Select Africa
Introduction
Swedfund invests in improved access to financing for civil servants in Eswatini, Lesotho and Malawi through an up to 15 million USD loan to the microfinance institution Select Africa.
Swedfund’s loan aims to support low-income individuals, who often face restrictive credit policies from banks and other financial institutions. The investment aims to increase the possibilities for low-income individuals to secure financing that supports their livelihoods and productive activities, such as starting a small side business, expanding farming, covering education costs or building a house. This contributes to human development for many families and, in turn, fosters potential for local economic growth and more jobs,
Read more in our press release: Improved access to loans for civil servants in sub-Saharan Africa
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
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 improves access to financing for civil servants; helping them invest in goods and services that support their livelihoods and productive activity such as starting a small business, expanding farming, or covering the cost of education. By enabling these investments, Swedfund contributes to improving the resilience, well-being and economic stability of Select’s clients and their families, helping to reduce inequalities.
Additionality
Swedfund’s investment is financially additional by taking an active role in investments and investing in risky markets, participating in governance structures, promoting social and environmental standards and supporting enterprise improvements with technical assistance.
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 categorization is Medim Risk (FI-B) based on potential risks related to labor conditions and occupational safety and health, as well as contextual client protection risks related to the microfinance sector.
ESG Mitigation Measures
Swedfund is supporting the company in developing its E&S policy and processes, in aligning its labor practices with ILO standards, and in adopting processes in line with best practice standards under the Client Protection Principles.
Applicable IFC Performance Standards
Standards: IFC PS 1-4 are applicable.
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.