Assessing, measuring and managing impact.
Learn about our theory of change, methodologies for assessing and measuring impact, and the guiding principles that underpin our commitment to sustainable development in emerging markets
SIFEM’s Theory of Change sets out how its activities contribute to long-term development impact. It translates SIFEM’s mandate into a portfolio-level results framework, showing how its investments and strategic partnerships are expected to support Switzerland’s international cooperation strategy, SIFEM’s strategic objectives, and the Sustainable Development Goals (SDGs).
At the core of SIFEM’s approach is the role of financial intermediation in supporting private sector growth in emerging markets. SIFEM strengthens local financial intermediaries to expand access to capital for small and medium-sized enterprises (SMEs). SIFEM’s contribution is both financial, through the provision of long-term capital and non-financial, through hands-on support to intermediaries. Together, these roles contribute to the sustainability of SIFEM’s outcomes.
In 2025, SIFEM updated its Theory of Change to align with the Federal Council’s 2025-28 Strategic Objectives. The revised framework builds on research, international best practice, and lessons from SIFEM’s historical portfolio. It sets out the expected pathways from SIFEM’s inputs to long-term development outcomes, while making underlying assumptions and key impact risks explicit, providing a more transparent basis for monitoring, learning and reporting.
SIFEM contributes to three key outcomes, each aligned with specific SDGs:
The result measurement framework used by SIFEM is composed of three different levels:
First, SIFEM uses its internal Impact Rating Tool (IRT), developed in 2024 to replace the previous GPR system. This tool aligns with the strategic objectives for 2025–2028 and enhances the quality and depth of investment evaluation. Since January 2025, the IRT has been systematically applied to all new investments, establishing an ex-ante benchmark to reflect the expected development effects prior to disbursement and monitoring ex-post development impacts throughout the investment’s lifecycle.
Second, a number of indicators are collected for each investment to measure development effects, which can be aggregated at the portfolio level and reported to the Swiss Parliament. These indicators are harmonized, to the extent possible, with other Development Finance Institutions and with the standardized metrics developed by the impact investing community.
Third, case studies are conducted periodically to take a closer look at the effects and value-add of SIFEM’s investments in specific contexts.
The IRT assesses the development performance prior to the investment and the actual development impact achieved during the whole investment period.
Development indicators (employment, traning, tax payments, financing volume, climate change mitigation, access to healthcare, etc.).
2 – 4 case studies per year.
SIFEM was among the first adopters of the Operating Principles for Impact Management. The Impact Principles provide a framework for investors to ensure that impact considerations are purposefully integrated throughout the investment lifecycle. Launched in April 2019, the Impact Principles were developed by the International Finance Corporation and are now hosted by the Global Impact Investing Network (GIIN). The Impact Principles describe the essential features of managing impact investments requiring impact considerations to be integrated into all phases of the investment lifecycle from strategy, origination and structuring, portfolio management, to exit.
SIFEM is a signatory of the Operating Principles for Impact Management.
Explore SIFEM’s impact results and our footprint in developing countries across the globe.
Explore SIFEM’s impact results and our footprint in developing countries across the globe.
