Impact under the SIFEM mandate

Under the SIFEM mandate, Obviam seeks to drive entrepreneurship, create jobs, deepen and strengthen financial sectors, and drive economic growth in target countries. Inadequate access to financing continues to be one of the most significant impediments to the creation, survival, and growth of SMEs. In many emerging and frontier markets the financial sector is characterized by a narrow range of institutions, weak competition, low penetration, and unsophisticated services. The SIFEM mandate seeks to address many of these issues, and Obviam has been measuring impact under this mandate for the last six years.  

The development impact score attributed to each investment incorporates data from eight development indicators, which in turn are qualified by a total of 42 sub-indicators:

1) Employment,
2) Gender equality,
3) Training,
4) Mobilization of local capital and savings,
5) Financial sector diversification,
6) Credit diversification,
7) Institution building, and,
8) Enterprise growth and improvement.

Obviam undertakes development impact assessment at various points in time during the life of an investment. This process involves determining anticipated development impact during due diligence (pre-investment) and actual development impact every two years thereafter, until the end of the investment period. In this manner SIFEM benchmarks its investments over time to understand to what extent projects have lived up to expectations.  This is not only practical from a development-focused viewpoint, but also from a financial sustainability and due diligence viewpoint, providing critical insights to the quality of investment decision making.