SIFEM AG

Overview

SIFEM AG is the Swiss government's development finance institution, investing in emerging markets to promote economic growth and poverty reduction. It provides long-term financing to small and medium-sized enterprises (SMEs) and other fast-growing companies in developing countries through local financial intermediaries. This approach aims to create secure and permanent jobs, reduce poverty, and foster sustainable, inclusive, and resilient economies. SIFEM's investments are aligned with international environmental goals, addressing the global climate crisis and supporting emerging markets in achieving low-carbon economic growth. The institution's portfolio includes investments in sectors such as infrastructure, healthcare, education, renewable energy, and agribusiness. SIFEM's investment strategy focuses on various stages of company development, including early-stage, growth, late-stage, pre-IPO, buyout, turnaround, and distressed situations. By the end of 2023, SIFEM's investment portfolio amounted to USD 454 million, financing directly and indirectly around 600 companies in over 75 countries. Since its inception, SIFEM has made commitments of almost USD 1.3 billion. The institution is wholly owned by the Swiss Confederation and operates under the strategic guidance of the Federal Council. SIFEM's mission is to contribute to the creation of decent jobs and the reduction of poverty by supporting promising and sustainably operating companies in developing and emerging economies. In 2024, SIFEM achieved its highest investment volume since its inception, with a record investment volume of USD 173 million, mobilizing USD 36.2 million in private capital. This success underscores SIFEM's continued dedication to fostering sustainable development in emerging markets. The institution's risk management system complies fully with the requirements of the Swiss Code of Obligations and was deemed appropriate by the external auditor. An audit conducted by the Swiss Federal Audit Office in 2024 confirmed the adequacy of risk management at the operational level. However, it recommended further development at the corporate level, with full implementation planned by mid-2025 and subject to an external audit by the end of 2026.

Investment Focus

• Investments must be in developing and emerging countries
• Focus on small and medium-sized enterprises (SMEs) and fast-growing companies
• Alignment with international environmental goals
• Contribution to sustainable, inclusive, and resilient economies
• Creation of decent jobs and reduction of poverty

Portfolio Companies