BlueOrchard, an impact investment manager connected to Schroders, has launched a fund designed to provide financial support to medium and small businesses (MSME) in emerging markets hit by Covid-19.
The BlueOrchard Covid-19 Emerging and Frontier Markets MSME Support Fund has so far gathered $140 million along with the backing of Schroders and development finance bodies in the UK, US and Japan.
BlueOrchard said other backer including the German Federal Ministry of Economic Cooperation and Development (BMZ) are expected to join after due diligence.
The fund, which qualifies under the ‘2x Challenge’ criteria devised by the development agencies of the G7, is targetting total investment of $350 million. with which it intends to finance 20 institutions and three million micro-entrepreneurs while saving 60 million jobs per $100 million in capital.
According to the fund, while government support has been apparent in developed economies via various stimulus packages and employment furlough schemes, there has been an absence of support in emerging and frontier markets.
“Unprecedented times require decisive action and innovators who go ahead,” said BlueOrchard chief executive Philipp Müller. “We are very thankful and proud that we successfully brought together a renowned group of public and private actors at record speed to support those most in need.”
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