Dear Friends,
We are pleased to report that in 2023 we continued to launch industry-leading funds, undertake initiatives to build the impact investment industry, and expand our unique business model. Our vision is to redefine impact investing and channel the power of financial markets toward sustainable, positive change for end-user customers.
Over the past 8 years, funds have cumulatively achieved the following estimated impacts:
- Financed energy access for over 31.89 million people Avoided over 24.82 million tons of CO2 emissions.
- Supported over 155,000 jobs.
- Supported over 55,000 jobs for women
We have achieved this cumulative impact by raising over $400 million and disbursing loans to over 130 companies in 22 countries. In addition to financing these companies, we have initiated codes of conduct and used an incremental scorecard system to track these companies in maintaining good environmental and social practices along with generating social impact.
In 2023, we achieved significant milestones:
- Commercial and Industrial Solar Green Bond B.V. The largest fund focused on small and medium enterprise solar companies in Africa, and it aims to finance over 220 MW of solar in manufacturing, agro-processing, healthcare, and education; reduce over 4 million tons of CO2 emissions; and support 44,000 jobs. It achieved Moody’s highest Second Party Opinion Green Bond sustainability rating. With a first close of $131mn, the Green Bond investors include: the International Finance Corporation, Global Alliance for People and Planet (Finland/IFC), FMO (Netherlands), DEG (Germany), BIO (Belgium), OeEB (Austria), DFC (US), Shell Foundation and Schmidt Family Foundation. We expect a second close led by private-sector investors.
- Industry-Building Efforts: Convened the ‘Kitchen Table Gathering’ in Den Hague, Netherlands, bringing together key public and private sector off-grid solar stakeholders for critical and collaborative discussions. This event aimed to unlock the industry’s potential, serve as a platform for dialogue, and forge solutions for the sector’s growth. The gathering underscored our dedication to catalyzing social and environmental change through collective action. The discussions during this event further led us to another innovative funding solution for off-grid solar companies, namely the Multi-Originator Securitization (MOSEC) fund.
- Asaan Ghar Finance: The first fintech affordable mortgage company in Pakistan continues to grow. Offers Islamic financing for low and middle-class people to help achieve homeownership and personalized customer service with a transformative approach to home financing. The company provides home purchase, construction, and balance transfer facilities with up to 85% financing, long tenures, and fast approval processes.
- Emerging Distributor Finance Fund (EDFF): Managed by SIMA, EDFF focuses on small and mid-sized off-grid solar and clean cooking last-mile distributors and aligns SIMA’s expertise with cutting-edge digitally enabled data to secure funding for expansion. It promotes gender equity and encourages these companies to actively champion the participation of women in their workforce and customer base. In 2023, EDFF secured additional funding from the African Development Bank to expand its work.
- SIMA Impact Foundation supported 14 scholars at 5 universities in Pakistan, Kenya, and Uganda. The Foundation empowers the next generation of leaders in impact investing from developing countries by providing not only full financial support but also practical internships and training experience to help develop impact investing leaders from the bottom of the pyramid markets.
We have built upon the groundwork laid over the past seven years, continuing to nurture a company culture that values transparency, logic, fairness, teamwork, entrepreneurship, and innovation.
None of these accomplishments would have been possible without the support and commitment of our investors, partners, and stakeholders. Looking ahead, we are excited about the challenges and opportunities that lie before us. With continued support from our stakeholders, SIMA remains confident in our mission to generate positive social and environmental impacts through good investments. Our journey is still at an early stage with tremendous potential ahead. It is with sincerity of purpose and innovative thinking that we will continue to change the status quo.
Thank you for being a crucial part of the SIMA story.
Warm regards,
