Target Market

Microleverage will strive to serve a target market that can best be described as ‘economically active entities who do not qualify as formal sector players’. This definition makes our client base as diverse and as numerous. By definition of our target market, our client base can be classified broadly as shown below:

Individuals – The clients covered under this category constitute about 45% of economically active people in Africa. They are usually engaged in unstructured form of employment, or involved in one form of apprenticeship or the other. Their income is often characterised as low, irregular, unstructured and unpredictable. With a good understanding of the need of this class of clients, we are well positioned to offer both financial and non-financial products and services that will ensure an improved quality of life for them.

Informal Business Units (IBUs) – The clients that constitute this group can further be classified into various categories, but a key common characteristic is that they are businesses, albeit managed and run with no formal structure in place. They are often based around talents and intellectual property of one individual. This group consists of mostly one-person businesses, but it is not unusual to find some family-owned businesses in this category.

Trade Associations – A lot of IBUs, having understood the advantages that aggregating themselves as groups can deliver to them, form Trade Associations with similar IBUs. Experience has shown that the associations such formed have become very formidable in terms of lobbying, financial and governmental relations.

Community-based Business Groups – This mode of aggregation is usually formed amongst individuals and IBUs alike. Their main objective is to achieve synergy in terms of access to capital, market advantage and other input sourcing. However, most often they are also engaged in business and economic activities as a body, well structured and profit oriented as a body aside from the individuals and IBUs that constitute them.

Start-ups and SMEs – This section of our target market has recently assumed a growth path in urban areas in Nigeria. They include businesses formed by young people who would rather own their businesses than work a job. A major difference between this group and IBUs is that they are relatively more structured, have a form of legal identity or the other, and some of them have even moved from owner-management to hired management. However, their size, mode of operations, financial patterns, business cycle management, and level of administrative requirement still make them unattractive clients to formal business advisory and support services.

Micro Finance Banks – Our involvement with MFBs stems from their area of business; we intend to make our expertise in this sub-sector available to them towards the success of all stakeholders.Our services to MFBs shall include, but not limited to, product development, feasibility study and business plan writing for customers, credit profiling for customers and business improvement/advisory services for customers.

Mainstream Financial Institutions – All types of financial institutions will, at a point or the other, have to do business in the informal sector. Both the deposit taking universal banks and other non-conventional financial institutions all have to operate, to a certain level, in the informal sector. The commercial banks operation in some localities designated as rural, or commercially disadvantaged communities are sometimes directives of the regulatory authorities, the flouting which attracts penalties. However, since their scale of operation, level of understanding of this sector, and the attendant high cost of operation make in difficult, or almost impossible for commercial banks to operate in these environment, most of them will rather play outside this sector and forego the profit therein and in some cases prefer to pay the penalties than establish presence in these environment or serve this sector. Microleverage is set to make our expertise, technology and infrastructure available to these financial institutions towards profitable and sustainable operation in the environment.

Government/Non-governmental bodies – Government at various levels have the responsibility of ensuring the socio-economic development of all members of the society, irrespective of class, status, or localities. We provide governmental and non-governmental organs with the required services in, not only reaching out to, but also ensuring successful integration of entities in this sector into the main economy.

We Engage

> Agent Banking Network
> Outreach Centres
> Product Development

We Nurture

> Business Incubators
> Entrepreneural Development services
> Learning Interventions

We Empower

> Flexsuites and Virtual Offices
> Financial Intermediation
> Market Access/Linkages

Microleverage will strive to serve...
...a target market that can best be described as 'economically active entities' who do not qualify as formal sector players.