The Fund is in outstanding alignment with SIFEM strategic objectives, both from a social and environmental perspective by addressing climate change mitigation & adaptation, financial inclusion, and gender equality simultaneously.
The pandemic hit both target countries, Colombia and Peru, heavily in terms of job losses. Construction being one of the main economic sectors, the Fund’s activities will contribute to job creation, particularly for lower-income people. The housing projects will be suited for lower-income families, and especially for single mother-headed households, qualifying the Fund for the 2X Challenge. The housing projects will be located in more centralized urban areas closer to jobs and social infrastructure. This means less commuting and in combination with energy-efficient constructing it will contribute to the climate mitigation objective.
SIFEM’s investment is catalytic since it helps the fund to reach the first closing faster and mobilize local private sector capital more easily.