AECID invests 15 million euros to promote SMEs in Sub-Saharan Africa

The Diplomat The Spanish Agency for International Development Cooperation (AECID) is going to invest 15 million euros in Global Social Impact Investments to promote small and medium-sized businesses in Sub-Saharan Africa. Global Social Impact Investments SGIIC, SAU (GSI) is a Spanish investment fund manager oriented towards companies that generate a positive social and environmental impact. Founded in 2020 and registered with the National Securities Market Commission (CNMV), GSI specializes in identifying profitable and sustainable companies that contribute to the socioeconomic inclusion of people in vulnerable situations. GSIG Africa RAIF invests in companies with high social and environmental impact in Sub-Saharan Africa that contribute to improving the livelihoods of the most vulnerable people in the region, mainly small livestock and agricultural producers and their families. AECID's investment will be carried out through the Fund for the Promotion of Development (FONPRODE), managed by the agency with the support of COFIDES as investment advisor. In addition to the direct investment of 15 million for the GSIF Africa RAIF fund, AECID will provide 3.5 million euros in technical assistance to improve and strengthen the capabilities of the invested companies, as well as to more rigorously measure the contribution and additionality of investments on the company and its users. Since its launch in December 2020, GSI's African investment fund portfolio operations have driven an average 39% increase in income for beneficiary communities and the creation of nearly 3,000 new stable jobs. In addition, more than 15,000 jobs have been maintained and the activity generated has directly benefited more than 6 million people, of which more than 75% are women, according to the latest impact metrics prepared by GSI. "The Government of Spain has the firm intention of continuing to promote impact investment with the collaboration of public and private entities, to achieve the highest levels of development for all countries in Sub-Saharan Africa and thus guarantee not only the stability of the region but also also the sustainability of its economic growth and the dignity of all its inhabitants,” declared the Secretary of State for Cooperation and president of the AECID, Eva Granados. According to María Ángeles León, co-founder and president of GSI, “investment in small and medium-sized impact companies is an indispensable tool to generate wealth and employment sustainably in Sub-Saharan Africa, thus collaborating in the creation of a fairer and more prosperous future in the region."

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