MICROFINANCE

HOUSING FINANCE

PUBLIC FINANCE

COMMUNITY DEVELOPMENT

SLUM UPGRADING

BASIC SERVICES & COMMUNITYINFRASTRUCTURE

EMPLOYMENT GENERATION

E x p a n d i n g t h e f r o n t i e r s o f f i n a n c e & d e v e l o p m e n t .

The Development InnovationsGroup (DIG) is a private, interna-tional firm committed to fosteringinnovative solutions in the fieldsof development finance, and urbanand community services. Ourstrategy is to link global develop-ment expertise with the inherentstrengths of local communities,entrepreneurs, and private sectororganizations to spur dynamic,locally-driven development.

DIG works in developing andtransition economies, as well as inpost-emergency and post-conflictsettings. Our key partners includeprivate financial institutions,government agencies, donororganizations and non-governmen-tal organizations (NGOs).

DIG is registered in Maryland, USAand in Beirut, Lebanon.

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What we do

I. Development Finance

DIG specializes in microfinance,housing finance, and public financeproviding the following key services:

Microfinance• Market Assessment.• Product Design.• Systems & Tools Development.• Training for MFIs, NGOs &

Banks.• Supporting Regulators & Policy

Makers.• Linking Microfinance to Banks.

Housing Finance• Housing Microfinance.• Mortgage Finance Systems.

Public Finance• Municipal Finance. • Small Infrastructure Finance.

II. Urban && Community Services

DIG offers program management &advisory services in the following:

• Community Development.• Slum Upgrading.• Basic Services & Community

Infrastructure.• Employment Generation.

III. Fund Management

• At the global level, DIG assists inthe management of funds investedin profitable development financeinstitutions.

• Within a country-specific context,DIG manages or "services" com-mercial funds invested in microfi-nance, small business and housingfinance for the poor.

The Development Innovations Group is dedicated to excellence in management,program design, training, research, and advisory services. We believe thatdevelopment finance and urban and community services are mutually reinforcingpillars upon which communities can build a platform for sustained economicgrowth and improve their social well-being. Fund management plays a pivotalrole in bolstering these development pillars by supporting the activities ofdevelopment-focused enterprises.

5MICROFINANCE

Market Assessment: Microfinancemarket assessments - a core area ofDIG’s expertise - precede the productdesign phase and shed important lighton: the nature of existing financial serv-ices, composition of the financial spec-trum, potential demand for financialproducts, size of the market, and therepayment capacity of potential clientele.

Product Design: Designing a microfi-nance product properly from the outsetmay be the most critical step in thestartup of a microfinance institution(MFI). DIG experts provide tailoredtraining and advisory services in the areasof business planning, product designand pricing, operational methodologies,and monitoring and evaluation.

Systems & Tools Development:Establishing proper systems and proce-dures is the next step in ensuring thesuccessful execution and sustainabilityof a microfinance operation. DIGworks with MFIs, commercial banksand NGOs to develop the full array ofinstitutional systems and managementtools, from loan applications andapproval systems to operating manuals,employee incentive schemes, and MISsystem requirements design.

Training for MFIs, NGOs & Banks:One of the greatest obstacles to main-streaming microfinance today is the lackof adequate human capital. DIG helpsMFIs, NGOs and commercial banksequip their managers, supervisors andfield staff with the skills necessary tomanage the myriad challenges of run-ning an efficient microfinance operation.

Linking Microfinance to Banks:DIG assists banks to structure, train,and operationalize microfinance divi-sions. DIG also links commercial bankswith MFIs through comprehensiveservicing arrangements.

HOUSING FINANCEHousing Microfinance: Key servicesDIG offers in the field of housingmicrofinance include: market assess-ments; product design; systems andtools development training; design ofguarantee facilities; and, advising regula-tors and policy makers.

Mortgage Finance Systems: As thecapital markets in developing countriesgrow, the demand for conventionalmortgages is increasing. DIG workswith governments, regulatory authori-ties and the financial sector to buildtheir capacity to meet this demand, andto determine the feasibility of mortgagefinance systems for the poor.

PUBLIC FINANCEMunicipal Finance: DIG expertswork with local and national authoritiesto assess the feasibility of municipalbond floatation, and how municipalfinance initiatives can be leveraged insupport of development objectives suchas slum upgrading.

Small Infrastructure Finance: Smalland community-based infrastructurefinancing differs significantly frommainstream microfinance and more for-mal municipal finance schemes. DIGworks with local stakeholders to designinnovative and appropriate financingmechanisms for small and community-based infrastructure.

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Development Finance

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FUNDMANAGEMENT

Fund management is a critical mecha-nism for mobilizing the substantialcapital and resources needed tosupport the broad scale expansion ofdevelopment finance. DIG seeks toleverage investments from multilateraldevelopment institutions, foundations,and socially-minded investors to designand manage funds that support viabledevelopment finance institutions at

both the global and national levels.Through equity investments, debtfinancing, and guarantee facilities,these funds will stimulate the growthof microenterprise development, smallbusiness lending, housing finance,public infrastructure, and othercommercially viable developmentventures, while providing reasonablerates of return to investors.

COMMUNITYDEVELOPMENTDesigning successful community-based development programs requiresa holistic approach that builds on theinput and commitment of localstakeholders. DIG experts design andimplement community developmentprograms that combine innovativeparticipatory approaches with labor-intensive methodologies, thus buildingcommunity assets while generatingemployment and building vocationalskills.

SLUM UPGRADINGDIG designs and manages cutting-edge community upgrading programsthat combine innovative microfinanceand municipal financing mechanismsto deliver basic services (electricity,sanitation, roads, etc.) to urban slumdwellers. Our staff works with nation-al and local governments, financialinstitutions, the private sector, NGOsand community-based organizations(CBOs) to design integrated programsthat address the infrastructure, health,education and financial service needsof informal settlements.

BASIC SERVICES &&COMMUNITYINFRASTRUCTUREThe provision of basic infrastructureand services are essential to thesocio-economic growth of healthycommunities. DIG experts can designand manage programs focusing onwater and sanitation, roads, electricity,and waste management in rural andurban settings.

EMPLOYMENTGENERATIONDIG views labor-intensive programsas a key component of urban andcommunity infrastructure develop-ment. Such programs provide ampleopportunity to immediately addressunderemployment, while offering thelong-term benefit of improvedvocational and business skills forentrepreneurs and job seekers.

FUND MANAGEMENT

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DIG is based in Washington, DCand in Beirut, Lebanon. Our staffincludes development profession-als who are worldwide experts in

microfinance, housing finance,urban and community services,community development, infra-

structure rehabilitation, post-dis-aster reconstruction and fund

management. We are committedto expanding the frontiers offinance and development by

helping our clients design andmanage innovative high-impactprograms, and by helping poor

entrepreneurs and familiesaround the world increase their

income and build their asset base.

Who we are

Franck Daphnis, President & CEOMr. Daphnis is a recognized leader in micro-finance, housing finance, and urban devel-opment. He has authored and edited severalpublications on housing finance, includingthe seminal work, Housing Microfinance: AGuide to Practice (Kumarian Press, January2004). Mr. Daphnis has served as a keyadvisor on development finance and urbanissues to numerous noteworthy institutionsincluding: the Cities Alliance; CGAP; IFAD;SIDA; and the World Bank.

Dr. Mayada Baydas, Senior VicePresident & Managing DirectorDr. Baydas is a leading expert and publishedauthor in the field of microfinance. Herresearch and practical skills focus particularlyon the commercialization of microfinancethrough NGO and banking sector partner-ships. Dr. Baydas established and served asExecutive Director of the largest microfi-nance organization in Lebanon. She hasworked in more than 30 countries, mainly inthe Middle East, Asia and Africa.

Delila Khaled, Vice President, ProgramsMs. Khaled brings more than 10 years ofexperience working with private sector, non-profit, multi-lateral and bi-lateral develop-ment institutions. She has extensive experi-ence in the design and management ofdevelopment programs in myriad develop-ment contexts, including post-emergencyand conflict settings. Her broad expertiseincludes microfinance, rural development,employment generation, investment pro-motion, and community services.

Ruby AlSalem, Director for MicrofinanceConsulting ServicesMs. AlSalem has designed, implemented andco-managed several programs related tomicrofinance, cooperative strengthening,and institution building in the Middle East.She is an experienced microfinance opera-tions manager and trainer. Ms. AlSalem hasdelivered comprehensive training programsfor staff of commercial banks and MFIs inJordan, Romania, Palestine, Egypt, Iraq,Lebanon and Pakistan.

DIG’s clients and partnersinclude:

Consultative Group to Assist thePoor (CGAP)

European Investment Bank (EIB)

Habitat for Humanity International

ImagineNations Group

International Finance Corporation(IFC)

International Fund for AgriculturalDevelopment (IFAD)

KfW Entwicklungsbank

Louis Berger Group

Swedish International DevelopmentAgency (SIDA)

Tameer Microfinance Bank

United Nations Educational,Scientific and Cultural Organization(UNESCO)

United States Agency forInternationalDevelopment (USAID)

The World Bank

DIG FOUNDERS

Development Innovations Group

USA1010 Wayne Avenue, Suite 800, Silver Spring, MD 20910Phone: 301-565-0080, Fax: 301-565-0081

LebanonGefinor Center, Block D, Suite 301-1, Clemenceau Street, Beirut.Phone/Fax: +961-1-746595

www.developinnovations.com