Professional Documents
Culture Documents
Lack of access to financing is consistently cited by Small and Medium Enterprises (SMEs) as
one of the main barriers to growth. With such limited access to financing, SME owners
struggle to make the investments they need to increase productivity and competitiveness of
their business, develop new markets, and hire more people. This is particularly true in
African countries.
Verde Ventures has seen that there is a substantial SME investment market potential in
Africa which overlaps with CI’s conservation priorities. The existence of this “missing
middle”, unserved by either microfinance institutions or large financial institutions, is a
significant challenge for SME’s seeking to grow responsibly particularly in Africa. Given the
importance of the SME sector as a driver of growth and employment, as well as a large
unserved need in this sector in Africa, VV has developed an aggressive Africa.
We very are grateful to both Agence Française de Développement (AFD) and Fonds Français
pour l'Environnement Mondial (FFEM) for their continued support and the opportunity to
expand our services to this critical continent.
Pre-Selection Criteria
To be eligible for support from Verde Ventures, the enterprise must be a Small or Medium
sized enterprise in Africa and involved in a business that benefits biodiversity conservation
and human well-being.
Enterprise Eligibility:
All projects must adhere to the following minimum criteria to be eligible for Verde-
Ventures’ financing:
Make a direct contribution to our priorities, particularly in addressing climate
security, freshwater security and food security (see www.conservation.org for more
information)
2
Have a strong management team
Demonstrate commitment to and participation of a local community
Have total business assets less than $5 million during the investment period
Demonstrate sufficient cash flow or growth potential to repay the investment within
three-five years
Demonstrate capacity to repay the investment in US dollars, despite local currency
fluctuations
Be able and committed to monitor changes in biodiversity during the life of the
investment
While VV has traditionally focused its efforts on two primary sectors: sustainable agriculture
(coffee and cocoa) and tourism, VV’s new approach will include investment in businesses
that develop and promote higher efficiency energy options and / or low-carbon energy
3
options in rural Africa. Enterprises that address charcoal and fossil fuel efficiency and / or
substitution are of particular interest.
Submission Deadline
June 30th 2010
Use of Funds
Verde Ventures loan funds can be used by an enterprise for key areas of business
development such as:
working capital
inventory purchases
infrastructure enhancements
reforestation
training and capacity building
plant and equipment purchases
land purchase
The use of funds must be directly related to the project's business plan. Each prospective
applicant will need to demonstrate how funding will contribute to the business' ability to
directly support biodiversity conservation and human wellbeing.
In order to apply, please complete the included Letter of Interest and submit it to us at
verdeventures@conservation.org.
4
Verde ventures
Letter of Enquiry Template
Thank you very much for your correspondence and your interest in Verde Ventures.
The mission of Verde Ventures, as part of Conservation International, is conservation of biodiversity through
investment in conservation-oriented small and medium sized enterprises. Investments range between
US$30,000 and US$500,000 and are in the form of loans with a payback period that varies between three to
five years. Therefore, all projects that we evaluate need to show us financial projections that demonstrate
that the business will have sufficient cash flow to operate and repay debt and interest within this timeframe.
The first step in the application process is to send a Letter of Inquiry to verdeventures@conservation.org with the
following information:
COMPANY INFORMATION
Company Name
Date
GPS Coordinates
(if available )
1. Description of business, including the specific location of business operations (include country,
nearest town and nearest protected area, if available).
5
4. Detailed description of how the enterprise supports ecosystem health, biodiversity conservation, the
local community and human wellbeing
Again, thank you very much for your interest in Verde Ventures and we look forward to receiving your
proposal. Once we receive your proposal we can evaluate whether your project fits within our funding
priorities and contact you for additional information.
For more information about Verde Ventures please visit our website:
http://www.conservation.org/verdeventures
Sincerely,
Verde Ventures
Conservation International