CDC backs BlueOrchard's Covid-19 support fund
BlueOrchard Finance, an impact investment manager and member of the Schroders Group, has launched the BlueOrchard Covid-19 Emerging and Frontier Markets MSME Support Fund. 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 is backed by CDC (the UK’s development finance institution), DFC (U.S. International Development Finance Corporation), and JICA (Japan International Cooperation Agency). KfW, on behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ), is currently in due diligence stage and intends to join the circle of investors.
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.
Philipp Müller, BlueOrchard’s CEO said, “Unprecedented times require decisive action and innovators who go ahead. We are very thankful and proud that we successfully brought together a renowned group of public and private actors at record speed to support those most in need. For 20 years, we remain true to our mission to reduce poverty and inequality globally. The impact of the pandemic has made our conviction even stronger.”
Maria Teresa Zappia, BlueOrchard’s chief impact and blended finance officer and deputy CEO said, “We thank our partners for their resolve and support for a key facility which will allow mitigating some of the challenges of the pandemic and we are proud of this remarkable collaborative effort of our teams across the globe.”
Nick O’Donohoe, chief executive officer, CDC Group said, “We are pleased to have played a key anchor role in the fund, enabling it to reach this timely launch. The fund will deploy capital at scale to make a marked difference for millions of small entrepreneurs and support many more livelihoods in markets that have been heavily impacted by the pandemic. In these current times, it is vital that financial support is made available to help preserve, strengthen and assist MSMEs to rebuild, in order to contribute to the long-term growth and economic stability in emerging markets.”
“We are pleased to collaborate with BlueOrchard and other partners to address this challenge for frontier and emerging markets,” said DFC CEO, Adam Boehler. “By providing capital to institutions that serve micro, small and medium-sized business, we help stabilise industries, safeguard jobs, and speed recovery.”
Kitaoka Shinichi, JICA President said, “One of our missions is to achieve human security. Its core is to ensure everyone the right to live in dignity. In pursuit of our mission, JICA is working to build more resilient societies that enable the protection of people’s lives under the Covid-19 pandemic. As part of our efforts, JICA has joined the BlueOrchard Covid-19 Fund. In partnership with BlueOrchard, we have supported about 120,000 MSMEs mostly owned by women entrepreneurs in Asia through the Japan ASEAN Women Empowerment Fund since 2016. I believe that the financial opportunities offered by this fund to MSMEs in low – and middle-income countries will enable their fast recovery from the Covid-19 crisis and future growth.”
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