INFRONT: Impact Investing in Frontier Markets

Tunisia AgrolitoSmall and medium enterprises (SMEs) play a pivotal role in driving economic growth in emerging economies, however face significant challenges to improving their businesses.

INFRONT is working throughout Asia, Africa and Latin America to expand the ability of SMEs to access investment capital, adopt and implement enlightened business practices, and accurately measure social impact.

Led by MEDA, and in partnership with Sarona Asset Management (SAM) and the MaRS Centre for Impact Investing, INFRONT is comprised of three key components:

  1. Investment: The Sarona Frontier Markets Fund 2 LP (SFMF 2 LP), a fund of up to $250 million, is investing in up to 18 local funds for onward investment in approximately 130 SMEs that have potential for high development impact. Investors include OPIC, MEDA, SAM, and private investors, spurred by an innovative and catalytic $15 million contribution from DFATD.

  2. Technical Assistance Facility. The technical assistance facility is made up of two components:
    1. Social Innovation Grant Fund. This fund provides economic incentives for up to 50 SMEs to improve their environmental, social and governance (ESG) policies and practices.
    2. Global Fund Manager Mentorship Program. This program will match 20 experienced North America private equity managers as mentors with managers in frontier and emerging markets.
  3. Impact Measurement: Building on existing social performance platforms, MEDA is developing an Enhanced Monitoring and Evaluation System (EMES) to support more rigorous impact measurement.

 

For more information, please contact Katie Turner, INFRONT Program Manager: kturner@meda.org.