Swiss Investment Fund for Emerging Markets (SIFEM)

SIFEM is an investment vehicle that seeks commercial returns alongside developmental impact, while the Swiss Agency for Development and Cooperation (SDC) provides grants and technical assistance. The two entities do collaborate: SIFEM's LDC Risk Support program is co-financed by the SDC, blending grant capital with investment capital to absorb first losses in frontier-market fund structures.

SIFEM operates almost exclusively as a fund-of-funds, committing capital to third-party private equity, venture capital, and private debt fund managers active in emerging markets. Direct company investments are rare and typically occur only through co-investment vehicles attached to existing fund relationships. Its lean internal team is structured for manager selection and monitoring, not direct deal execution.

SIFEM's mandate covers developing and emerging economies globally, with the majority of commitments directed toward Sub-Saharan Africa, South and Southeast Asia, and Latin America. The institution publishes annual breakdowns by region, with Africa typically receiving the largest share of new commitments each year, reflecting Switzerland's long-standing development cooperation priorities.

SIFEM AG has a Board of Directors chaired by Jörg Frieden, with Mirjam Staub-Bisang appointed to succeed him in June 2026. The board reports to the State Secretariat for Economic Affairs (SECO) and the Federal Finance Administration (FFA), which jointly define the institution's strategic objectives and ensure alignment with Swiss development policy.

responsAbility Investments AG has been one of SIFEM's largest fund-manager relationships, particularly through vehicles focused on financial inclusion and climate finance in emerging markets. In 2022, responsAbility was acquired by UK-based M&G plc, which did not alter SIFEM's existing fund commitments. The two entities remain separate, with SIFEM acting purely as a limited partner in responsAbility-managed vehicles.

SIFEM applies EDFI's harmonized impact measurement framework and publicly reports on indicators such as jobs supported, gender equality metrics, and greenhouse gas emissions avoided. Its Technical Assistance Programme provides additional funding to portfolio fund managers to strengthen ESG and impact reporting systems, reflecting the institution's dual mandate of financial returns and measurable development outcomes.

SIFEM accepts unsolicited proposals from fund managers targeting its geographies and sectors, though in practice most new commitments result from its internal manager-sourcing process and long-standing EDFI network relationships. First-time fund managers can qualify, particularly when supported by the LDC Risk Support program, which was specifically designed to enable SIFEM to back emerging teams in frontier markets that lack institutional track records.