Impact Report 2023

26. June 2024

32 target countries, 95 refinanced financial institutions, 404,537 final borrowers reached – that is our impressive track record in 2023.

Since its foundation 18 years ago Invest in Visions GmbH has been driven by the idea that public funds and philanthropic resources are not enough to tackle social and environmental challenges. According to the latest UNCTAD (United Nations Conference on Trade and Development) mid-term report, an incredible USD 4 to 4.3 trillion is needed annually to close the financing gap to achieve the UN Sustainable Development Goals by 2030 in the Global South. Microfinance can help here. It is an important instrument for promoting economic development and combating poverty.

Microfinance, and impact investing in general, requires an intention to have an impact, an impact contribution and an impact measurement based on relevant indicators. The impact contribution is the central element. How this can be achieved is described in the so-called “theory of change”. This is a method for the planning and process-oriented evaluation of programmes, projects and investments that are intended to promote social change.

Microfinance, and impact investing in general, requires an intention to have an impact, an impact contribution and an impact measurement based on relevant indicators. The impact contribution is the central element. How this can be achieved is described in the so-called “Theory of Change”. This is a method for the planning and process-oriented evaluation of programmes, projects and investments that are intended to promote social change.

A an outsourced financial portfolio manager for the funds we manage, Invest in Visions’ main contribution to impact is the allocation of capital to an underserved market: the funds refinance microfinance institutions in developing and emerging countries, which pass the money on to sub-borrowers in the form of micro and small loans. Discussions with the microfinance institutions about customer protection play just as important a role as the steadily increasing proportion of loans granted in local currency.

Whether in the focus region of the current Impact Report, Latin America, where 35 per cent of the invested funds were allocated at the end of 2023, or in general, the contribution of the funds managed by Invest in Visions to supporting jobs and value creation can at least be estimated using the JIM database[1]. Although it is not possible to measure the specific contribution to reducing poverty and inequality, scientific studies can be used to assess whether microfinance generally has the potential to have a positive impact in these areas.

[1] Joint Impact Models (JIM): Spin-off of the Dutch development bank FMO