Beruflich Dokumente
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and medium-sized enterprises in Africa and Latin America by providing share capital. Objectives:
10-15 sustainable investments in new and existing medium-sized companies
an average ROI of 11% in EUR
promoting the development of the private sector in a way that helps tackle poverty
Selection criteria
Applications from companies are assessed based on the following criteria:
Economic sustainability: is the company profitable in the long term?
o Market: is there a clearly-defined market with sufficient depth, significant growth potential
and good access? Does the market yield good margins? Is there a clear marketing strategy?
o Competitiveness: how strong is the company's competitive position? Does it deliver better
quality or a unique product at a fair price?
o Added value: does the company have a clear position in the value chain and does it provide
added value for other companies in the chain?
o Profitability: can the company be profitable within a few years? By when will the company be
profitable and will there be a positive cash flow?
o Risks: are the commercial and financial risks limited and manageable?
Impact on poverty:
o Number of involved parties: how many people can realise a higher income thanks to the
company? Are these employees or suppliers?
o Individual impact: to what extent does the income per individual improve?
o Are there any exceptionally poor and vulnerable groups involved, such as women, children,
landless people or ethnic minorities?
o Empowerment: does it help the poor gain more power and control over their lives? Are the
skills and knowledge of these groups structurally improved through training and education,
as a result of which their chances in society are structurally improved? Can they acquire
control over assets, such as land, or become co-owners of the company?
Impact on the environment:
o Does the company contribute to nature conservation such as the protection of biodiversity,
animal species, plants, fresh water sources and forests or to driving back pollution?
o Is there question of CO2 storage or emission-reducing measures?
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o Do the company’s activities have a negative impact on the environment?
Feasibility of the plan:
o Are there customers or traders who have shown real interest and are there long-term
contracts?
o Have small producers / suppliers been organised and are they reliable partners?
o Is cooperation possible with organisations which could assist in the training of personnel,
farmers and/or other suppliers?
o Is the local investment climate positive? Do local governments support the plan?
Is ownership recognised by the state?
o Are there sufficient natural resources for large-scale production?
o Does the company have knowledge of the required technologies and machines and have these
been tested and found suitable for the local conditions (easy to operate and repair)?
o Do the entrepreneurs have experience and training with regard to the product, region and
sector?
o Are there employees available who are already trained?
Availability of capital and financial performances:
o Have all shareholders invested equity capital or are they prepared to do so?
o Are other companies from the chain (buyers or suppliers) prepared to co-invest?
o Are there other investors who are prepared to invest, such as banks, NGOs and investment
funds?
o Is the current debt rate limited and acceptable?
o Is Annona being offered sufficient ownership and authority?
Scalability:
o Is an investment of EUR 300,000 to 800,000 necessary?
o Will the market and availability of raw materials and labour be sufficient to expand quickly?
o Is the business concept easily extendable to other regions and countries, or other product
groups?