Low-income households and communities in emerging markets are most vulnerable to social and economic shocks. COVID-19 is such a shock and is felt across the globe.
Initiated under the banner of the Netherlands Platform for Inclusive Finance, the impact investors proclaim in an Investor Statement their continued support in response to the impact of the global COVID-19 crisis in emerging markets as follows:
- We remain committed to financing financial inclusion and MSMEs in emerging markets.
- We will work together as funders to continue to responsibly support our portfolio companies and their clients, both in terms of capitalisation and in the liquidity challenges that institutions may face.
- We will remain in close contact with our borrowers and investees and are committed to refinancing existing exposures where this is feasible and within our mandate.
- For those of us who are fund managers, we will communicate these goals to our investors, as their understanding will help support the desired outcome and the resilience of the assets in which they invest.
- We will work closely as a group and on a case by case basis discuss further support to the sector where needed and appropriate.
- We liaise and cooperate closely with supranational financial institutions to facilitate their support schemes in an optimal way.
- We will engage with our counterparts in other leading centers of impact investment and invite them to be supportive of these goals and to behave in a similar fashion.
Read the full Investor Statement.
Frank Streppel, Head of Global Investments at our Emerging Markets department: “Micro and small enterprises in developing countries and emerging economies are hit hard by the COVID-19 pandemic due to the lockdowns. From research and experience we know that these enterprises are flexible and quick to respond to new circumstances; they will be the driving force for social and economic recovery. Access to finance will be crucial for them to make that happen. Therefore, we are strongly committed to continue our long-term support to the financial inclusion sector.”
Read the full interview with Frank Streppel about the role of financial inclusion in addressing the impact of COVID-19.