SIFEM - Swiss Investment Fund for Emerging Markets

Impact Policy

SIFEM, the Development Finance Institution of the Swiss Confederation, is part of Swiss development cooperation. Its investments must fit in the strategic framework defined by Parliament every four years and complement other instruments of Swiss development cooperation.

SIFEM is an “impact investor,” as all SIFEM investments are made with the intent to generate measurable development impact and achieve targets such as job creation, skills development, tax payments, financial sector deepening and diversification, as well as the implementation of international best practice environmental, social and governance standards, all captured by specific indicators.

SIFEM’s “impact policy”: SIFEM commits to working to maximize the development effects linked to its investment decisions throughout the whole investment cycle, from investment analysis, investment decision-making, to investment management and monitoring. For this purpose, SIFEM analyzes and monitors the contribution of its investments to four broad development outcomes from January 2018 onwards, which are fully in line with the 2030 Agenda for Sustainable Development adopted by the United Nations in 2015 and with the strategic objectives assigned to SIFEM by the Swiss Government. All SIFEM investments contribute to the overall impact albeit in different ways, as captured by the different Outcomes depicted in the Graph 1 below.

Every SIFEM investment contributes at least to the first two outcomes (Economic viability and Economic development). Furthermore, some SIFEM investments may also contribute to additional developments effects captured by outcome 3 (Social Inclusion) and 4 (Global Public Goods & Challenges), depending on the characteristics of the investment: for instance, a sector-specific investment fund targeting education or health will also contribute to outcome 4, while an investment in a financial institution targeting low-income clients will also contribute to outcome 3. For the strategic period 2018-2020, at least 30% of SIFEM’s new investments must contribute to Outcome 3 and 4.

The SIFEM outcomes are linked to specific SDGs, as shown in Chart 1.

SIFEM is relying on a result measurement framework in line with the practice of other development finance institutions, allowing for the monitoring and aggregation of results at the portfolio level, see the “indicators” page.