General Information  

The Swiss Investment Fund for Emerging Markets (Sifem) was established on 1st July 2005 as a spin-off of the Swiss Confederation’s State Secretariat for Economic Affairs (seco). seco has invested some $200 million over the last 10 years in some 30 projects, mostly through private equity funds.

Sifem was created as part of seco’s long term strategy for poverty reduction as outlined in “Strategy 2006” and “Agenda 2010”, and Switzerland’s general commitments to the Millennium Development Goals. Both white papers reaffirm seco’s commitment to the idea that the private sector has a crucial role to play in sustainable development, and that public money can be used as an extremely effective catalyst in mobilising private investors who are normally hesitant to enter emerging markets.

During the interim phase, which will run until the end of 2006, Sifem is mandated to manage and advise on seco’s portfolio, while continuing to seek new investments. At the end of this phase, and following the necessary legislative amendments in the Swiss Parliament, seco will transfer the portfolio to Sifem but will retain oversight as principal shareholder.

Instruments

To better respond to the market, Sifem plans to diversify into loan instruments, credit guarantees and direct investments. In regards to fund investments, Sifem participates in the range of 15 – 30%, usually between 5 to 7 million US dollars. Direct investments range up to 7.5 million US dollars. Sifem invests in developing and transitional countries, as defined by the World Bank, with a GNP per capita of under 5,295 US dollars. A large part of the investments will be made in seco’s priority countries.