For microenterprises with high growth potential, traditional microcredit can be an insufficient source of capital, while private equity and venture capital remain largely out of reach. Hybrid financing bridges this gap, combining different types of capital—such as loans, equity, and grants—into a single, tailored financial package. This innovative approach allows investors to balance risk and return, provides entrepreneurs with the flexible capital they need to scale their businesses, and ensures that social and environmental impact are built into the financial structure from the very beginning. By moving beyond a single financing instrument, hybrid models can unlock new sources of capital and foster a more dynamic ecosystem of small business growth.

This course is designed to provide a comprehensive and practical guide to structuring and implementing hybrid financing deals for microenterprises. You will learn the different models of blended finance, from impact-first grants to structured debt-equity deals, and master the analytical tools needed to assess and manage the unique risks involved. By exploring the legal frameworks, investor expectations, and social impact metrics of hybrid financing, you will be equipped to design and execute innovative deals that drive both financial returns and meaningful social change.

Duration: 5 days

Target Audience:

• Microfinance institution (MFI) managers and executives
• Social entrepreneurs and startup founders
• Impact investors and fund managers
• Development and financial inclusion practitioners
• Professionals in charge of product design
• Legal and financial advisors
• Business development professionals
• Risk management specialists
• Regulatory and policy advisors

Objectives:

• Master the core concepts and models of hybrid financing.
• Understand the key differences between various blended finance structures.
• Learn how to design a tailored financial package for a microenterprise.
• Grasp the complexities of a debt-and-equity deal.
• Explore the role of grants and concessional capital.
• Understand the unique risks and returns of hybrid deals.
• Learn to build a financial model for a blended finance deal.
• Understand the legal and regulatory frameworks for hybrid financing.
• Analyze successful case studies of hybrid deals.
• Develop a strategic roadmap for a hybrid financing program.

Module 1: Foundations of Hybrid Financing

• What is hybrid financing and its importance
• The difference between traditional and blended finance
• The key players in a hybrid financing deal
• The role of different types of capital
• The business case for hybrid financing

Module 2: Models of Blended Finance

• The use of a a debt-and-equity structure
• The role of a convertible loan and its features
• The use of grants and concessional loans
• How to combine different types of capital
• Case studies of different blended finance models

Module 3: Structuring the Deal

• The process of structuring a hybrid finance deal
• The importance of a clear and well-defined term sheet
• The role of legal and financial advisors
• The key components of a hybrid financing agreement
• The art and science of negotiation

Module 4: Risk and Return Analysis

• The main risks in a hybrid financing deal
• The difference between a financial and a social return
• The role of risk-sharing and mitigation
• The importance of a well-defined exit strategy
• The trade-offs between risk, return, and impact

Module 5: Social Impact and Metrics

• The importance of a clear and measurable impact
• The role of a Theory of Change
• Using a social impact bond or a social impact contract
• The challenge of measuring impact
• The importance of a well-defined reporting system

Module 6: Financial Modeling

• Building a financial model for a hybrid financing deal
• The importance of a clear and accurate projection
• The role of a sensitivity analysis
• The use of a a waterfall model for returns
• The importance of a well-defined valuation

Module 7: The Legal and Regulatory Environment

• Navigating the legal framework for hybrid financing
• The importance of a clear and enforceable agreement
• The role of a well-defined governance structure
• The challenges of regulating blended finance
• The importance of a supportive policy environment

Module 8: The Partnership Ecosystem

• The importance of a dialogue between investors and entrepreneurs
• The role of a dedicated business development team
• The importance of a network of trust and collaboration
• Leveraging partnerships for due diligence and monitoring
• The role of an ecosystem builder

Module 9: Operations and Due Diligence

• The process of due diligence for a hybrid financing deal
• The importance of a clear and well-documented process
• The role of a due diligence checklist
• The challenges of due diligence for a microenterprise
• The importance of a well-defined monitoring system

Module 10: Scaling and Sustainability

• The challenges and opportunities of scaling a hybrid financing program
• The importance of a scalable business model
• The role of technology in automating processes
• The long-term financial sustainability of a hybrid financing program
• New trends and innovations in the sector

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.