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Social Merchant Bank |
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S3IDF has two mission objectives: |
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To employ its Social Merchant Bank approach in South India by building a portfolio of pro-poor, pro-environment, financially viable small-scale infrastructure and related productive-use investments and enterprises, and
Based on its experience, to disseminate its approach so that philanthropic and development capital is effectively leveraged by local commercial capital co-financing. |
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As a Social Merchant Bank, S3IDF provides integrated and ongoing business development, financial and technical support to enterprises and projects supplying pro-poor and environment-friendly infrastructure services. By working locally and providing bundled services, S3IDF’s goal is not only to solve the infrastructure problem but to do so in a way that leads to healthier and more self-reliant communities. The salient features of the model are: |
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Multiple benefits to poor communities: where poor are the multiple stakeholders as users, Small & Medium Enterprises (SME) employees & even SME owners - of these pro-poor, environmental-friendly and financially sustainable enterprises. The poor also benefit because of access to infrastructure like energy, lighting , water, transportation etc. made available through these enterprises |
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Financial viability: The enterprises mentored/incubated by S3IDF are financially viable and completely recover all their operational costs and, to some extent, their capital costs too. |
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Leverage: S3IDF encourages participation by local Financial Institutions in these projects - which were otherwise non-bankable – through innovative financing mechanisms (debt, equity, partial guarantees, margin money financing..) |
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Partnering and linkage approaches: S3IDF works extensively with local NGOs and other similar groups, including government agencies, technology providers/ equipment suppliers as well as financial institutions. Through these partnerships, S3IDF provides financing, technology know-how and capacity building assistance to small, pro-poor projects and enterprises. |
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High degree of replicability: for similar communities with similar financial and technology access problems. Monitoring and evaluation and lessons dissemination efforts are geared to induce “big players” like Governments, multilateral/ bilateral agencies and so on to support such projects and adopt such methodologies which can be incredibly cost-effective in poverty alleviation and environmental benefits. |
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