The Selection Framework
A seven-step decision methodology
The core methodology chapter — the one practitioners will return to most often. It provides a structured seven-step process for deciding which capital to pursue, in what order, from whom, and why — before writing a single pitch document.
The seven steps
- Classify your project — Revenue-generating, Public Good, or Hybrid. Most African social capital projects are Hybrid.
- Define your capital need — purpose, amount (with range), tenor, currency, timing, stage. Each element narrows the universe.
- Map your impact thesis to provider mandates — match SDG targets, IFC PS dimensions, IRIS+ metrics. Find portfolio precedent.
- Assess your readiness — governance, financials, track record, ESMS, impact, AML/KYC, team. Fix gaps before approaching, not during DD.
- Identify your constraint profile — timeline, dilution tolerance, reporting burden, geographic restrictions, currency preference.
- Score and rank providers — 1–5 on Mandate Fit, Portfolio Precedent, Ticket Match, Timeline Fit, Relationship Access (out of 25). Pursue Now: 18+. Pursue Later: 15–17. Do Not Pursue: <15.
- Sequence your approach — Anchor-First Principle. Always secure the anchor concessional commitment before approaching commercial capital.
Recommended blended finance sequence
| Phase | Activity | Timeline | Purpose |
|---|---|---|---|
| Phase 1 | Design-stage grant (Convergence, FSD Africa, foundation) | 3–6 mo | Fund structuring: legal, ESIA, SPO, advisory |
| Phase 2 | Anchor concessional commitment (DFI / foundation, first-loss) | 6–18 mo | De-risks opportunity; enables commercial engagement |
| Phase 3 | Commercial capital (senior tranche) | 3–9 mo post-anchor | Faster — anchor has done credibility work |
| Phase 4 | Technical assistance grant (parallel) | 3–6 mo | Capacity, impact systems, governance |
Where you stand · selection
You don’t yet know if you are Revenue, Public Good, or Hybrid — and so cannot scope the universe.
A 1-day classification + capital-need definition workshop producing your first short list.
You have a long list of providers but no scoring against Mandate Fit, Precedent, Ticket, Timeline, Access.
Structured scoring of 30+ institutions and a Pursue Now / Pursue Later / Do Not Pursue ranking.
You are pitching commercial investors before securing an anchor — and getting polite delays.
Re-sequencing of your raise with an anchor-first plan, design-grant pathway, and revised timeline.