Feasibility Study on a Credit Guarantee Fund in DR Congo
Area of Operation: Democratic Republic of Congo
Duration of Assignment: April 2020 – September 2020
Name of Client: KfW Development Bank
Project Description:
The DRC feasibility project aimed to prepare a feasibility study with the objective to carry out a market analysis as a prerequisite to develop a feasible program concept for the establishment of a Credit Guarantee Fund (CGF) in DR Congo, including a detailed description of the proposed institutional set-up and the organizational and functional structure. The study was carried out in two phases. At the end of Phase I (market analysis), KfW in coordination with other stakeholders decided to proceed with Phase II (assessment of CGF institutional setup options).
Our Services:
- Advised and facilitated the programme design process and testing of programme options.
- In-depth analysis of DRC’s regulatory framework in coordination with the legal advisor.
- Developed core user requirements of the MIS and definition of the main components.
- Oversight of Enterprise Risk Management core policies development.
- Developed a financial model determining the outlook for achieving sustainability.
- Estimation of the required capital for the CGF, cost structures and start up financing.
- Estimation of portfolio evolution and support in strategizing the capital usage and plan for fundraising and counter guarantees.
- Prepared forward-looking strategy including expect capital usage, plans for fundraising and counter guarantees.
- Developed core areas of ERM.
- Researched and identified PFIs, PEAs and Donors/DFIs (with CGF experience).
Identified partner financial institutions (PFIs) TA needs.