Financial inclusion & MSME financing
Introduction
In developing countries, micro, small and medium- sized enterprises (MSMEs) account for the major ity of all jobs. One of the most decisive factors for companies’ survival is access to capital.
Women are particularly hard hit, even though businesses owned by women employ a large proportion of the workforce. Investment is needed to enable companies to grow, employ more people and contribute to countries’ economic and social development.
Swedfund’s investments in Financial Inclusion are made in regulated banks and microfinance institutions in order to increase access to debt capital for entrepreneurs, MSMEs and low-in come earners, or in local investment platforms, local companies or through so-called private equity funds to increase access to equity capital for MSMEs. We apply similar requirements regardless of the investment form, which helps institutions, platforms and companies to develop their work on sustainability and corporate governance, which are important aspects of inclusive growth.
Swedfund makes thematic investments that, for example, promote women’s economic empowerment, digitalisation and healthcare, which aim to increase access to essential goods and services. Swedfund requires microfinance institutions to strengthen their work on responsible lending through the Customer Protection Principles (CPP), which certify that they actively promote responsible credit practices and management.
Areas
- Increased financing for micro, small and medium-sized enterprises, with a particular focus on under served groups and sectors such as smallholder farmers and women
- Financial inclusion through microfinance institutions
- Insurance solutions
- Digital business models
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