HOW WE MAKE MONEY CARE MORE

Critical components of this ecosystem are microfinance lenders, social impact funds, and banks. Together, they improve access to finance for micro and social enterprises, and attract private capital into the sector.

However some of these innovative actors could benefit from investment themselves. Whether to open new operations, recruit specialised staff or even to improve their processes, investing in the ecosystem helps it thrive, and helps to keep it sustainable. Our focus is not on a quick fix, but to develop long-term market infrastructure.

Some of the banks and funds are pioneers in their geography, for example, Creas Impacto, in Spain. Thanks to the EIF’s capacity-building efforts, the European ecosystem can expand and deepen its reach.

All of the social impact programmes managed by the EIF help to build a financing ecosystem because our guarantees and equity improve access to finance for SMEs and ‘crowd in’ private investors.

Some programmes take this one step further and provide additional liquidity to micro-lenders and providers of social finance enabling them to scale up their businesses and reach more micro and social enterprises.

Sometimes a more dedicated programme is necessary to stimulate the development of a local social finance ecosystem and to make this happen, we partner with national promotional institutions.