Design and Management of CGFs
The core services offered by LANDT are the design, implementation and management of CGFs tailored to meet specific needs and financial goals in even in the most challenging contexts.
Importance of CGF Design
LANDT’s philosophy is that CGFs should be designed as market-friendly interventions, serving the needs of MSMEs and bringing value to financial institutions. Based on extensive and country-specific market analysis LANDT is able to design CGFs that are well-positioned to deliver a substantive impact to MSMEs, PFIs and the economy of the host country.
Benefits of CGFs
Micro, Small & Medium Enterprises
- Easier access to financing through the substitution of collateral and the mitigation of risks for appropriate businesses
- Loan sizes and conditions appropriate to the need & repayment capacity of borrowing businesses
- Realizing the growth potential of revenues, earnings and the recruitment of new employees
Partner Financial Institutions
- Expansion to previously inaccessible target groups
- Innovation in financial services & focus on customer needs
- Guarantees serve as external collateral substitution
- Risk sharing through credit guarantees allows for the mitigation of the objective & subjective risk perceptions that are salient to PFIs
Macroeconomic Growth
- Private sector development
- Supporting employment for the local population
- Counterbalancing economic and security challenges
- Strengthening trade, production and access to local & global markets