Swiss Investment Fund for Emerging Markets (SIFEM) – Least Developed Countries (LDC) Risk Support
To accelerate Swiss investments into Least Developed Countries (LDCs), this programme will establish a co-operation between SDC and the Swiss Investment Fund for Emerging Markets (SIFEM). The co-operation is built on the provision of first loss guarantees, financed by SDC, for SIFEM investments benefitting local Small and Medium Enterprises in LDCs. This innovative programme will also build capacities in local financial markets and help to mobilize private and public sector funds for fulfilling the Sustainable Development Goals.
Land/Region | Thema | Periode | Budget |
---|---|---|---|
Weltweit |
Inclusive economic Development
Schaffung von Arbeitsplätzen
Informal banking & insurance KMU Förderung |
10.03.2020
- 31.12.2027 |
CHF 14’200’000
|
- National State Institute SWISS
- Schweizerischer Privatsektor
-
Sektor nach Kategorisierung des Entwicklungshilfeekomitees der OECD OTHER SOCIAL INFRASTRUCTURE AND SERVICES
BANKGESCHÄFT UND FINANZDIENSTLEISTUNGEN
INDUSTRIE
OTHER SOCIAL INFRASTRUCTURE AND SERVICES
INDUSTRIE
Sub-Sektor nach Kategorisierung des Entwicklungshilfeekomitees der OECD Politik und Verwaltung im Beschäftigungsbereich
Informelle und halbformelle Finanzintermediäre
Förderung kleiner und mittlerer Unternehmen (KMU)
Politik und Verwaltung im Beschäftigungsbereich
Förderung kleiner und mittlerer Unternehmen (KMU)
Querschnittsthemen Projekt unterstützt auch Verbesserungen in der Partnerorganisation
Unterstützungsform Auftrag mit treuhänderischer Mittelverwaltung
Projekt- und Programmbeitrag
Projektnummer 7F10420
Hintergrund |
Today, only a small portion of Foreign Direct Investment (FDI) flows into Least Developed Countries (LDCs). Switzerland’s Strategy for International Co-operation 2021–2024 foresees to complement official development assistance (ODA) by catalysing additional private-sector investments on the scale needed for the achievement of the Sustainable Development Goals (SDGs) – including in LDCs, other low-income countries and other difficult or fragile contexts (see annex 8). This shall allow reducing poverty and increasing stability. It is in Switzerland’s interest to position itself as a pioneer for blended finance in LDCs, and Switzerland’s strong financial and impact investment sector represents a clear value added. SDC thus identified a strengthened cooperation with the Swiss Investment Fund for Emerging Markets (SIFEM) – based on the organisation’s proven track-record – as a strategic choice. SIFEM is Switzerland’s Development Finance Institution (DFI) and is owned and capitalised by the Swiss Confederation. Control and oversight are ensured by SECO. The Federal Council recently approved the strategic objectives for SIFEM for the years 2021 – 2024. They foresee an increase of SIFEM’s activities in LDCs up to at least 12%, with an overall rate of return of 3% on its investment portfolio. The strategic objectives refer to the first loss guarantee scheme presented in this proposal. Furthermore, SIFEM, together with SECO, has been mandated to embark on discussions on how to undertake additional investment activities in LDCs investing SDC’s own funds. The SDC guarantees of CHF 12.81 million will trigger investments by SIFEM in LDCs of at least CHF 25.62[1] million. In addition, investments of SIFEM are expected to support third-party investors to commit an additional investments of about CHF 51 million towards LDCs assuming a twofold leverage ratio in LDCs (conservative estimate).
[1] Assuming that SDC will provide guarantees with the maximum risk absorption level of 50 % (conservative estimate). |
Ziele | Improved well-being of women and low-income households through the provision of finance to small and medium sized enterprises (SMEs) in Least Developed Countries. |
Zielgruppen |
Financial intermediaries Small and medium enterprises (SMEs) in the LDCsand other eligible countries (list in annex 8) Women and low-income households |
Mittelfristige Wirkungen |
1. SIFEM increases its investment share in LDCs, other low-income countries and other difficult or fragile contexts from 10 % to at least 12 % by 2024. 2. Financial intermediaries in LDCs are providing increased financings to SMEs in order to ensure their financial viability, create jobs and provide basic services. 3. SIFEM strengthens the local financial ecosystem. |
Resultate |
Erwartete Resultate: 4 SIFEM investments, covered by a first-loss guarantee provided by SDC in LDCs as well as other eligible countries. Provision of specific technical assistance support to borrowing companies. Established co-operation between SDC and SIFEM. Resultate von früheren Phasen: Currently, SIFEM has invested around 10 % of its active investment commitments in LDCs. |
Verantwortliche Direktion/Bundesamt |
DEZA |
Kreditbereich |
Entwicklungszusammenarbeit |
Projektpartner |
Vertragspartner Privatsektor Schweizer staatliche Institution |
Koordination mit anderen Projekten und Akteuren | Synergies with other SDC projects in the target countries are identified and strengthened at country level. |
Budget | Laufende Phase Schweizer Beitrag CHF 14’200’000 Bereits ausgegebenes Schweizer Budget CHF 898’926 |
Projektphasen | Phase 1 10.03.2020 - 31.12.2027 (Laufende Phase) |