e.g. social infrastructure, water resources, transport and energy.
Who We Are
ITARE has been set up in 2016 and is majority owned by the management. It offers business development, financial advisory services and technical assistance for project preparation and execution to individual clients and the set-up of value and supply chains.
ITARE operates in emerging markets with a focus on Sub-Saharan Africa and Middle East in three key areas: Infrastructure, Agribusiness and Smart Solutions.
Visit this section to find out the latest company news, events, and conferences we have attended as speakers.
The Missing Middle in Africa: funding models for enterprises with growth potential
Africa is the least developed region in the world. The strategy to lift the continent out of poverty remains elusive. The various strands of economic development strategies put different emphasis on the role of governments and the private sector; the functions of the State and that of the market. As the banking sector remains largely underdeveloped, over the past decades a lot of emphasis has been put on the creation of a new set of players, like microcredit and microfinance institutions, leveraged on the idea that the poor are “natural-born entrepreneurs”. The microcredit lending model has been effective in reaching the poor but not in supporting businesses with growth potential; at the same time, the traditional banking sector focuses on larger and formal businesses, through the traditional lending model. The focus of this paper is the “missing middle”: more impressionistic than a statistical concept, it refers to that segment of enterprises whose demand for credit remains largely unmet. The Paper argues that this segment needs an integrated approach, assisting informal enterprises to become formal and following up through their growth process. Being formal is a prerequisite to access various forms of funding, but it is not costless. Enterprises must be assisted throughout their lifecycle with a combination of technical assistance and various forms funding. Financial tools need to be adapted as firms in this segment rarely have a financial track record or adequate collaterals. A new credit model must be developed to support financial decisions based on cash-flow approach. In turn, this requires continued technical assistance to the enterprise. The costs of reaching the “missing middle” will be relatively high, both in terms of risk-premium and administrative costs. Development Finance, Impact Investment and other forms of financial support must hold realistic rate-of-return expectations. The “missing middle” creates opportunities for modern jobs and contributes to the State revenue. This must enter into the cost-benefit metrics.
“How to source Italian technologies and the instruments of cross-border financing”: reportage from the Workshop in Accra
Accra – The last 8th October, in the beautiful location of La Villa Boutique Hotel in Accra, in front of a large gathering of the local business community, ITARE held the business workshop “How to source Italian technologies and the instruments of cross-border financing”. The event focused on the mutually beneficial opportunities that can be generated by the trade relations between the two countries and the range of financial tools that can be used to support or enable such opportunities. The workshop, chaired by the Italian Ambassador H.E. Giovanni Favilli, organized jointly with our local partner FINCAP Securities and with the key support of the Italia Ghana Business Association (IBAG), has seen the presence of more than 70 between local and international companies, trade associations and Ghanaian institution, including representatives from the Ghana Investment Promotion Center (GIPC). Given we are talking about the second industrial economy in Europe and the fast-growing country in the African continent, trade opportunities are vast and diverse, as it has been confirmed by the large interest and participation. Ghanaian entrepreneurs are keen in investing in mechanization and industrial automation, with to aim to scale their production capacity and pursue higher efficiency and safety requirements – and they are looking for the European highest quality standards. The most promising industries are Agribusiness and Construction. In these cases finance is often key and there are several tools that the supplier can put in place to arrange the funding for its clients. The role of ITARE and its local partner is to act as the link between the foreign supplier, the local company and the financial institutions, from the scouting and assessment of the business opportunity to the structing of the need trade, export or project finance instruments.
ITARE BIG5 – Nairobi, Kenya 2019
ITARE’s team took part in the BIG 5 exhibition held in Nairobi from November 5th to 7th. DANIELE ASCARI – Project Manager of Concrete Solutions (main ITARE’s Business Line in the building materials field – www.cs.itare.en ) – together with Moses Mbitu, ITARE’s Kenyan partner, Nicholas Simani , J.O. Okello, SCHNELL’s partners, Luca Serafini and Francis Kamau, CGM’s partners, organised and managed the exhibition area, sponsored by the Emilia-Romagna region. They all introduced the companies which are currently partners of the Concrete Solutions’ chain to whoever was interested in ITARE’s activities and projects. Here below the list of the companies represented by ITARE in this occasion: COOPERATIVA EDILE APPENNINO, CGM, CIFA, COMEC, CROCI MARIO & FIGLI, MARCANTONINI, SCHNELL, VORTEX. At the last Big 5 edition, more than 200 expositors and 11,000 visitors took part. During the exhibition, ITARE got more than 50 contacts and 19 business opportunities have been provided for the benefit of ITARE’s partners.