Impact Investment Manager Blue Orchard announces the launch of a COVID-19 support fund that aims to support more than 200 million jobs in emerging and frontier markets.
Swiss firm and member of the Schroders group, Blue Orchard Finance, launches the Emerging and Frontier Markets MSME Support Fund, according to a media release on Monday. The fund is backed by prominent public and private investors who will jointly support its launch with around $140 million.
The first of its kind, the fund will provide support funding to financial institutions and is expected to finance 20 institutions, serve three million micro-entrepreneurs and maintain 60 million jobs per each $100 million. The fund has a target size of $350 million. The fund will be further equipped with a dedicated technical assistance facility supported by SECO (Swiss State Secretariat for Economic Affairs) to fast track the recovery of MSMEs even in the most vulnerable sectors and geographies.
Reducing Poverty And Inequality Globally
The wide-ranging impact of the COVID-19 pandemic threatens to undo decades of progress made toward reducing poverty and inequality globally. Whereas Government support has been swift in most developed markets, it has largely been absent in emerging and frontier markets when it comes to supporting entrepreneurs and setting up effective support and recovery programs.
Though many financial institutions have weathered the current crisis without major disruption, others need support in order to keep financing MSMEs, which build the backbone of developing countries in terms of economic growth and employment. During these times, pioneering impact investors like Blue Orchard have a key role to play in ensuring that these businesses in developing countries are not left behind.
