Swiss Investment Fund for Emerging Markets (SIFEM)
Last updated on 15 Mar 2024
Key facts
A private limited company owned by the Swiss federal government, SIFEM is an important instrument in fostering private sector development in developing and emerging countries.
PUBLIC
2005
Credit rating (sovereign) (S&P)
AAA
Foreign currency
Authorizations and exposure
FY 2022 exposure top sectors
Financial intermediation
40%
Energy and water supply
12%
Healthcare
9%
Consumer goods
9%
Consumer services
6%
FY 2022 exposure
Products
- SIFEM makes loans available to local banks, leasing companies, microfinancing companies, and other financial institutions.
- Financing is generally granted on a long-term basis at market conditions
- Long-term equity capital positions in funds that acquire an interest in local SMEs and fast-growing businesses
Policies
- Investment principles:
- Leverage: SIFEM, through its investments, seeks to optimize the flow of additional capital from private and other institutional investors for the benefit of its companies
- Subsidiarity: SIFEM provides financing that is either unavailable on the market or not available at reasonable terms and conditions, or in sufficient amounts or maturity
- Complementarity/Additionality: SIFEM makes investments that not only fill a gap in financing but also add tangible value, notably in the form of know-how transfers and the provision of technical support to funds and portfolio companies
- Sustainability: SIFEM adheres to the basic principles of financial, economic, social and environmental sustainability in its investment activities
- SIFEM invests primarily in sectors that are particularly important for the economic development of partner countries
- These include manufacturing, transport, storage, communication, wholesale and retail trade, production of renewable energies, health, and education
- SIFEM only invests in funds and financial institutions that not only uphold high standards in environmental, social, and corporate governance, but oblige their portfolio companies to uphold the same standards
- It adheres to the standards and guidelines set by the UN, ILO, IFC, OECD, and EDFI
- SIFEM will occasionally make direct investments in financial institutions
- With the consent of the Swiss Federal Council, the fund management and portfolio management functions were outsourced to the specialized investment adviser Obviam in 2011
- Excluded sectors include, but are not limited to, Forced labor or child labor, illegal materials or activities, cross-border trade in waste products, and radioactive materials
News
- 2023: The National Council unanimously adopted the draft Federal Act on the Development Finance Corporation SIFEM
- 2023: SIFEM joins platform to facilitate investments in Ukraine's reconstruction
