Swiss Investment Fund
for Emerging Markets

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Impact framework

Assessing, measuring and managing impact.

Impact framework

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

Theory of change

SIFEM uses a specific “Theory of Change” at the portfolio level. A Theory of Change is a conceptual framework that outlines the cause-and-effect relationships between activities, intermediate outcomes, and long-term goals of a development intervention or initiative. From the standpoint of a DFI, a Theory of Change serves as a roadmap to understand how and why the intended impact is expected to occur through its financial and non-financial interventions.

SIFEM’s Theory of Change is aligned with its Strategic Objectives. It underpins all investments with the logic that financial intermediation plays a pivotal role for private sector growth in developing countries and emerging markets. SIFEM focuses on supporting financial institutions and investment funds in their capacity to deliver long-term capital to SMEs and fast-growing companies both by providing long-term finance and non-financial, hands-on advice.

SIFEM’s investment activities, the inputs, contribute to long-term development impacts, in particular resilient economies & businesses, poverty reduction and reduction of inequalities, inclusive & low-carbon growth.

The financial and non-financial inputs generate four SIFEM Outcomes:

  1. Economic viability & resilience
  2. Economic opportunities & decent jobs
  3. Social Inclusion
  4. Climate change mitigation & adaptation

All Investments are required to contribute to SIFEM Outcomes 1 and 2 in minimum.

How we assess and measure

The result measurement framework used by SIFEM is composed of three different levels:

First, an internal rating tool (GPR) originally developed by the German Development Finance Institution (DEG), is used to appraise investments and track their development performance over time. In order to do this, a benchmark is established prior to investment to reflect the expected development effects.

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.

Internal rating tool

SIFEM’s GPR System provides an assessement of the development performance during the whole investment period.

Development metrics

Development indicators (employment, traning, tax payments, financing volume, climate change mitigation, access to healthcare, etc.).

Case studies

2 – 4 case studies per year.

Impact principles

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.

Impact Results

Explore SIFEM’s impact results and our footprint in developing countries across the globe.

Impact Results

Explore SIFEM’s impact results and our footprint in developing countries across the globe.