Equity
Promoting fairness and justice
Endeavour to protect human dignity
Transparency
Honest communication and accountability
Social innovation
Strategies addressing social challenges
Backbone is an asset manager specializing in financing unlisted SMEs through debt,
with a social impact objective.
The investment strategy is to improve access for the population in need to essential products and services, in developing and emerging countries, with a focus on 4 sectors :
Food supply
- Farming
- Distributions
- Agri-business
Education
- Schools
- E-learning solutions
- School supplies
Medical care
- Private clinics
- Medical equipments
- Healthcare centers
- Drugs distribution
- Micro-insurance
Community services and social inclusion
- Social housing
- Mobility solutions
- Renewable energy
"Financing SMEs, Serving Mankind"
The SME segment, many of which are family-owned, contributes significantly to the supply of essential goods and services.
As implied by the principle of subsidiarity, small to medium-sized entities provide the strongest foundation for human fulfilment and talent development.
These companies generate their income locally.
They are not owned by foreign shareholders.
They are the framework and the "backbone" that support the local economy and the maintenance of services to the population.
To contribute to the development and protection of human dignity, BACKBONE lends to SMEs and clinics
The SME-market opportunity
Improve access to goods and services in domestic markets
• Essential products and services are often unavailable or difficult to access in developing countries. Mainly focused on domestic markets, SMEs are trying to fill these market gaps.
• SMEs cater for a wide variety of local needs, many of which are essential, such as water, health, housing, education, energy, etc. all which represents significant market potential.
Provide growth potential good above average
• SMEs often suffer from low return and face major obstacles to growth, but well-funded and accompanied, SMEs have a strong growth potential.
• Demographics of working population in low and middle-income countries shows highest growth in the world, driving demand for SME financial services
The ‘virtuous circle’ of community investing
Backbone adresses the lack of access to essential services by supporting local SMEs
Building and structuring the fabric of local livelihoods
• SMEs are generally created and managed by local entrepreneurs, thus stimulating local growth, livelihoods and community development
• SMEs typically source locally and help to structure local value chains
Create stable and decent jobs
Formal SMEs are the pillars of job creation in emerging countries:
• Formal jobs offer higher wages than informal ones for the same work
(e.g. 50% to 60% higher as observed in Ghana and Tanzania)
• Formal jobs are safer, provide access to training and social security.
• A regular private income allows families to anticipate the future, save,
thus improve its access to credit, housing and education.
Our investments solutions
Backbone offers financing solutions in the form of loans between 50,000 and 350,000 EUR to SMEs.
The purpose of the investments is to meet the usual financing needs, including working capital (credit facility) as well as the acquisition of fixed assets (asset-based loan).
Geographical area of our investments
Backbone invests in Africa and Latin America. Targeted countries are developing and emerging ones with a favorable environment for the development of the SME network.
An innovative model of risk-sharing with our local partners
Backbone attempts to provide a solution by providing credits whose financial risk is shared with local financial institutions. The co-financing operations are the added value brought by Backbone compared to other players in SME-lending.
The main characteristic of the partnerships developed by Backbone is to be able to compose a portfolio of SMEs or to build a “tailor-made” investment strategy, according to a specific objective: supporting economic development in a particular business area or region.
This model guarantees the correct allocation and traceability of funds. In this way, Backbone aims to boost the local economy, with an offer that supplements microfinance services, which is already helping the local economy on a smaller scale.