[ ECONOMY ] INVESTMENT | Infrastructure | Megacities | Digital Assets & Currencies | Markets
IN UZBEKISTAN , BILLZ HELPS MSMES DIGITISE AND ACCESS WORKING CAPITAL
Problem : Contributing to 78 % of the workforce and 60 % of GDP , Uzbekistan ' s micro- , small and medium enterprises ( MSMEs ) grapple with operational inefficiencies and limited access to financial products . Challenges include perceived risks , lack of collateral , and insufficient digital adoption , with 83 % of MSMEs lacking access to digital tools .
Solution : Billz is an all-in-one retail management software that serves as a comprehensive solution to the challenges faced by MSMEs . Their software supports the digital transformation of offline stores and enables MSMEs to access working capital loans to grow their business .
Company results : As of June 2024 , the company had empowered over 1,800 MS- MEs in retail locations across Central Asia . The platform had generated over $ 73 million in revenue for its customers , putting them on track to achieve an annualised customer turnover of more than $ 800 million . By producing over 10,000 educational resources , Billz enabled 76 % of its clients to adopt a digital tool for the first time . Digitalisation not only offers a path to formality but can also equip MSMEs with greater access to global markets and reach to customers . It improves the productivity , competitiveness , and profitability of the MSME sector , thereby stimulating economic growth and job creation .
Sturgeon Capital ’ s support : The fund injected $ 300,000 into Billz in 2022 . It also helped the company partner with a financial institution to leverage collected data and facilitate 250 collateral-free loans worth over $ 7 million to date .
IMPACT INVESTING IN FRONTIER AND EMERGING MARKETS
Frontier and emerging markets ( FEMs ) offer a unique mix of challenges and opportunities , with less mature and stable financial markets , and uncertainties related to the currency , market , political situations and regulatory environments . However , when investors collaborate with local partners , leverage local expertise and implement robust risk management strategies , impact investing in FEMs has the potential to generate higher impact and financial returns than in developed markets .
Compared with developed countries , FEMs typically face , on average , higher levels of poverty , inequality , and less rigorous environmental regulations . These problems are reflected in indicators such as the Human Development Index ( HDI ), which links income levels to broader development indicators , incorporating
This impact approach empowers companies to better understand their customers , design more effective businesses , build authentic brands and attract new talent and capital
not only traditional economic metrics like GNI or GDP to measure success , but also vital social and environmental factors that impact well-being . On average , FEMs exhibit lower GDP per capita and lower , or often troubling , HDI scores .
As a consequence , FEMs offer greater potential to create deep , lasting impact , and at a lower cost ; one dollar invested goes a lot further in addressing a pressing need .
FEMs also produce more investable impact where profitability and impactful outcomes are closely aligned , capitalising on the inherent correlation between socio-economic progress with business and market growth . This challenges a common misconception that impact investing involves a trade-off between impact and financial returns 2 . Increasing research indicates that strong risk-adjusted financial returns are not only possible but are being achieved in FEMs .
For instance , investing in companies providing essential goods and services tends to be more stable , less subject to
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WEJ | September 2024