“2023 has been a record year for SIFEM, with new investments totaling USD 144 million. By the end of the year, SIFEM’s active commitments reached USD 1,002 million, covering 71 countries. This report offers key insights into our portfolio, highlighting the social, environmental, and economic impacts achieved, along with its contributions to SIFEM’s strategic objectives. It serves as a vital accountability tool and a strategic guide for our activities and decision-making,” said Jörg Frieden, Chairman of the Board.

Job Support and Creation

In 2023 SIFEM’s portfolio supported more than 522’000 jobs which marks an 8% increase to 2022. Job creation is crucial for reducing poverty and improving livelihoods in any economy and emerging markets, it plays a key role in transitioning low-wage, informal employment into higher-quality, formal sector positions. Through our investments, we target the ‘missing middle’ – businesses that are too large for microfinance but too small or risky for traditional banks – and stimulate economic growth. As these companies grow, they create jobs, enhance productivity, and improve working conditions, contributing to economic stability, workforce development, and better livelihoods across the regions.

Gender Equality

40% of jobs supported by SIFEM’s portfolio were held by women, marking an increase of 5 percentage points from 2022 and reflecting a growing commitment to gender equality. We integrate gender considerations throughout our investment process to advance women’s economic empowerment. This approach aims to increase women’s financial inclusion, close workforce gender gaps, enhance leadership opportunities, and tailor products and services to women’s needs. 

Climate Action

We invest in and mobilise funds for climate change mitigation and adaptation to promote inclusive, low-carbon growth. At least 25% of new investments are directed toward these areas, supporting a ‘Just Transition’ that benefits vulnerable communities. In 2023, we made four investments focused on renewable energy, water management, and sustainable agriculture, aiming to reduce carbon emissions and enhance climate resilience. Investments in clean energy resulted in the avoidance of 9.3 million tons of GHG emissions.

Catalytic role

As part of our mission to reduce the financing gap, we help mobilise capital for regions and projects where investors are hesitant due to elevated risks and uncertainties. In 2023, for every dollar SIFEM invested in funds, an additional USD 2.9 was contributed by private investors.

We also strive to invest in regions with the greatest need. Our portfolio includes investments in 21 Least Developed Countries (LDCs), and nearly two-thirds of the total is directed toward low-income or lower-middle-income countries.