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Close to USD 100m of new investment commitments by SIFEM in 2022

 | Organisation

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 an 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).

Close to USD 100m of new investment commitments by SIFEM in 2022

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 an 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.

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At the SIFEM Annual General Meeting on 5 May 2023, the Business and Financial Report 2022 and the audited Financial Accounts 2022 were approved.

Contact

Mirjam Garzon, SIFEM Deputy Head Business Services Management, mirjam.garzon@sifem.ch, +41 22 552 79 13

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