The document outlines a framework to impact the unbanked through inclusive development, regional integration, and impact investing. It recommends growing infrastructure and agriculture to kickstart inclusive development. Regional integration could foster trade and larger markets. Impact investing could scale business models to create bigger social impact by bringing billions from new investors. Two case studies show challenges addressed through innovations with significant impacts: a fund harvesting gum Arabic in Mali created jobs and payments to farmers; a social impact bond in Pakistan developed affordable housing providing homes for over 6,000 people.

1. Impact The Unbanked
ISSAM CHLEUH
19.6.14
Calabar, Nigeria.

2. Outline.
Design a Value Proposition to impact the unbanked
I. Framework
II. Recommendations
1. Inclusive Development
2. Regional Integration
3. Impact Investing
III. Case Studies

3. Framework.
IMPACT
INNOVATION
CHALLENGE
- Proven Business Model (SWOT)
- Partnerships / Financing (PPP, etc.)
- Scale
- Regular Evaluation & Problem Solving
- Track Capital Invested/ Impact Ratio
- Standardize Impact Measurements
- National - Regional – Sector
- Base Year: Financial & Social Data
- Cross-Cutting Solutions areas

4. Challenges.
Inclusive
Development
• Social Justice
• Political Stability
• Economic Growth
• Human development
Infrastructure
• Energy
• Transport
• Communication
• Water
• Regional
Infrastructure
SMEs
• Access to Finance
• Capacity Building
• Technical
Development
• Business Support
Services
Framework Recommendations Case Studies

5. Inclusive Development.
 Growth kick-started by Infrastructure & Agriculture
 Responsible Natural Resources Revenue Management: REINVEST IN SUSTAINABLE INDUSTRIES
 Innovative Approach to Education, Health and ICT: PPP, INNOVATIVE PARTNERSHIPS/FINANCING
 Improve Governance: TECHNICAL ASSISTANCE, TRANSPARENCY & ACCOUNTABILITY
 Benefits:
 Participation of The Poor in Economic Growth
 Tackle Human Development alongside Economic Growth
 Challenges:
 Opportunity Cost
 Competitive Advantage
Framework Recommendations Case Studies

6. Regional Integration.
 Foster Trade Regionally in Africa
 Deepening and Broadening Economic ties (S.E.Z.)
 Creation of a Regulatory & Policy Environment
 Benefits:
 Larger Markets
 More Specialization in Products and Services
 Increase Global Competitiveness
 Boost in FDI
 Challenges:
 High Poverty Level in LICs
 Negative Impacts of Integration/ Trade Liberalization
Framework Recommendations Case Studies

7. Impact Investing.
 Asset Class (2010, JP Morgan Report) just like Private Equity & Bonds
 Origin: Developmental Finance, Private Equity, Social Entrepreneurship
 New players in fight against poverty: Wall Street, Private Investors, Corporations
 Create innovative business models and companies to address issues
 Impact Reporting & Investment Standards (IRIS) - 2008
 Benefits:
 Global Standardization of Social Impact Accounting
 Scaling of Business Model = Bigger Social Impact
 New players bringing $Billions in the poverty reduction fight
 Challenges:
 Immature Industry
 Risk Averse Investors
 Tradeoff between Financial Return and Social/ Environmental Impact
Framework Recommendations Case Studies

8. Case Study 1. Impact Investing Fund
Challenge Innovation Impact
 Deforestation/
Drought
 Political Unrest
 Unemployment
 Extreme Poverty
 Traditionally, Gum
Arabic Trees only
used for Local
Traditional Medicines
 Penetrated
European Market
 Pharmaceuticals,
Cosmetics & Food
ingredients
 Secured contracts
with international
buyers
 Boosted Malian
agriculture
 2,500 Jobs (2010)
 30 Jobs (2008)
 Payments to
farmers:
- $1 million (2012)
- $17,000 (2008)
 Reversed Rural
Exodus
Company: PRODUITS DU SUD - Harvest Gum Arabic Resins in Mali and Sell them Internation
Investor: Root Capital – invest in Farmers in Africa/South America and lobby for access to mark
Framework Recommendations Case Studies
Challenge Innovation Impact
 Deforestation/
Drought
 Political Unrest
 Unemployment
 Extreme Poverty
 Traditionally, Gum
Arabic Trees only
used for Local
Traditional Medicines
 Penetrated
European Market
 Pharmaceuticals,
Cosmetics & Food
Ingredients
 Secured Contracts
with International
Buyers
 Boosted Malian
agriculture
 2,500 Jobs (2010)
 30 Jobs (2008)
 Payments to
farmers:
- $1 million (2012)
- $17,000 (2008)
 Reversed Rural
Exodus

9. Case Study 2. Social Impact Bond (S.I.B.)
Challenge Innovation Impact
 Poverty Pakistan:
50%
 Housing Shortage:
6m Houses
 No Legal Title to
Land:
- No Economic
Collateral
- No Credit
Markets
 Low-cost Housing
Develpment ad
Management Company
 Targets Pakistani who
earn $81-$162 per
month
 Developed 36
Commercial & 1,000
Residential Plots
 Provided Home >
6,000 people
 Scale across
Pakistan & become
Global Leader
Social Impact Bond (B.I.B.) are also called Pay for Success Bond.
> Governments pay investors only if program works
> Pressure is on Intermediary to monitor Nonprofit programs and impact
Framework Recommendations Case Studies

10.  Inclusiveness
 Innovation
 Impact
Key Takeaways