In Pioneers Post, Krisztina Tora, Managing Director of GSG Impact, shares findings from GSG Impact’s report A New Lens on SME Mobilisation, which was launched at the FFD4 conference in Seville.

The report shows that development finance institutions (DFIs) alone cannot bridge the US$8 trillion global SME finance gap.

"It is increasingly clear that the scale of the challenge dwarfs the financial firepower of DFIs. Instead, DFIs’ greatest strength may lie in their ability to catalyse other capital,” says Krisztina Tora, GSG Impact.

This report introduces secondary mobilisation, domestic capital that flows after DFIs invest, such as local banks and pension funds stepping in.

Examples in the article include:

• Kenya’s KCB Bank expanded SME loans from US$4 million to US$900 million in six years, backed by US$265 million in DFI financing and technical assistance.

• Investisseurs & Partenaires in West Africa achieved a 6.3x leverage ratio by attracting local investors beyond initial funding.

• Mexico’s Fondo de Fondos, following initial DFI support, has mobilised US$1.6 billion, supported 1,400 companies, and created 740,000 jobs, mainly through domestic pension funds.

Read the full article on Pioneers Post to explore these strategies in detail.