Content - DEG: Mehr als Finanzierung · SME – entrepreneurship at its best ... Prior to this assignment, Mr Koskelo was Vice President, Europe, Central Asia, Latin America and the

THE ATRIUM DIALOGUESSME – entrepreneurship at its bestThe DEG Conference on SME Finance and the G-20 SME Finance Challenge PresentationCologne, 15 and 16 November 2010

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Content

Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02

Regional Workshops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03

Contributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04

The DEG Conference on SME Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

The DEG in profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18


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Agenda

Monday, 15/11/2010 from 05:45 p.m. onwards Register06:15 p.m. Welcome: Mr Bruno Wenn, Chairman of the Managing Board, DEG06:20 p.m. Dinner and dinner speech 10.00 p.m. End

Tuesday, 16/11/2010 from 09:00 a.m. onwards Register09:30 a.m. Welcome: Mr Bruno Wenn, DEG 09:40 a.m. Opening remarks: Ms Gudrun Kopp, Parliamentary State Secretary to the

Federal Minister for Economic Cooperation and Development / Chairperson of the Supervisory Board, DEG

10:00 a.m. Keynote speech: "Ways out of Poverty – Support for Promising SMEs“ by Dr Michael Klein, formerly IFC

11:15 a.m. Coffee break 11:45 a.m. "Champions of the 21st Century - Success Strategies of Unknown World Market

Leaders" by Prof. Dr. Dr. h.c. Hermann Simon, Simon-Kucher & Partners12:30 a.m. Lunch snack 01:30 p.m. Presentation of the results of the G-20-meeting in Seoul on Financial Inclusion by

Ms Susanne Dorasil, Federal Ministry for Economic Cooperation and Development,Nancy Lee, U.S. Treasury, Shepherd Muzamba, National Treasury South Africa Co-Chairs of the Financial Inclusion Expert Group

02:15 p.m. Panel discussion G-20 SME Finance Challenge with Stuart Yasgur, Ashoka’s Changemakers Elizabeth Wallace, Competition Judge and Mutle Mogase, Competition Judge

03:15 p.m. Marketplace – "walk about" around the Atrium, meeting the winners, including coffee break

04:00 p.m. Regional workshops on SME Finance (Africa, Asia, Eastern Europe, Latin American,German corporates)

05:00 p.m. Panel discussion "SME Finance – Next Steps" with Dr Christiane Bögemann-Hagedorn,Federal Ministry for Economic Cooperation and Development; Mr Subhrendu Chatterji,GEM Group; Mr Jyrki Koskelo, IFC; Mr Jerome Yazbek, Farmsecure Capital (Pty.) Ltd.

05:20 p.m. Closing remarks: Mr Bruno Wenn, DEG05:30 p.m. End


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Regional workshops

16. November 2010, 04 - 05 p.m.

1. Workshop: AfricaRoom: 176, first floorOpportunities and shortcomings of SME finance inAfrica using the example of the agricultural sector

Lecturer: Mr Jerome Yazbek, Group CEO Farmsecure Holdings;Mr Olav Boenders, Director Wagagai Ltd.Host:Ms Manuela Marques, Head of Portfolio Management Africa, DEG;Mr Ragnar Gerig, Head of New Business Africa, DEG

2. Workshop: AsiaRoom: 177, first floorRisk Capital for SME

Lecturer: Mr Garry Dodge, Vice-President, SEAF; Mr Rolf Gerber, Head of Portfoliomanagement Asia, DEGHost:Mr Peer Stein, Global Head SME, IFC

3. Workshop: Latin AmericaRoom: 178, first floorExperiences with SME using the example of Latin Ame-rican companies and banks

Lecturer:Mr Federico Chavarria Vargas, Sub Gerente de Negocios, Banco Promericaand othersHost:Mr Justus Vitinius, Head of New Business Latin America, DEG

4. Workshop: German SMEsRoom: 179, first floorFinancing required by German SME for their subsidia-ries in developing countries / Overview of programmefinancing by DEG including two examples

Lecturer:Mr Alexander Mesdaghi, Managing Partner of Schmetz GmbH;Mr Hans W. Meier-Ewert, Executive Board Member of “Afrika-Verein”;Mr Rolf Grunwald, Head of Department German Corporates, DEG;Mr Hans-Joachim Hebgen, Head of Department Special Programmes, DEGHost:Mr Hans W. Meier-Ewert, Executive Board Member of “Afrika-Verein”

5. Workshop: Eastern EuropeRoom: 135, first floorSME - Engine of Growth (with examples from Serbiaand Russia)

Lecturer: Ms Ana Gacic, Belgrade Branch Assistant Manager, Komercijalna banka ad Beograd;Mr Vasily Vysokov, Chairman of the Board of Directors, JSC Commercial Bank Center-Invest Host:Mr Franz-Josef Flosbach, Head of New Business Europe, Middle East, Central Asia,DEG


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Contributers

HOST

Hans Jessen Hans Jessen is a journalist, presenter and chief editor of the regional ‘buten un binnen’ television newsprogramme produced by the Radio Bremen public broadcasting corporation. From 1999 to 2006, heserved as a television correspondent at the ARD’s studio in the capital city of Berlin, where he focusedmainly on foreign policy, development cooperation and environmental issues. Shortly after, he was ap-pointed chief editor of the ‘Bericht aus Berlin’ news programme. He was appointed editor at RadioBremen in 1986 and then chief editor in 1990.Mr Jessen is also a member of an international training team. He has been organizing courses in tele-vision journalism in Western and Eastern Europe since 1994 and has hosted numerous events concer-ning development cooperation.Mr Jessen studied German language and literature, political science, sociology, psychology and educa-tion, qualifying as a teacher in 1979.

SPEAKERS

Dr Christiane Bögemann-HagedornDr Christiane Bögemann-Hagedorn has held the position of Deputy Director General “Civil Society, Pri-vate Sector” at the Federal Ministry for Economic Cooperation and Development since 2009. She studied law, social anthropology and sociology at the University of Münster passing her first stateexamination for law in 1980. She continued training at the district courts of Hagen and Münster con-cluding this part of her education with the second state examination for law in 1983. She then spent the following year in Mexico carrying out field research into social anthropology. In1985, she was appointed assistant lecturer to the “Seminar für Völkerkunde” (“Seminar for Ethnology”)at the University of Münster. She joined the BMZ in 1986. There, she worked as personal assistant to the secretary of state and fo-cused on matters concerning Central Africa, bilateral cooperation, the European Union and organiza-tion. She has headed the West Africa division since 2000.She spent the period from June 1987 to July 1991 at the German Embassy in Khartoum on second-ment to the German Foreign Office where she held the post of First Secretary for Development Coope-ration. Dr Bögemann-Hagedorn was awarded a doctorate in Social Anthropology from the University of Frei-burg in 1995. She is married and has two children.


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Subhrendu ChatterjiSubhrendu Chatterji is Managing Director at GEM Management Limited.Global Emerging Markets (“GEM”) was founded in 1991. It is an alternative investment group that ma-nages a diverse set of investment vehicles focused on emerging markets across the world. The partnershave a century of collective experience and as a group have invested in 265 companies across 55countries. GEM’s investment vehicles provide the group and its investors with a diversified portfolio ofasset classes that span the global private investing spectrum. Prior to joining GEM Management Limited, Subhrendu Chatterji was Managing Director at Sabre Capi-tal Ltd.

Susanne Dorasil Susanne Dorasil has been Head of the “Economic Policy; Financial Sector” Department of the FederalMinistry for Economic Cooperation and Development (BMZ) since 2008. This unit focuses amongstother things on the issues of financial sector, on sustainable economic development and on good cor-porate governance. She is also Co-Chair of the Financial Inclusion Expert Group - Germany.Before heading her current department, Susanne Dorasil worked at the regional West Africa depart-ment of the Federal Ministry for Economic Cooperation and Development as personal assistant to thesecretary of state, as well as for the office of the ministry’s general counsel. She was also Senior Advi-sor to the office of the German Executive Director of the World Bank in Washington D.C. Her tasksthere focused on the areas of resource allocation and financing instruments, the International Deve-lopment Association (IDA), education, corporate governance, good governance, fragile states and envi-ronmental and social standards.Susanne Dorasil studied law at the Freie Universität Berlin and earned a master of laws degree atKing’s College, London.

Dr Michael Klein Dr Michael Klein worked at the World Bank from 1982 to 2009, most recently as Vice President for Fi-nancial and Private Sector Development for the World Bank Group and as Chief Economist, Internatio-nal Finance Corporation. He was Chief Economist of the Royal Dutch/Shell Group from 1997 to 2000and headed the unit for non-OECD economies at the OECD Economics Department from 1991 to 1993.Before joining the World Bank, he worked with Amnesty International and served on its German Boardfrom 1977 to 1979 and its International Executive Committee from 1979 to 1982.Dr Klein studied in Bonn, New Haven and Paris and received his doctorate in economics from BonnUniversity in Germany.

Gudrun Kopp Gudrun Kopp was appointed Parliamentary State Secretary at the Federal Ministry for Economic Co-operation and Development (BMZ) on 28 October 2009.


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In 1998, she was elected to the German Bundestag (Lower House of the German Parliament), whereshe took on the task of FDP parliamentary spokesperson on consumer policy, then later energy policyand, from 2005 to 2009, energy policy and global trade issues. As a Member of the German Bundes-tag, she was appointed to the Committee on Economic Affairs and Technology, the Committee on Eco-nomic Affairs and Employment, and the Subcommittee on Regional Economic Policy. From 1998 to2002, she served as spokesperson for the Study Commission on Globalization of the World Economy.Gudrun Kopp participated in the WTO Conferences in Doha, Cancún and Hong Kong. She also carriesout voluntary work for various charities. She is, for example, a senior member of the Dr. hc Pe. Wil-helm Rossmann Foundation in Lemgo, which supports the disabled and visually impaired in SouthAmerica, particularly in Peru, and helps provide education, training and healthcare to this section ofthe population.Gudrun Knopp was born in 1950 and has been a member of the Free Democratic Party (FDP) since1975. She originally trained as an export manager and as an interpreter and translator for English andSpanish, specializing in the fields of economics and electrical engineering. She was later employed asan executive in various companies. She is married, has two adult children and lives in Lage on theRiver Lippe in the state of Northrhine-Westphalia.

Jyrki KoskeloJyrki Koskelo, a Finnish national, is IFC’s new Vice President for Global Industries, and a member of theManagement Team. He will oversee investment operations activities, including strategic initiatives toaccelerate and expand innovation, new product development, and global investment initiatives.Prior to this assignment, Mr Koskelo was Vice President, Europe, Central Asia, Latin America and theCaribbean, and Global Financial Markets, where he led IFC’s activities in these regions and on this sec-tor. Previously, he was Vice President, Africa, Global Financial Markets, and Funds, where he led IFC’sbusiness in Africa and provided leadership to the departments serving Global Financial Markets as wellas Private Equity and Investment Fund. From April 2004, he was IFC’s Director for Global FinancialMarkets, where he led the significant expansion of IFC’s business in housing finance, micro-finance,insurance and banking. He also led the launch and successful implementation of the IFC Global TradeFinance Programme, sustainability finance, and SME financing, particularly in frontier markets, afterserving as Director of Special Operations, where he had responsibility for managing IFC’s restructuringand recovery operations during the Asian, Argentinian, and Russian crises.Mr Koskelo has had extensive experience globally across sectors, including manufacturing, infrastruc-ture and extractive industries. He has also held responsibilities in Central and Southern Europe, wherehe served as IFC’s Country Anchor for Estonia, Latvia, Lithuania, and Poland. Prior to joining IFC, Mr Koskelo spent more than ten years in senior management positions in the pri-vate sector, including as Managing Director of Georeda Ltd., a large engineering company in Saudi


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Arabia with six branch offices, and as Vice President of Finance for Geo-Hydro, Inc. in Rockville, Mary-land, a high technology company he co-founded.Mr Koskelo holds a Master of Science degree in International Management/Finance from MIT’s SloanSchool of Management and a Master of Science degree in Civil Engineering from the Technical Uni-versity of Helsinki, Finland.

Nancy Lee Nancy Lee is the U.S. Treasury’s Deputy Assistant Secretary for the Western Hemisphere, responsiblefor managing the Treasury’s engagement in economic and financial issues with Latin America, the Ca-ribbean and Canada. In 2008, she spent a year on sabbatical as a Visiting Fellow at the Center for Glo-bal Development in Washington, focusing on the future of regional integration in the WesternHemisphere. She was the Treasury’s Deputy Assistant Secretary for Europe, Eurasia and the WesternHemisphere from 2002 to 2007. Previously at the Treasury, she was the Director of the Office of Cen-tral and Eastern Europe, Director of the Office of Mideast and Central Asia and Deputy Director of theOffice of Asian and Near East Nations. Also at the Treasury, she served in the Office of InternationalMonetary Policy, working on G-7 issues and US policy in the IMF, and in the Office of InternationalTrade Policy. She was a Treasury negotiator in the Uruguay Round trade negotiations and in the earlypart of the NAFTA negotiations. Prior to her work at the Treasury, she conducted economic research onUS trade and investment relations with developing countries at the Commerce Department. In 2002,Dr Lee became a member of the Council on Foreign Relations. In 2001, Dr Lee was a recipient of theMeritorious Executive Presidential Rank Award.She holds a Ph.D. and an M.A. in economics from Tufts University and a B.A. in economics from Wel-lesley College. She is married with two children.

Mutle Mogase Mr Mogase is the co-founder and Executive Chairman of Vantage Capital Group, an investment andfinance house. Vantage Capital was formed after the merger of MMR Equity Capital, of which Mr Mo-gase was a joint founder, with Vantage Capital in 2001. Vantage Capital remains primarily focused onprivate equity investment activities and investments for its own account and is one of the only remai-ning black-controlled, independent private equity firms in South Africa. To date, Vantage CapitalGroup has funds under managements and investments of over 2.5 billion rand. Vantage Risk Capital, asubsidiary of Vantage Capital Group, was launched in 2006. It has successfully raised a one-billionrand Mezzanine Fund from local and international investors. The Mezzanine Fund final closing was inOctober 2007. To date, it has invested over 800 million rand in four investments.Mr Mogase is a former chairman of the Southern African Venture Capital and Private Equity Associa-tion (SAVCA). The SAVCA aims to promote the venture capital and private equity industry in SouthernAfrica and represent the profession at the national and international level. Mr Mogase also chairedthe Micro Finance Regulatory council (MFRC) and it was during his tenure that the New Credit Act


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was developed. Mr Mogase has recently been appointed as a chairman of African Bank Ltd, a specialistmicro lender listed on the Johannesburg Stock Exchange. Mr Mogase commenced his working careeras an Internal Auditor at LTA Construction Ltd in 1987. After serving as Financial Manager and Finan-cial Accountant for various companies, Mr Mogase moved to Nedbank where he worked as an analystlater moving to Relationship Management at the institute’s Corporate Banking division where he wasco-responsible for a portfolio of 1.5 billion rand. While at Nedbank, he was appointed to the leader-ship team and was seconded to Chase Manhattan in 1992 where he gained experience in corporate fi-nance, broker dealer and middle market operations. During this time, Mr Mogase was also involved inthe establishment of Real Africa Investments Limited (RAIL), one of the pioneering black empower-ment companies in South Africa. RAIL was an investment holding company with significant interestsin listed companies in the life insurance, investment banking, food and medical sectors.Mr Mogase was one of the five founding members of RAIL and was also appointed one of its non-exe-cutive directors.

Shepherd Muzamba Mr Shepherd Muzamba is a Senior Economist in the Financial Inclusion & Market Conduct unit of theNational Treasury, South Africa. He has been involved in the G-20 Financial Inclusion Experts Groupsince its inception in 2009. Prior to joining the National Treasury, he worked for the Methodology &Standards division of Statistics South Africa. Mr Muzamba has a BCom Accounting degree (Fort HareUniversity, SA), MCom Economics (Fort Hare) and MSc Finance & Economics (University of Manche-ster, UK).

Prof. Dr. Dr. h.c. Hermann SimonHermann Simon is Chairman of Simon-Kucher & Partners Strategy & Marketing Consultants with of-fices in Europe, Asia, Australia and North America. As an expert in strategy, marketing and pricing hehas an extensive global range of clients. Before committing himself entirely to management consulting, Simon was a Professor of business ad-ministration and marketing at the Universities of Mainz (1989-1995) and Bielefeld (1979-1989). Hewas also a visiting professor at Harvard Business School, Stanford, London Business School, INSEAD,Keio University in Tokyo and the Massachusetts Institute of Technology. From April 1995 to May 2009,he was CEO at Simon-Kucher & Partners. Professor Simon has published over 30 books, including Power Pricing (New York 1997), Manage forProfit, not for Market Share (Boston 2006), and most recently the worldwide bestsellers Hidden Cham-pions of the 21st Century (New York 2009) and Beat the Crisis (New York 2010). Simon is a member ofthe editorial boards of numerous business journals. He has been regularly writing columns for thebusiness monthly Manager Magazin since. As a board member of numerous foundations and corpora-tions, Professor Simon has gained substantial experience in corporate governance.


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A native of Germany, he studied economics and business administration at the universities of Bonnand Cologne. He received his doctorate from the University of Bonn. Simon holds an honorary docto-rate from the IECD Business School of Bled, Slovenia.

Elizabeth Wallace Elizabeth Wallace is Director and President of Frontier Finance International. She started her career inenvironment and energy. She worked on energy issues worldwide before turning her attention to fi-nancial sector development. Elizabeth established the European Bank for Reconstruction Develop-ment’s pioneering micro, small and medium enterprise (MSME) department where she oversaw overfive billion US dollars in financing and technical assistance for MSME programs. Subsequent to herwork at the EBRD, Ms Wallace moved to China to provide consulting services relating to MSME fi-nance and renewable energy in Africa, Asia and Latin America. She holds an MPhil from the Instituteof Development Studies, Sussex, and a PhD from the London School of Economics. She is based in Wa-shington DC, where she is currently president of Frontier Finance International (FFI), which focuses onaccess to finance issues and greening the financial sector.

Bruno Wenn Bruno Wenn is chairman of the Management Board of DEG. He joined KfW in 1982. His professionalcareer there has covered principal questions and promotional concepts in the special areas of socialand economic infrastructure and project management in South and East Asia. From 2000 to 2006, hewas Head of the Strategy Division at KfW Entwicklungsbank where he was in charge of corporate po-licy, principles and promotional concepts. From 2006 onwards, he headed the Division Financial Co-operation with Sub-Saharan Africa. He has been Chairman of the Management Board at the DEG inCologne since 2009.Bruno Wenn was born in Stolberg (Germany) in 1955. He studied economics at the Rheinische Fried-rich-Wilhelms University in Bonn (Germany) and completed subsequent post-graduate studies at theGerman Development Institute.

Stuart Yasgur Stuart Yasgur is a Managing Director at Ashoka, the largest network of leading social entrepreneurs.He is focused on establishing Venture Collaborative Entrepreneurship as Ashoka’s core process foridentifying and addressing the world’s most pressing issues. In this capacity, he is primarily engaged ingrowing Ashoka’s initiatives in Social Investment and Climate Change, Energy and the Environment.Earlier in his career, Mr Yasgur was the Managing Partner of a New York based consultancy and hasmore than a decade of experience working with start-up and growth-stage companies. He received hisBachelor’s degree from Cornell University, his Master’s from Columbia University and is completing hisPhD at the London School of Economics.


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Jerome YazbekSouth African born, Jerome Yazbek started his career in insurance working from 1974 to 1989 in the(insurance) sectors of industry, specialist engineering divisions, construction, risk management andspecialist products, He developed skills and a keen interest in the risk analysis of business develop-ment.In the years 1988 and 1989 Jerome Yazbek took a sabbatical to write a series of manuals focusing onpersonal motivation and development of entrepreneurial skills and the building of small medium en-terprises. Thereafter he worked as a consultant to various businesses, mainly in the insurance industryas well as assisting in the establishment of various businesses.In 2004, Jerome Yazbek was approached by a group of South African farmers to investigate and builda business model that would allow farming to become a profitable and sustainable endeavour. Withthis in mind, Jerome developed the Farmsecure Group to what it is today. Jerome Yazbek now acts asCEO for the Farmsecure Group.


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The DEG Conference on SME Finance

SMEs - powering the economy The developed and industrialized nations have long been aware of the importance of small and medium-sized enterprises (SMEs) to their economies.

SMEs are regionally focused and concentrate on local requirements. They are strongly interwoven with production in the areas in which they are based and linked to other upstream and downstreambusinesses.

This means that invested capital remains in the region and creates a multiple effect that also allows other SMEs to profit from it as it flows through the economy. The resulting expansion of localprocesses produces added value and creates markets for regionally sourced products and services.

As a result, national economies benefit from the creation of jobs and income which in turn results inhigher income from taxes.

Small is beautiful That is why a lot of industrialized nations have started to promote this segment of the economy. They have long since implemented property rights, contract law, creditor privileges and informationinfrastructures. And some of them also provide assistance with premises, finance and guidance fullyaware that new entrants to the market tend to be more productive and constitute a test bed for newways of doing business.

It is a fact that when the conditions are right and the appropriate frameworks have been set in place to nurture dynamic companies, SMEs will not only grow - they will continue to grow. They will increase in size and develop into larger companies. Larger companies in turn are again more productive and thus are able to deliver additional benefits to the overall economy.

The missing middle But the situation does not present itself as favourably in developing and emerging economies. Governments there tend to focus on larger firms while international aid is more inclined to chieflyconcentrate on micro-finance, i.e. projects that offer small credits to families and very small businesses.

But a healthy economy requires a healthy mix of businesses, which includes a thriving segment inwhich small and medium-sized companies may operate. The sector, for instance, has consistently reported reliable growth. A fact that is also due to its great employment potential. Governments, however, have been apt to overlook SMEs.


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Consequently, a ‘missing middle’ has emerged. Managers of businesses operating in developing andemerging economies, for example, frequently report that financing opportunities are not as availableto their businesses as they are to larger companies. It is estimated that less than 20% of small firms inlow-income countries have access to credit.

And to date, few scalable solutions to correct the situation by supporting this “missing middle” tier ofbusinesses have been implemented. Small and medium-sized enterprises are forced to rely on retainedearnings as banks and capital markets are more favourably predisposed towards big business.

The financing that is withheld from SMEs by the financial sector on the one hand and the earningsthat SMEs are forced to hold on to on the other constitute a double blow to the economy. The retained capital prevents developing and emerging countries from enjoying the benefits that a successful and prosperous SME segment has to offer.

DEG - a medium-sized enterprise for SMEs This is where DEG comes in. It finances and structures investments of private companies in developingand emerging economies. It invests in profitable and sustainable projects and provides consulting services to other companies intending to make similar investments.

Its stated aim is to contribute to lasting growth, to create permanent improvements to people’s livesand the conditions they live and work in.

DEG operates as a reliable partner to business. It focuses particularly on ensuring that its investmentsdeliver beneficial effects to developing countries. The declared intention is to achieve sustained economic growth over the long-term while creating social and economic justice and protecting theenvironment.

Its financings flow into all sectors. Agriculture, the service sector, private infrastructure projects andthe manufacturing industry all benefit from its work. And it also invests in the finance sector with theaim of creating reliable access to investment capital.

The new Market Place at the DEG Conference It’s against this backdrop that the conference is being staged. Political representatives, representativesfrom the private sector, e.g. financial institutions, trade, industry, as well as SME finance bodies andother institutions will be attending along with representatives from SMEs and other companies investing in developing and emerging economies.

For instance, Ms Gudrun Kopp, Parliamentary State Secretary to the Federal Minister for Economic


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Cooperation and Development; Dr Michael Klein, formerly Vice President and Chief Economist of theIFC, and representatives of the G-20 Financial Inclusion Experts Group will be participating.

Presentations will cover the areas of, for example, the role that SMEs play in the economy, will reportsuccessful support programmes, examine what development finance institutions are able to achieveand review financial products for assisting SMEs.

The conference, however, will not only be a venue for delegates to present their ideas and thoughts onSME finance. The goal is to establish a platform for all those concerned with development work -whether they operate on the public or the private sector - that enables them to come together andthat will deliver concrete benefits.

The new Market Place creates the opportunity for personal contact with innovators, donors and sponsors at the conference. To give participants an idea of the profitability of promising projects andto facilitate the transfer of know-how in work aimed at bringing about development.

Within this context, you will of course have the opportunity of meeting DEG’s qualified staff, who willbe happy to share their experiences in personal meetings. Experiences they have acquired as expertsto businesses investing in developing and emerging countries and know-how gained from makingsuch investments.

The G-20 SME Finance Challenge Presentation At their summit meeting in Pittsburgh, the G-20 countries decided that there was a necessity to concentrate on the problem of the ‘missing middle” and that solutions needed to be developed.

A decision was made to launch the SME Finance Challenge with an appeal to the private sector tosubmit ideas for new ways of employing public finance to generate more investment from private finance on a sustainable and scalable basis. The Challenge’s objective is to identify catalytic and well-targeted public interventions that would be able to release private finance for SMEs and findthose innovations that promised to be most successful. Once identified, the best schemes are to bescaled up and promoted to gain support for them from a broad range of private and public financeproviders.

The winners of the Challenge are not only invited to attend the G-20 Summit to be held in Korea inNovember 2010 as recognition of their innovative ideas, the winners will also be brought togetherwith donors and investors at the DEG’s SME conference that will be taking place in Germany shortlyafter the G-20’s summit in Korea.


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The G-20 will also work with the winners to implement their proposals. It has committed to help release the public share of the funding needed to realize the ideas. Many institutions, including theIFC and World Bank, among others, have promised to support scalable and sustainable proposalsaimed at financing SMEs in partnership with the private sector.

The critical mass of change It is hoped that the coming together of so many key figures and ideas in the world of SME finance, investment and consulting will produce important developments for the sector and that new impetuswill be imparted to the field of SME support.


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The DEG in profile

Business by DEG DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, member of KfW Bankengruppe (KfW Banking Group), was founded in 1962. It was established for the purposes of promoting privatebusiness structures that are able to facilitate sustainable growth and help improve living conditions in developing and emerging economies. It does so by financing private companies and supporting promising entrepreneurial initiative.

Entrepreneurial development cooperation is an important part of development policy: successful,long-term viable private enterprises generate economic growth in the partner countries. They createjobs and income, contribute to improving the countries’ foreign exchange balance by producing competitive products, contribute to government revenues by their tax payments and increase nationalvalue added by processing local resources.

For this purpose, DEG almost exclusively uses own resources rather than public budget funds. It is in the strong position of being able to operate as an independent commercial entity on the privatesector. Therefore its choices concerning which businesses to finance are always based on sound business judgements. However, the decisive frame of DEG’s work form its developmental mandate andits guidelines for social and environmental sustainability: DEG only takes on commitments in projectsthat make an effective development policy impact, meet environmental standards and comply withsocial principles.

Small business - big impact The goals DEG has set itself constitute a tall order. Particularly for a company with a workforce of just418 employees, which - by some definitions - means that DEG may itself be regarded as a medium-sized business. But it is an order that DEG approaches with its own established and dynamic mindsetof a medium-sized enterprise.

From its small beginnings, DEG has become one of the largest development finance institutions inEurope. Its equity - built on profits generated from its investments over the years - today amounts to1.34 billion euros and the income statement surpasses the three billion-euro mark. To date, DEG hascooperated with over 1,500 companies and - in 2009 alone - committed more than one billion eurosto private companies in developing and emerging market countries.

Partner to SMEs DEG operates as the partner to private business. Its experience places it in the unique position of notonly being able to provide finance to SMEs but also to accompany them throughout the life span of


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their specific projects. It works with its partners in the SME segment to create joint solutions that aretailored to the respective investments. And even in difficult times - for instance, the recent financialcrisis - DEG remains a reliable and experienced partner that stands by its customers.

The solutions that DEG develops are adapted to the relevant risks to ensure that its commitments succeed and remain profitable over the long-term. Accordingly, the products it offers private companiesand financial institutions wishing to invest in SMEs reflect the scope of financing tools. These products,for instance, can always be variably structured and loans may be granted on the basis of the strengthsof the individual project in question.

DEG has been a valuable partner to private partners for over 48 years - thus making its experience allthe more relevant to the topic of SME finance.


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Links

We’ve put together some interesting links with additional information for you here.

About the DEG and its mission http://www.deginvest.de/EN_Home/About_DEG/index.jsp

http://www.deginvest.de/EN_Home/About_DEG/Profile/index.jsp

http://www.deginvest.de/EN_Home/About_DEG/Our_Mandate/Development_Policy_Mandate/Corporate-Policy_Project_Rating_.jsp

About the G-20 SME Finance Challenge http://www.deginvest.de/EN_Home/About_DEG/Our_Current_Work/G-20_SME_Finance_Challenge.jsp

http://www.changemakers.com/en-us/SME-Finance

http://www.bmz.de/de/presse/aktuelleMeldungen/2010/juni/20100627_g20/index.html

http://www.whitehouse.gov/blog/2010/07/22/sme-finance-challenge-supporting-small-businesses-big-engines-growth

http://www.g20.org/


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Participants

Last Name First Name Organization CountryAbinader Jose Universidad Dominicana O&M Dominican Republic

Ahmed Khaleel B. International Finance Corporation (IFC) USA

Ahmed Fahim SEAF Bangladesh Ventures Bangladesh

Al-Aboodi Khaled Islamic Corporation for the Development Saudi Arabiaof the Private Sector

Anderson Madeleine Equity for Africa United Kingdom

Andrews Mike Barefoot Power United Kingdom

Armbruster Paul Deutscher Genossenschafts-und Raiffeisenverband e.V. Germany(DGRV)

Bakay Elena AFC Consultants International GmbH Germany

Balkenhol Bernd ILO - International Labour Organization Switzerland

Bänsch Thomas AGEF gGmbH Germany

Beadle Sibel European Bank for Reconstruction and Development (EBRD) United Kingdom

Beck Monika KfW Bankengruppe Germany

Berg Dirk German Federal Ministry of Economics and Technology Germany

Berndt Markus European Investment Bank (EIB) Luxembourg

Bernhard Axel KfW Bankengruppe Germany

Bihler Anna KfW Bankengruppe Germany

Blanke Stephan DEG Germany

Blomberg Björn Swedfund International Sweden

Bögemann- Christiane German Federal Ministry forEconomic Cooperation GermanyHagedorn and Development (BMZ)

Böing Claudia DEG Germany

Bollen Jerónimo Root Capital Costa Rica

Bornmann Dr. Michael DEG Germany

Bortes Cristina Nathan EME United Kingdom

Boufaied Lamia FIPA Tunisia Germany

Braun Anette German Federal Ministry for Economic Cooperation GermanyandDevelopment (BMZ)

Buecker Wolfgang Deutsche Gesellschaft für Technische Zusammenarbeit Germany(GTZ) GmbH

Burke Jeremy CDC Group PLC United Kingdom

Chatterji Subhrendu GEM Group United Kingdom

Chavarria Federico Banco Promerica de Costa Rica Costa Rica

Chiha Abdelaziz FIPA Tunisia Germany

Denfeld Bianca KfW Bankengruppe Germany


19

DiDonna Dennis J. Entrepreneurial Finance Lab (EFL) South Africa

Dodge Gary SEAF - Small Enterprise Assistance Funds USA

Dolfing Monique Medical Credit fund The Netherlands

Dorasil Susanne German Federal Ministry for Economic Cooperation Germanyand Development (BMZ)

Dreyer Bertram DEG Germany

Duyverman Steven FMO The Netherlands

Echeazu Emeka UBA - United Bank for Africa Nigeria

Ekra Jean-Louis African Export-Import Bank (Afreximbank) Egypt

Flosbach Franz-Josef DEG Germany

Foerch Thomas Deutsche Gesellschaft für Technische Zusammenarbeit Germany(GTZ) GmbH

Gabener Christina DEG Germany

Gacic Ana Komercijalna banka a.d. Beograd Serbia

Gerber Rolf DEG Germany

Gerig Ragnar DEG Germany

Geurtsen Arjan FMO The Netherlands

Gill Catherine Root Capital USA

Grewe Christpher U.S. Treasury USA

Grossmann Christian International Finance Corporation (IFC) USA

Grunwald Rolf DEG Germany

Hebgen Hans-Joachim DEG Germany

Heil Klaus DEG Germany

Hodson Simon Aga Khan Fund for Economic Development (AKFED) Switzerland

Holt Jennifer Peace Dividend Trust USA

Hruschka Stefan Asian Development Bank The Philippines

Jacobsen Lenz Weitwinkel Journalistenbüro Germany

Jessen Hans ARD Germany

Keizer Cily BiD Network Foundation The Netherlands

Kessler Thomas DEG Germany

Klein Michael

Knipper Marita Westdeutscher Rundfunk Germany

Kohler Jürg responsAbility Social Investments AG Switzerland

Kopp Gudrun German Federal Ministry for Economic Cooperation Germanyand Development (BMZ)

Koskelo Jyrki International Finance Corporation (IFC) USA

Krämer Gregor Alanus University of Arts and Social Sciences Germany

Kreiß Constanze KfW Bankengruppe Germany

Last Name First Name Organization Country


20

Kreutz Philipp DEG Germany

Laude André International Finance Corporation (IFC) France

Lee Nancy U.S. Treasury USA

Lefting Elvira Finance in Motion GmbH Germany

Leifheit Maren Alliance for Financial Inclusion (AFI) Germany

Lenze Oliver DEG Germany

Llavona Jose Universidad Dominicana O&M Dominican Republic

Lyman Timothy CGAP USA

Marques Manuela DEG Germany

Maus Wilfried Germany Trade and Invest Germany

M'Baye Thiam West African Development Bank (BOAD) Togo

Meier Olaf ADC African Development Corporation Germany

Meier-Ewert Hans W. Afrika-Verein der deutschen Wirtschaft e.V. Germany

Meister Florian Finance in Motion GmbH Germany

Michelitsch Roland International Finance Corporation (IFC) USA

Mishra Maheswar Department for International Development (DFID) United Kingdom

Mogase Mutle Vantage Capital Group South Africa

Mokaddem Leila African Development Bank Tunisia

Morjaria Raj Aureos Capital United Kingdom

Musomba Jayne Primefuels Companies Kenya

Muzamba Shepherd National Treasury, South Africa South Africa

Narasimham Radhakrishna Asian Development Bank The Philippines

Nguyen Van Kim German Federal Ministry for Economic Cooperation Germanyand Development (BMZ)

Odenbach Mark Barefoot Power Germany

Onate Andrea International Finance Corporation (IFC) USA

Overbeck Klaus DEG Germany

Petrovicova Zuzana European Commission, DG ECFIN Luxembourg

Pikholz Lynn CapitalPlus Exchange Corporation USA

Plettenberg Hubertus Graf von DEG Germany

Polan James OPIC Overseas Private Investment Corporation USA

Putscher Nikolai German Federal Ministry of Finance Germany

Raab Udo Stefan Standard Bank Germany

Ragab Assem FACT – Financial Advice Corporate Transactions Egypt

Raine Gillian FirstRand Bank South Africa

Reed Steven Inter-American Investment Corporation USA

Retter Ralf German Federal Ministry for Economic Cooperation Germanyand Development (BMZ)



21

Rinsche Cordula DEG Germany

Rittmann Heinz Baugewerbliche Verbände Germany

Roos Aaltje de Ministry of Foreign Affairs, the Netherlands The Netherlands

Rosen Harold Grassroots Business Fund USA

Rosenberg Jörn German Federal Foreign Office Germany

Rothenbusch Holger DEG Germany

Sarfaraz Tariq Ahmad Ruhr University Bochum Germany

Schellekens Onno Medical Credit Fund The Netherlands

Schemionek Christoph RGIT - Representative of German Industry and Trade USA

Schenk Monika KfW IPEX-Bank GmbH Germany

Schlink Torsten Deutsche Gesellschaft für Technische Zusammenarbeit Germany(GTZ) GmbH

Schneider Alois German Federal Ministry for Economic Cooperation Germanyand Development (BMZ)

Schott Hendrik Naspers Media Ltd. / Foreign Press Association Germany

Schraven Jorim FMO The Netherlands

Schreiver Claus German Federal Ministry for Economic Cooperation Germanyand Development (BMZ)

Schumacher Joachim DEG Germany

Schütte Haje KfW Bankengruppe Germany

Seidel Peter Kölner Stadt-Anzeiger Germany

Shersingh Namgial Small Industries Development Bank of India India

Sinha Madhukar Aavishkaar Venture Management India

Sserunkuma Christopher DFCU Bank Ltd Uganda

Steffens Udo Frankfurt School of Finance & Management Germany

Stein Peer International Finance Organization (IFC) India

Suhany Steffen DEG Germany

Teima Ghada International Finance Organization (IFC) USA

Terberger Eva KfW Bankengruppe Germany

Timm Gudrun DEG Germany

Timmerman Michiel Equity for Africa United Kingdom

Tiskens Christoph KfW Bankengruppe Germany

Urheim Kristoffer Beer Norfund – Norwegian Investment Fund for KenyaDeveloping Countries

van den Brock Peter Pax-Bank eG Germany

van der Krogt Peter Capital Tool Company The Netherlands

Van Mossel Annemarie BiD Network Foundation The Netherlands

van Wees Ingrid DEG Germany



22

Veit Wolfgang Cologne University of Applied Sciences / Fac.04 Germany

Verbraeken Simone Belgian Investment Company for Developing Countries – BIO Belgium

Vitinius Justus DEG Germany

Vollmann Michael Ashoka Germany

von Bismarck Klaus AMS / Brewtech Hamburg Germany

von Kameke Jochen European Investment Bank (EIB) Luxembourg

von Krockow Alexandra CforC Group United Kingdom

von Werthern Gerhard DEG Germany

Vysokov Vasily V. Center-invest Bank Russia

Wallace Elizabeth Frontier Finance International USA

Wallenius Tapio Finnfund Finland

Weinfurtner Karl DEG Germany

Welter Heike Cologne Office of Business Development Germany

Wenn Bruno DEG Germany

Wilde Martin J. Bund Katholischer Unternehmer e.V. (BKU) Germany

Winzer Melanie KfW IPEX-Bank GmbH Germany

Wisniwski Sylvia Finance in Motion GmbH Germany

Wülker-Mirbach Margitta Bundesministerium für Wirtschaft und Technologie Germany

Yasgur Stuart Ashoka USA

Yazbek Jerome Farmsecure Capital (Pty.) Ltd South Africa

Zegers Robert African Development Bank Tunisia


Documents

Content - DEG: Mehr als Finanzierung · SME – entrepreneurship at its best ... Prior to this assignment, Mr Koskelo was Vice President, Europe, Central Asia, Latin America and the