Financial Inclusion
Introduction
In developing countries, small and medium sized enterprises account for the majority of all jobs and drive economic and social development. Lack of financing is one of the most limiting factors for these companies’ opportunity to grow.
Financial Inclusion invests in, amongst others, regulated banks and microfinance institutions to reach out more broadly and effectively. In addition to enabling increased lending to the banks’ customers, we also help develop institutions’ work on sustainability and corporate governance, which are important aspects for inclusive growth.
Swedfund also invests in microfinance institutions that provide microloans to entrepreneurs, small businesses and and low income
earners. We require microfinance institutions to comply with the Customer Protection Protection Principles (CPP) which certify that they actively work with responsible lending and management. For example, pricing should be transparent, excessive indebtedness should be avoided, debts are collected responsibly and personal integrity is respected.
Areas
- Access to credit (direct and indirect) through financial institutions and microfinance institutions.
- Insurance.
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