Background

FSD is a financial sector development program support the development of inclusive financial markets in Kenya. Their work ranges from direct investment in market innovations to research and policy analysis. StratLink has been engaged by FSD twice to provide a detailed analysis and independent investment opinion in support of socially oriented, commercial investments.

Approach

StratLink undertook and in-depth financial due diligence investigation of the fund’s finances and its ability to deploy capital while generating impact throughout Africa.

This also included a detailed analysis of key sectors (micro-lending, agriculture, technology, healthcare, renewable energy, and mortgage lending) of 13 different developing and Fragile, Conflict Affected States (FCAS) countries across Africa to determine investment the potential for investment by the fund.

StratLink prepared a detailed (100+ page) report that was shared with FSD’s investment committee, which helped lead to the eventual investment into the fund.  

Outcome

The first engagement led to the successful investment by FSD Africa into the African Local Currency Bond Fund. This was paired alongside additional funds to be deployed to the fund’s Technical Assistance Facility (which aims to promote capital market development across East Africa).

The second engagement was of a similar nature, but entailed a detailed DD process on a technology based micro-lender in Kenya. This included an in-depth market analysis alongside a detailed financial investigation into the firm. StratLink provided a detailed report to FSD to be used in the support of IC evaluations.