AfricInvest’s Financial Inclusion Vehicle (FIVE)
Introduction
Swedfund invests EUR 26 million in AfricInvest’s Financial Inclusion Vehicle (FIVE), a platform designed to support financial institutions across Africa.
The investment aims to increase access to financial services for underserved individuals and small businesses, with a focus on digital innovation, economic empowerment and inclusion.
Read more in our pressrelease: Improved access to financial services in Africa
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Reduced Inequalities
Reduce inequality within and among countries.
Sector
Financial Inclusion
Financial Inclusion invests in, amongst others, regulated banks and microfinance institutions to reach out more broadly and effectively.
Value creation
Impact
This investment contributes to improved access to financial services and products for underserved segments and is expected to support job creation, economic growth and sector development.
Additionality
Swedfund’s investment is financially additional as it is made in a challenging context associated with risk and where access to capital is limited. The investment is value additional through active value creation where issues such as financial inclusion, business integrity, and environmental and social issues are prioritised.
ESG
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company is required to materially comply with, inter alia: (i) all internationally recognised human rights (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG Risk
E&S risk categorisation is High Risk (FI-A) based on potential E&S risks and impacts inherent to the high-risk sectors in the lending portfolio and contextual risks in the target country.
ESG Mitigation Measures
Swedfund is supporting the company to further develop its environmental and social management systems (ESMS) to address issues related to sustainability processes. Swedfund is also supporting the company to develop its client protection principles/policies for investee companies and developing an overarching climate strategy.
Applicable IFC Performance Standards
IFC Performance Standards PS 1-2 are applicable for FIVE, and PS 1-4 are applicable for investees and for the activities funded by our investment.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.