Close to USD 100m of new investment commitments by SIFEM in 2022
Bern (ots)
In 2022, the Swiss Investment Fund for Emerging Markets (SIFEM) committed a total of USD 95 million to seven new investments and concluded the year with a negative operating result of minus CHF 13.1 million. The seven new investments will contribute directly to the achievements of SIFEM's development goals, especially in terms of job creation, climate change mitigation and adaptation, and exposure in the least developed countries (LDCs).
At the end of 2022, SIFEM, the development finance institution (DFI) of the Swiss Confederation, posted a negative operating result of minus CHF 13.1 million. This result is due to the deteriorating macro-economic environment which led to lower investment valuations and slower exits from previous equity investments. As the social and economic consequences of the COVID-pandemic coincided with the crisis in Ukraine, the overall investment situation remained challenging. As SIFEM's Chairman, Jörg Frieden stated: "In a fragile development context, SIFEM's investments have continued to fill financing gaps and have proven to be effective in supporting counter-cyclically economic activities in poor countries".
Substantial allocation to Climate Finance
In 2022, SIFEM committed a total of USD 95 million in seven new investments, including four investments in private equity funds, and three loans to financial institutions. Most of the capital was allocated to priority countries of the Swiss International Cooperation, while three investments benefit LDCs, and one supports the Ukrainian export-oriented IT sector. With three new investments contributing to climate protection, SIFEM continued to expand its climate finance activities and reached the goal of allocating 25% of its investments to the fight against climate change. These investments are also intended to facilitate developing economies' energy transition, thereby ensuring that local communities are not left behind in the process ("Just Transition").
Stronger Governance Structure
SIFEM revised its governance and organization in 2022. The Board decided to separate operational and monitoring tasks. It charged one company with the preparation of investments decision and with the management of the portfolio and another manager with strategic and monitoring functions: Tameo Impact Fund Solutions SA was appointed as the business services manager and took up its mandate in September 2022, while responsAbility Investments AG took over from OBVIAM AG the portfolio management functions on March 1, 2023.
At the SIFEM Annual General Meeting on 5 May 2023, the Business and Financial Report 2022 and the audited Financial Accounts 2022 were approved. The Business and Financial Report 2022 can be consulted here.
About the Swiss Investment Fund for Emerging Markets (SIFEM)
SIFEM, the development finance institution of the Swiss Confederation, was established in its current form in 2011. SIFEM is wholly owned by the Swiss Government and is an important instrument for fostering private sector development in emerging and developing markets, complementary to other measures of economic development cooperation by the Swiss Government. SIFEM provides financial support to commercially viable small and medium-sized enterprises (SMEs) and fast-growing local companies, which in turn helps to create jobs and reduce poverty. SIFEM also targets investments that contribute to climate change mitigation and foster women's economic empowerment.
Contact:
Mirjam Garzon, SIFEM Deputy Head Business Services Management
mirjam.garzon@sifem.ch
+41 22 552 79 13
SIFEM AG
rue de l'Arquebuse 12
1204 Geneva
Switzerland
www.sifem.ch