CFC response to COVID-19 pandemic - Update 17 August 2021. Read more.
Working for a purpose
Impact is at the core of the CFC. As an impact investmentfund dedicated to alleviation of poverty, CFC iscommitted to create positive impacts under all circumstances.Our mission is to work out an impact whichis measurable using impact weighted matrix. As animpact investor, we work around a core set of beliefsand principleswhich only got revalidated due to widespreadCOVID-19 related devastations. During COVID-19, not everyone is affected in the same way. Poor,women, and youth proved to be far more vulnerablethan others. SMEs and smallholders in the developingworld were found to be most affected.
Operating as an impact investor, the CFC, which financesthe communities which found to be more vulnerable and assuch most affected, came to experience that if there were aright moment to make more interventions and accompanyinginvestments in the developing world, this is the time.
Be local, keep it small
Whatever the future holds, our experience guides us to therealizationthat it will be nothing like the past. At this time,not only impact has to be measurable and weighted withina framework of weighted matrix, it also has to be local andimprovised where required. Doing more of the same is nolonger an option. Rather than throwing big money to bigand mega projects, developing countries will be betterserved with more focused and small interventions. Eachintervention has to be tailored so that weighted matrix isnot only achievable, it has to be an innovative interventionwhich have the potential to achieve higher social andeconomicimpact in the country/region.
The CFC understands that to act effectively and crediblyas an impact investor, the Fund must have a robust andefficient impact measurement and management system.In this regard, in October 2018, CFC’s Executive Board hasapproved the new impact strategy of the CFC.
CFC impact management practice
CFC’s Impact Strategy Framework – The Sustainable Development Goals
The Sustainable Development Goals (SDGs) are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. Building on the Millennium Development Goals, they balanced the three dimensions of sustainable development: economic, social, and environmental. The goals are interconnected, but at the base of their heart they aim to tackle the root causes of poverty and set the world on a more prosperous and sustainable path.