In Kazakhstan, women play a significant role in business, with nearly half of the country’s SMEs led by women.  While women entrepreneurs are increasingly becoming a vital part of the business landscape, they still encounter certain challenges in accessing the financing necessary for growth. 

To address this, Incofin Investment Management, through the Global Gender Smart Fund (GGSF), has partnered with Solva, a Kazakhstani microfinance institution, to implement a gender action plan with a focus on developing tailored financial products specifically designed for women-led businesses. With an initial investment of USD 5 million, Incofin has invested in Solva’s accessible financial products, mentorship, and financial literacy resources for women-led micro and small businesses. Together, they aim to set a foundation for sustained economic growth led by resilient women entrepreneurs. 

Solva’s inclusive approach 

Founded in 2017, Solva combines fintech innovation with an extensive branch network to provide accessible financial solutions. Serving over 127,000 borrowers through 113 branches and a user-friendly digital platform, Solva has become a benchmark for inclusive finance in Kazakhstan. With nearly 70% of its MSME clientele being women-led businesses, Solva is committed to advancing gender equity. The “Women in Business” initiative has provided mentorship, networking, and financial literacy resources to over 14,000 women, helping them navigate business challenges and drive economic growth in their communities.  

This partnership with GGSF and Incofin strengthens our mission to provide women entrepreneurs with accessible, flexible financial solutions that have clear and measurable economic and social impact across Kazakhstan,” said Konstantin Barabanov, CEO of Solva Group. 

Tailored loan solutions  

With the support of GGSF and Incofin, Solva is committed to deliver on its gender action plan —  with a focus on developing tailored financial products specifically designed for women-led businesses. This plan includes flexible loan structures and customized repayment options that address the unique financial needs of women entrepreneurs, helping them achieve greater financial stability and growth. By creating products that align with the operational realities of women in business, Solva aims to provide critical tools that enable women to expand their enterprises and contribute to Kazakhstan’s economy in meaningful ways. 

Stories of women thriving with Solva’s support 

Solva’s Women in Business initiative has supported numerous women. Here are just a few of them: 

Gulzhan, founder of a chain of childcare centers, overcame the hurdle of lack of collateral with Solva’s loan and mentorship. Today, her centers are thriving, creating stable jobs in her community. 

 

 

 

Nurzhamily, owner of multiple beauty salons, secured seasonal loans through Solva to match her salon’s revenue cycles, allowing her to expand her brand and employ more local women. 

 

 

 

Raushan, owner of a branded merchandise business, needed funding to fulfill a large contract. Solva provided her a tailored loan with business advice, enabling her to expand production and become a leading supplier in her sector. 

 

 

Nurgul, running a local shop in Almaty, used Solva’s financing to expand her inventory and serve her community better, keeping her business strong and relevant. 

Looking ahead 

Solva and Incofin Investment Management are building on their partnership through GGSF to innovate Solva’s financial offerings further, reinforcing its standing as a leader in gender-focused finance. Its focus will enable more women entrepreneurs to turn their visions into reality. 

Incofin Investment Management is proud to announce that the Incofin Climate-Smart Microfinance Fund has received the coveted LuxFLAG Microfinance Label for the period of 1 October 2024 to 30 September 2025. This prestigious certification comes from the Luxembourg Finance Labelling Agency (LuxFLAG), a non-profit organization based in Luxembourg that provides internationally recognized labels to funds adhering to rigorous sustainable investment strategies. 

 The LuxFLAG Microfinance Label is known globally for its rigorous standards in evaluating the social and financial impact of microfinance funds. This label signifies that Incofin’s fund is not only financially viable but also committed to advancing financial inclusion, climate-smart practices, and positive social outcomes for underserved populations. 

As LuxFLAG states,  

 “The LuxFLAG Microfinance Label is known for its high standards and comprehensive evaluation of the microfinance investment fund’s approach. The Label was launched in 2006 with the creation of LuxFLAG and launched the world’s only Microfinance Label. It underscores the effective integration of social performance considerations and financial inclusion principles, reflecting key criteria essential to the LuxFLAG Microfinance Label’s eligibility criteria.”  

Why the Incofin Climate-Smart Microfinance Fund? 

The Incofin Climate-Smart Microfinance Fund is designed to promote financial inclusion while addressing the critical issue of adapting to climate change. By financing small and medium-sized enterprises (SMEs) and low-income households—particularly those involved in agriculture and climate-smart initiatives—the fund creates pathways for both economic and environmental sustainability. 

This recognition from LuxFLAG comes at a critical time, when the fund is actively raising capital. The award of the LuxFLAG Microfinance Label demonstrates that Incofin’s Climate-Smart Microfinance Fund is not only delivering financial returns but also generating tangible social and environmental impact. 

We are proud to announce that Dina Pons, Managing Partner at Incofin Investment Management, has been selected to join the Operating Principles for Impact Management (OPIM) Advisory Board. This prestigious appointment highlights her commitment to promoting transparency, accountability, and integrity in impact investing.  

Dina is eager to contribute to OPIM’s mission of creating a unified framework for impact investing that combats greenwashing—a growing concern where companies misrepresent their environmental or social impact. In Dina’s words, “I am honoured to join the OPIM Advisory Board and look forward to working closely with my impact investment peers to promote the importance of the Operating Principles for Impact Management (OPIM). To fight against greenwashing, there is nothing stronger than a set of clear and objective standards and a community of likeminded impact investors, proving it’s possible to reach financial and impact returns together.” 

This appointment comes at a crucial time when transparency in the impact investment sector is more critical than ever. With growing interest in ESG (Environmental, Social, and Governance) investing, ensuring that companies genuinely deliver on their promises is vital for the credibility and growth of the sector. The Operating Principles for Impact Management provide a robust framework to ensure that impact investors can measure, manage, and verify their impact, minimizing the risk of greenwashing. 

As part of this new role, Dina will work alongside a diverse group of experts from leading global institutions to enhance the systems in the impact investment market. The advisory board plays a pivotal role in guiding the evolution of the OPIM framework, making sure it remains relevant, rigorous, and adaptable to the industry’s needs. 

Dina’s involvement with OPIM is a testament to Incofin’s long-standing commitment to achieving financial returns with meaningful, measurable impact – with uncompromising credibility. We look forward to seeing her impact in this new role as she continues to advocate for the values that lie at the heart of responsible investing. 

Earlier this year, Incofin Investment Management was honored at the Ethical Finance Awards 2024, receiving two awards:

🏆 Best Impact Investment Management Firm 2024 – Belgium
🏆 Diversity & Inclusion Excellence Award 2024

We are incredibly proud of this recognition and want to extend a heartfelt thank you to Wealth & Finance International magazine for these awards. A special thanks goes to our colleagues and partners, whose hard work and dedication make our mission possible.

September 2024 

Incofin Investment Management announces the first three investments made through the new Nutritious Foods Financing Facility (N3F), launched earlier this year. Each selected company has received debt financing in the range of USD 0.5 million – USD 1 million to scale up their production, increasing their capacity to supply lower-income local households in Sub-Saharan Africa with nutritious food. Further, they will each be supported with tailored technical assistance managed by the Global Alliance for Improved Nutrition (GAIN). 

The announcement coincides with the Africa Food Systems Forum in Kigali, Rwanda, showcasing the role of innovative financing to transform food systems. 

Selected Investments: Local Enterprises 

Shalem Investment Ltd, a Kenyan SME active in aggregating smallholder farmers’ produce and the fortified flours business, is the first beneficiary. Shalem provides local communities with affordable, high-quality fortified maize and wheat flour, crucial for staple foods like Ugali and porridge. Fortified flours can play an important role in addressing malnutrition, as they provide an affordable source of micronutrients, especially in rural areas of low- and middle-income countries like Kenya, where access to diverse and nutritious foods may be limited, and for low-income populations. 

Good Nature Agro, an innovative Zambian SME, is the second recipient. Specializing in legumes and seeds, Good Nature Agro partners with over 15,000 smallholder farmers, significantly impacting local food security.  Good Nature Agro has been recently ranked among the fastest growing companies in Africa by the Financial Times, demonstrating its capacity to scale its impact in Zambia and beyond. N3F’s investment in the company will contribute to increased access to quality beans and groundnuts by smallholder farmers and households in Zambia as either seed for replanting or food for consumption in their homes. 

Camino Ruiz: Based in Kenya, Camino Ruiz distributes tilapia fish and partners with Global Tilapia and farmers’ groups for production. Tilapia is a vital source of protein and essential nutrients, providing vitamins and minerals like B12 and selenium to low-income communities. Camino Ruiz also supports women’s groups in Homabay County, providing training and economic opportunities, particularly for women and youth. 

Quotes 

Myrtho Vlastou, Debt Director of Africa at Incofin Investment Management, remarked, “These initial investments exemplify N3F’s mission to bridge the funding gap for SMEs in Sub-Saharan Africa. By supporting Shalem Investment Ltd and Good Nature Agro, we are fostering businesses that deliver critical nutritional benefits to their communities. Our focus remains on driving tangible, sustainable change where it is needed most. 

Roberta Bove, Senior Lead Innovative Finance at GAIN, stated, “We are incredibly pleased to announce the first investments of N3F, sampling the breadth of opportunities for investing in nutrition in Sub-Saharan Africa. We believe in the impact potential of these business models operating at different stages of nutritious foods value chains, and look forward to further invest across stages of various value chains through a food system approach. 

Prospects 

The Africa Food Systems Forum, taking place from 2nd to 6th September 2024, serves as an ideal backdrop for this announcement. It calls to address nutrition and food security crises in Africa. N3F aims to yield not only financial returns but also substantial social impact. 

As N3F continues to grow, Incofin and GAIN will continue collaborating with stakeholders to mobilize resources and scale their efforts across the continent. 

About Incofin 

Incofin is a leading impact investor committed to financial inclusion, the agri-food value chain, and access to safe drinking water. Driven by a mission to promote inclusive progress and sustainable transitions, Incofin actively invests in emerging and developing markets to uplift vulnerable and underserved communities. Incofin manages over USD 1.4 billion in assets, with a dedicated team of more than 90 professionals. Its investor base comprises development banks, institutional investors, family offices and private individuals. 

About GAIN 

The Global Alliance for Improved Nutrition is a Swiss-based foundation dedicated to tackling malnutrition worldwide. With a focus on increasing consumer demand, accessibility, and market incentives for nutritious foods, GAIN is at the forefront of the fight against malnutrition. 

For media inquiries, please contact:

Shonan Kothari

(press@incofin.com)

July 2024 

Incofin and the Global Alliance for Improved Nutrition (GAIN), in partnership with the U.S. Agency for International Development (USAID) and the Swiss Agency for Development and Cooperation (SDC) have teamed up to launch the Nutritious Foods Financing Facility Fund (N3F). The Fund aims to boost the production and distribution of safe and nutritious foods across Sub-Saharan Africa, positively impacting the lives of millions.

Unleashing the Power of Impact Investing

N3F is an open-ended debt fund designed to invest in small and medium enterprises (SMEs) focused on improving nutrition in Sub-Saharan Africa. Its innovative blended structure combines public and private donor funds to attract capital from private investors.

N3F will support SMEs along the nutritious food value chain. It aims to generate over half a billion additional servings of nutritious food, benefiting more than 7 million people in Sub-Saharan Africa over the next decade. The fund’s comprehensive investment strategy is poised to greatly enhance access, affordability, and desirability of nutritious foods for millions of lower-income individuals, with a special emphasis on women and children. 

Beyond financial investments, N3F is committed to providing technical assistance (TA) for SMEs, with GAIN delivering this under a grant provided by the Netherlands Ministry of Foreign Affairs. GAIN will also lead the dissemination of knowledge and insights from the validation of metrics for targeting nutrition-sensitive investments from the N3F, a pioneering nutrition fund.

Addressing the Malnutrition Crisis

Malnutrition affects over one in three people globally. The challenge of accessing nutritious food is most pronounced in Africa, where most food comes from SMEs – especially for the poorest and most vulnerable people. Today, 80% of Africans cannot afford a healthy diet. Undernutrition and the higher risk of chronic food-related illnesses such as diabetes impact millions, particularly in Sub-Saharan Africa. Only 50% of the fruit and vegetable volumes needed to meet dietary recommendations are available on the continent, let alone accessible to consumers.  Additionally, African countries are among the most vulnerable to climate change; by 2050, under a 3°C warming trajectory, the number of undernourished Africans is expected to rise from 282 million to over 350 million people. 

Quotes

Myrtho Vlastou, Debt Director Africa at Incofin Investment Management and Fund Manager for N3F: 

“Through N3F, we are addressing a proven funding gap for SMEs in Sub-Saharan Africa. Our focus is clear: supporting businesses with tailored funding products where it matters the most. With deals already in the works across East and West Africa, the demand is real.”

Roberta Bove, Senior Lead Innovative Finance at GAIN

“Through N3F, we aim to pioneer making nutrition central to food systems. For too long, investment in food and agriculture in Africa has neglected healthy dietary needs, focussing on crops for export or staple foods. We aim to show it is possible to support the entrepreneurs who deliver most of the food to local consumers, and we aim to make diets healthier. In this way, N3F will contribute to achieving the nutrition targets of SDG 2 on ‘Zero Hunger.'”

Patrick Webb, Chief Nutritionist at USAID

Even in Africa, most consumers do not produce the food that they eat. They purchase it from local markets or from small shops that are supplied by Small and Medium-sized Enterprises working across the food system. These are mostly locally-owned businesses that process, transport and transform foods of all kinds. N3F fills a critically important role in offering value chain support to make nutritious foods more available, accessible and, hopefully, affordable to families across the continent. I hope that many more donors will join hands with this exciting and innovative initiative.”

***

Notes to Editors

About Incofin

Founded in 2001, Incofin is an Impact-Focused Asset Manager managing over USD 1.4bn AuM in investments in emerging countries. It invests for impact to drive inclusive progress and sustainable transitions. It has a global presence and a dynamic team dedicated to Financial Inclusion, Sustainable Agriculture, and also Safe and Affordable Drinking Water. The company builds its portfolios adopting social, gender and climate lenses. 

About GAIN

The Global Alliance for Improved Nutrition is a Swiss-based foundation dedicated to tackling malnutrition worldwide. With a focus on increasing consumer demand, accessibility, and market incentives for nutritious foods, GAIN is at the forefront of the fight against malnutrition.

About USAID

USAID is the world’s premier international development agency and a catalytic actor driving development results. USAID’s work advances U.S. national security and economic prosperity, demonstrates American generosity, and promotes a path to recipient self-reliance and resilience.

For media inquiries, please contact:

Shonan Kothari

press@incofin.com