTGAGE
❑RESIDENTIAL MORTGAGES-Up to 15 years
❑COMMERCIAL MORTGAGE-Up to 10 Years
❑PLOT PURCHASE-Up to 5 Years
❑PROJECT FINANCE-Up to 10 Years
❑EQUITY RELEASE –CAPEX- Up to 10 Years
Financing SMEs the Equity Way- Product Offering
LOANS
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9
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PRODUCT OFFERING
TRADE FINANCE
Bank undertakings Secured lending to
Customer
Bank handles documents
for payments on customer
behalf
Trade Finance Products
Letters of Credit or
Documentary Credits
Pre shipment Finance
Post Import Finance
Commodity Finance
LPO Finance Documentary Collections
Foreign Demand Drafts
Guarantees or Bonds Clean Collections
Avalising
(Co-Acceptance)
Bank gives value based on
sales Instruments
Invoice Discounting
Bills Discounting
Foreign Bills Discounting
Structured Trade Finance
NON FUNDED FUNDED PAYMENT
(COLLECTIONS)
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10
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Payment Solutions & Platforms
OTC Agency ATM Cards Mobile Internet mPoS /-Po Pay-With-Equity/
(Branch) (Debit/Prepaid/Credit) (USSD/STK/App)(EazzyNet/EazzyBiz) (EazzyPay/ Mpesa Till settlements)
Payment Platforms
PRODUCT OFFERING
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11
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11
OTHER PRODUCTS
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12
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12
Supporting SMEs during Covid-19
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13
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Thank you
Language:English
Score: 923879.6
-
https://sdgs.un.org/sites/defa...20Director%20Equity%20Bank.pdf
Data Source: un
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https://www.un.org/ldc5/ru/content/%D0%BE-%D0%BD%D0%B0%D1%81
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Score: 849587.8
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https://www.un.org/development...tent/%D0%BE-%D0%BD%D0%B0%D1%81
Data Source: un
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Score: 849587.8
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https://www.un.org/development/desa/pd/ru/node/348
Data Source: un
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Score: 849587.8
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https://www.un.org/development/desa/pd/fr/node/347
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https://www.un.org/development/desa/pd/es/node/349
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Score: 849587.8
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https://www.un.org/development...s/content/la-organizaci%C3%B3n
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Score: 849587.8
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https://www.un.org/development.../content/%C3%A0-propos-de-lonu
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“We… have to move beyond positions taken in international
financial fora that are based on where we sit. To advance the needed
international reforms, be it a stronger global financial safety net with
the IMF at the centre, or a system of global finance with less
spillovers, or a system which scales up development finance, we have
to move away from thinking of our positions based on where we sit -
whether I sit in an advanced economy, or a middle-income or low-
income economy.”
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Score: 782776.76
-
https://www.un.org/ecosoc/site.../2019/news-17-21-June-2019.pdf
Data Source: un
Article 25
The full Court shall sit except when it is expressly provided otherwise in the present Statute.
(...) The Rules of the Court may provide for assessors to sit with the Court or with any of its chambers, without the right to vote.
Article 31
Judges of the nationality of each of the parties shall retain their right to sit in the case before the Court.
If the Court includes upon the Bench a judge of the nationality of one of the parties, any other party may choose a person to sit as judge.
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Score: 780561.43
-
https://www.un.org/en/about-us...international-court-of-justice
Data Source: un