Government-owned SIFEM reports on its economic, social, and environmental impact achievements in developing countries/ SIFEM'S 2023 IMPACT REPORT
Geneva (ots)
In 2022, the Swiss Investment Fund for Emerging Markets (SIFEM) created important economic, social, and environmental impacts in developing countries. Over 600 companies in SIFEM's investment portfolio supported more than 483,000 jobs, increased their financing for microentrepreneurs by 7% and for small and medium-sized enterprises (SMEs) by 15%, contributed to an increase of local tax payments by 12%, and produced 5,159 GWh of clean energy.
SIFEM's impact goals are aligned with Switzerland's International Cooperation Strategy 2021-24. As an instrument of the Swiss economic development cooperation, SIFEM supports the private sector in developing countries and its integration into the global economy, fostering economic growth and sustainable development. Furthermore, its investments contribute to addressing global climate challenges.
Supporting jobs
In 2022, companies in SIFEM's portfolio supported 483,253 jobs, a 11% increase compared to 2021.[1] SIFEM specializes in providing long-term financing to SMEs and other fast-growing companies, promoting economic growth and job creation. SIFEM's investments contribute to boosting living standards, as jobs reduce food insecurity, improve health and well-being, and help build social cohesion.
Promoting social inclusion
Financial institutions in SIFEM's investment portfolio increased their microloan and SME loan portfolios by 7% and 15%, respectively, providing access to crucial financial services to underserved populations. SIFEM provides financial services to micro-, small, and medium-sized enterprises (MSMEs), enabling them to invest in their businesses, manage their income, and create a financial safety net.
Providing access to financial services to underserved people goes hand in hand with supporting gender equality. To support the creation of economic opportunities for women, SIFEM supports 2X Global, an initiative aiming to advance gender lens investing and bridge the financing gap that women face worldwide. 43% of investments made in 2022 were in line with this initiative. Moreover, 34% of jobs supported by SIFEM are held by women.
Climate change mitigation & adaptation
SIFEM is committed to addressing the urgent need for climate action and supporting inclusive, low-carbon economic growth and sustainable development in emerging markets. In line with its Strategic Objectives, SIFEM is allocating at least 25% of new investments to advance climate change mitigation and adaptation and aligning all new investments with the objectives of the Paris Agreement. In 2022, SIFEM made three new climate investments in sustainable and affordable housing, agricultural technology, and renewable energy in Asia and Latin America.
In 2022, SIFEM portfolio companies produced a total of 5,159 GWh of clean energy, the equivalent of the electricity consumption of 800,000 Swiss residents in one year. The clean energy produced, and efforts made by other projects to reduce greenhouse gas emissions have led companies in SIFEM's portfolio to avoid the emission of 4.9 million tonnes of greenhouse gases.
Filling financing gaps
Almost three-quarters of SIFEM's investment portfolio was concentrated in Asia and Africa, including investments in 23 least least-developed countries (LDCs). SIFEM also supports middle-income countries where private sector support is needed to promote economic development.
Jörg Frieden, Chairman of the Board: "As a development finance institution, SIFEM's role is to fill financing gaps and to support private sector growth in emerging economies. By demonstrating financial sustainability and positive impact, SIFEM investments invite local and foreign investors to follow. SIFEM's investment in the Ukrainian fund, Horizon Capital, shall be seen in this light: It recognizes the urgent need for affordable capital in a market where interest rates are prohibitively high, and access to capital is scarce. This strategic investment not only aligns with our commitment to job creation and lasting impact but also showcases the power of partnership in times of adversity."
-----
Please find more information about SIFEM, achieved results, and reporting methodology in the 2023 Impact Report.
About SIFEM
SIFEM is the Swiss Development Finance Institution. It is owned by the Swiss Government and an integral part of Switzerland's International Cooperation Strategy. SIFEM provides long-term financing through financial intermediaries to SMEs and other fast-growing companies in developing countries. It aims to reduce poverty and foster sustainable, inclusive, and resilient economies by creating and securing more and better jobs, growing opportunities for the underserved, and supporting projects towards a Just Transition. SIFEM aligns its investments with international environmental goals to address the global climate crisis and support emerging markets achieving low-carbon economic growth. With its investments, it contributes to closing financing gaps and mobilizing additional private capital for the growth of local companies in developing countries.
By the end of 2022, SIFEM's investment portfolio amounts to USD 451m, directly and indirectly financing 612 companies in 80 countries. Since its inception, SIFEM made commitments of almost USD 1.3 billion.
[1] This includes direct jobs supported at the level of SIFEM's investees (funds and investee companies), as well as indirect jobs supported through loans to MSMEs.
Contact:
SIFEM AG
Mirjam Garzon, SIFEM Deputy Head Business Services Management
E: mirjam.garzon@sifem.ch
T: +41 22 552 79 13
www.sifem.ch