SCBF The COVID-19 pandemic has had a devastating impact on low- and moderate-income populations, micro, small, and medium enterprises, farmers, and CICO agents around the world. With limited savings and assets to fall back on, coupled with a squeeze on access to finance, these segments faced severe disruptions in demand and payment cycles. This led to challenges related to business continuity and survival, and it needs appropriate responses at all levels to support their recovery in the a­ftermath of the crisis.

MSC, with support from the Bill and Melinda Gates Foundation, Metlife Foundation, Mastercard Foundation, and SCBF, conducted a research exercise to assess the impact of the COVID-19 pandemic. MSC examined the needs, attitudes, perceptions, and behaviors of micro and small enterprises, farmers, and CICO agents in several countries including Kenya, Uganda, India, Indonesia, Bangladesh, Senegal, and the Philippines. The research entailed an assessment of the impact of COVID-19 on key segments of the economy in these countries and the response of the governments and the private sector to deal with the pandemic. Further, MSC assessed the key changes in business operations, customer demand, impact on supplies, business expenses, and the coping strategies adopted, among other factors.

MSC and SCBF hosted two webinars to share the interesting insights from the research. 

SCBF has awarded grant funding to World Vision and VisionFund International to pilot the provision of insurance services to underserved populations in Ghana and Malawi.

The project will provide informal savings groups with insurance services that cover accidents, healthcare needs and lost income due to hospitalisation for group members and their dependents. When the project is fully rolled out, more than 87’000 Ghanaians and 272’625 Malawians will have access to insurance. >> more

Financial education is an essential part of smallholder empowerment. Education is a door-opener to financial inclusion, an important aspect of agricultural development. The Syngenta Foundation for Sustainable Agriculture, together with Ebdaa Bank, recently examined the financial habits and attitudes of 150 farmers across four states in Sudan. 

Funding for this first-ever such assessment and a related financial education initiative comes from the Arab Gulf Programme for Development and the SCBF. 

One of the main findings of the survey is that most participants understand the need to track their savings but declare not usually knowing how much money they have available for daily spending. When unexpected expenses do arise and participants are unable to cover them, they usually turn to friends or family for support, despite being clients of financial institutions. >> more.

SCBF Supports the First Revenue Accretive Agent Loan Product in Africa

Though Agent networks in Africa have increasingly become the delivery channel of choice for MFIs as they represent a low-cost alternative to brick-and-mortar branches. However, the sustainability and credibility of agents, and digital/non-branch financial services more broadly, faces a critical challenge; maintaining adequate liquidity. In Tanzania alone, studies have shown that up to 20% of transactions are denied due to liquidity issues. Current... >> more 

New Strategic Partnership with Swiss Re Foundation

SCBF is proud to announce a new strategic partnership with Swiss Re Foundation to help realise the Sustainable Development Goals and contribute to build resilient societies.

“Swiss Re has been a member of the SCBF since 2012 and a member of its Board of Directors since 2019. The Swiss Re Foundation will provide grant support to seven of SCBF’s insurance projects related to health, agriculture and recovery from catastrophic events, as well as two insurance-related outcome studies. By targeting... >> more

New Approved projects

Since the last Newsletter in the beginning of December 2020 we have approved new projects. Please find them, including factsheets  >> here

The Swiss and the U.S. Government joined hands to initiate the Safe and Resilient Migrant Workers (SRMW) project in Sri Lanka. On the 2nd of March, SRMW, which is part of SDC's 'Safe Labor Migration Program Phase IV', was formally launched. The project is designed to make overseas employment safer and more rewarding, both financially and professionally, by providing better occupational information and by increasing the skill levels of Sri Lankans who go abroad for work. 

>> Read more

With mutual understanding and cooperation towards improvement in technical vocational education and training (TVET) and creating better job opportunities for young people in BiH 

On the 23. February 2021, the Forum on Technical Vocational Education and Training (TVET) took place in Bosnia and Herzegovina, initiated by the coordination group of the largest donors in the field of TVET (DC dVET). Representatives of the European Union, Switzerland, Germany and Austria, together with representatives of ILO, EBRD and ETF discussed with local authorities and partners about the importance of quality technical vocational education and creating better job opportunities for young people in BiH. This was an opportunity to discuss the priorities and activities undertaken by partners at all levels of government, the private sector, schools, donors and international development partners to make TVET in BiH responsive to labor market needs and foster the employability, inclusion and prosperity of individuals and society as a whole.

In an important step towards EU integration, the Council of Ministers of BiH recently adopted a new strategic document for the field of vocational education and training "Improving the quality and relevance of vocational education and training in Bosnia and Herzegovina - Based on the Conclusions from Riga (2021-2030)". 

Both donors and BiH governments’ initiatives have been developed against the background of a very challenging labour market situation for youth in BiH. In BiH, the lack of a qualified work force in industry, particularly SMEs, has become a crucial factor limiting economic growth. It hampers foreign direct investment that is dearly needed in BiH.  Young people as entrants into the labour market after having finished vocational training (middle school) face enormous difficulties to find a job in their profession. The mismatch between demand and offer in the labour market is to a very large degree to be attributed to weak performance, inefficiency and low quality of the vocational training systems in the country. Middle schools do not deliver a job qualification that complies with labour market requirements.

Innovative solutions are essential to meet the challenges during the Covid-19 crisis. Three examples from Latin America show how the projects Swisscontact implements have adapted to the new circumstances and demonstrated resilience in the face of the pandemic. In El Salvador, complementary carpentry training for returning migrants is being adapted to the new market conditions. Master builders in Peru are developing digital skills in order to improve safety during construction projects. In Bolivia, mechanical engineers designed and developed a respiratory assistance device for families in rural parts of the country.

>> Read more

DevLearn’s online training course on the DCED Standard for Results Measurement, running 5th – 30th April 2021, shows you how to measure and use results using the DCED Standard for Results Measurement, a practical framework used by over a hundred programmes worldwide. Online training is cost-effective, interactive, and entertainingly delivered through videos, guided exercises, and group discussions. The course lasts four weeks and is made to be delivered online, so you can learn alongside your normal working week. Click here to find out more and sign up.

his 2.5-hour (150 minutes) interactive seminar will cover:

• How blended finance is used to mobilize additional private sector financing for health and education in developing countries;
• Case studies and trend analysis on blended finance transactions in health and education; and
• Recommendations to practitioners on leveraging blended finance effectively.

Historically, Convergence has not seen sustained activity in blended finance for health and education, with both sectors combined accounting for less than 10% of the blended finance market. More recently, though, blended finance activity has grown in both sectors - in part due to the COVID-19 pandemic. Among transactions currently fundraising on Convergence’s matchmaking platform, 19% target the health sector and 18% target the education sector. In this seminar, Convergence members will share their insights, and participants will discuss current initiatives in small groups.

This is the last seminar in our five-part series “Blended Finance in Select Sectors". You are welcome to register even if you have not attended any of the preceding seminars.

The seminar has limited space to ensure an intensive and practice-driven learning experience. Each Convergence member organization has two complimentary seats in each seminar, please apply the discount code you received by e-mail. Non-members can register here for a fee of USD150.

This publication serves as a reference guide for financial inclusion practitioners, researchers, and other stakeholders interested in applying WEE measurements to their work. The short (nine pages) guide maps out twelve WEE tools that allow users to quickly preview their content and assist them in selecting or developing measurement frameworks and approaches that meet their needs. 

Open banking regimes allow a wide range of users, including fintechs, to access the customer data locked inside banks and other financial institutions to develop innovative financial products and services that are lower cost and better suited to the needs of consumers. While many policy makers and regulators in emerging and developing markets recognize the potential benefits of open banking regimes, they are uncertain how to design them in ways that support their financial inclusion objectives. For this paper, CGAP has examined 12 regimes and identified the critical design components that are most likely to serve the needs of poor people.

Do you rather listen to the webinar? Find the recording of the webinar (October 14th, 2020): duration 1 hour

Alliance2015 members jointly conducted a survey in 25 countries, covering 16,000 women, men and non-binary people in a two-month period in the final quarter of 2020. The study was conducted when the pandemic was quite advanced and captures the deep impacts of COVID on lives and livelihoods.

For a blog post and a short video of the findings >>here

Work is the main way to achieve full participation in society and promote equal opportunities and in the case of people with intellectual disabilities, this becomes especially important as promote autonomy, self-regulation and economic independence. To contribute to inclusion, the Formación Técnica Profesional Project in Bolivia has created a Support Guide for Labour Inclusion for companies, that will allow the employer to assess the skills and abilities.

The Guide is also accessible online.

DC dVET organizes regularly webinars on specific topics related to dual VET. On their homepage, you can find the interesting inputs by different experts as well as other relevant documents.

2020, the following topics were covered:

- Companies Engaging in Dual VET: Do Financial Incentives Matter? Options, Pros and Cons

- Financing of (Dual) VET

- Cost-Benefit Analyses for Companies in (Dual) VET

- Matching VET with Labor Market Needs – How to Assess the Skills Demand

- Dual VET in Development Cooperation – Key Elements and Principles

It is estimated that three out of every 10 Nicaraguan families live in inadequate conditions, either due to overcrowding, deficient drinking water and sanitary sewage services or poor infrastructure quality. Meeting these needs takes time and financial resources, and often, the urgency of finding decent housing forces them to move without technical advice. 

In response to this reality, the Competencias para Ganar program, sponsored by the Swiss Cooperation in Central America and facilitated by Swisscontact, teamed up with the Nicaraguan Construction Chamber to present a basic good practices guideline for housing construction and maintenance. 

The guide provides relevant information such as budgeting, investment planning, hiring suitable personnel, adequate materials and recommendations for the maintenance of electrical and sanitary systems. The document is used also for training of trainers as Competencias para Ganar has developed courses in Vocational Training Centers for informal workers. Thanks to this, the workers strengthen their technical skills and certificate their knowledges, which is an advantage for those who request their services.  

Alliance2015 members jointly conducted a survey in 25 countries, covering 16,000 women, men and non-binary people in a two-month period in the final quarter of 2020. The study was conducted when the pandemic was quite advanced and captures the deep impacts of COVID on lives and livelihoods.

For a blog post and a short video of the findings >>here

On March 11th 2021, a webinar on Tourism and Covid-19 took place. With the participation of more than 70 e+i network members from all over the world, facilitated by Carsten Schulz from KEK-CDC Consultants, two presentations on “Good practices on innovation and digitalization” have been held. 

>> Read the short summary paper of the agenda and the essences of the presentations.

>> Have a look at the webinar documentation!

Over the course of three months, a Working Group comprised of over 50 organizations explored the use of blended finance in two important segments of water service delivery and sanitation: (1) repair and maintenance of water infrastructure in less densely populated areas; and (2) fecal sludge management. Commissioned by the Swedish International Development Cooperation Agency (Sida), this Outcome Document highlights the Working Group's recommendations. \n\nCurrently, there is greater demand for (and hence a greater prevalence of) blended solutions with design and preparation-stage grants, Technical Assistance, and results-based financing. As business models mature and the enabling environment for water and sanitation services improves, more solutions that make use of guarantees and concessional debt or equity within a blended capital stack will emerge.\n\nFor fecal sludge management and water infrastructure maintenance (and many other water and sanitation services), public funding, whether through taxes or transfers, will remain critical. But attracting private capital to investable transactions will allow traditional development aid and government funds to refocus on projects and enterprises that should not or cannot attract private capital.

This 2020 edition of the UNCDF-OECD Blended Finance in the Least Developed Countries (LDCs) report analyses the state of blended finance in LDCs and assesses the role that blended finance can play in recovering and building forward better from the COVID-19 crisis. The report also provides a range of expert insights on the opportunities, innovations and risks of deploying blended finance in LDCs, including from Convergence, and proposes an Action Agenda to chart a new path to further the mobilisation of support and resources for LDCs. Find the report here.

If blended finance is to advance from mobilizing “billions to billions” to “billions to trillions” to achieve the global sustainable development goals (SDGs), institutional investments must occur at scale in developing countries. Blended finance is arguably more important than ever. With institutional investors likelier to focus on their home markets due to the impact of the COVID-19 pandemic, Convergence believes blended finance will serve as an important tool in showcasing investable opportunities and providing the protections that can draw institutional investors into EMs at scale. 

Convergence’s latest Data Brief explores how institutional investors have participated in blended finance to date, and presents insights drawn from interviews with key industry stakeholders. Read more here.

Members of the Organisation for Economic Co-operation and Development’s (OECD) Development Assistance Committee (DAC) have recognised that there is a lack of shared terminology and understanding of modalities for private sector engagement in development co-operation. As part of the peer learning review on working with and through the private sector in development co-operation, DAC members requested the creation of a shared set of key terms and definitions, as well as a typology for classifying private sector engagements to facilitate the use of shared terminology and common understanding among DAC members. Read more here.

In this report, Credit Suisse has joined forces with Responsible Investor (RI) for an in-depth assessment of how investors view biodiversity. With the topic rising up the agenda in the investment world, the report explores the challenges around investing in biodiversity and how to address them.

The Little Book of Investing in Nature aims to energise that dialogue by clearly laying out options for financing biodiversity conservation. While some measures to protect biodiversity may come at an economic cost, others are likely to generate strong returns, economic and otherwise. This book presents evidence that, if a well-considered series of measures to protect nature is implemented, nature may be able to pay for itself.

The report’s recommendations identify opportunities to adopt sustainable finance innovation to accelerate the rice sector’s sustainable transition. It proposes three innovative finance solutions to support sustainable rice production in line with countries’ Paris Agreement climate targets—these include issuing ‘rice bonds’ and leveraging global climate finance as practical pathways to attract private sector investment for climate-smart rice production.

This sustainable finance brief offers banks, investors and other financial institutions a clear view of how to better consider the risk scenarios in their ESG investment policies, and the innovation opportunities to actively collaborate with development finance banks and governments to pilot a new generation of impact investment vehicles, from “Blue Peace Bonds” to blended finance and sustainable infrastructure insurance.