SIFEM - Swiss Investment Fund for Emerging Markets

Indicators

SIFEM uses the Corporate Policy Project Rating (GPR) developed specifically by the German Investment and Development Corporation (DEG) as well as its own specially developed indicators to assess and measure the development impacts generated by its investments. The following development indicators, amongst others, are used to appraise the investments: 

  • Employment: The proportion of jobs created and maintained by SIFEM 
  • Equality between men and women: Positive effects stemming from affirmative action towards women such as the promotion of women to leadership positions. The measures need to go beyond the requirements of local legislation.
  • Training and professional development: Offers to employees for training or professional development 
  • Mobilization of additional funding: Amount of additional capital released by other private, public and institutional investors. 
  • Mobilization of local capital for investment: Amount of local capital which complements SIFEM investments. 
  • Diversification of credit: Provision of finance to business segments (for example SME’s, microfinance, export financing) which have been insufficiently serviced in the past.  
  • Establishment and development of fund management companies: Support provision to funds and financial institutions by SIFEM through a strengthening of the organizational structure and management, through changes leading to improvements in monitoring systems and risk management and the establishment of an ESG management system. 
  • Development of portfolio companies: Support provision to portfolio companies by fund managers, for example during the introduction of new technologies, improvements to production, marketing, distribution, customer service, corporate governance, environmental and social standards, as well as accounting and reporting. 
  • Taxes: The amount of taxes that are generated by the investment for local governments.

The GPR is used throughout the life cycle of an investment for the collection and analysis of data. Prior to the investment a list of the expected development effects is compiled. During the investment term the actual effects are measured every two years and then compared with the objectives previously set.