Still a young organization, SIFEM focused in 2012 on becoming fully operational and on expanding its investments in favour of SMEs and high-growth companies in developing countries and emerging economies.

The income statement under IFRS (International Financial Reporting Standards) posted a net loss of CHF 17.2 million. The investment portfolio yielded net revenue of CHF 2.8 million, which was not enough to cover the operating expenses of CHF 5.9 million. Other losses of CHF 14.1 million were due to currency fluctuations and the imputed interest for the federal loan as prescribed by IFRS.

The investments were profitable when viewed across the entire period, with an Internal Rate of Return (IRR) of 10.2%. Returns from completed investments came to CHF 43.7 million, the highest since the onset of the financial and debt crisis.

SIFEM was subject to an independent audit for the first time in 2012. The evaluation concluded that SIFEM has met, and in some cases even exceeded, all of its development goals. The relevance of its mandate and its management were viewed as positive. It was also proven that SIFEM makes a significant direct and indirect contribution to generating employment in its partner countries, with around 5,700 jobs created each year.

SIFEM is a public limited company held by the Swiss Confederation. Most of its investments take the form of venture capital in developing countries and emerging economies, giving SMEs and high-growth companies an opportunity to access long-term financing. SIFEM thus contributes to these companies’ sustainable growth and job creation as well as private sector development and poverty reduction in the target countries. A detailed account of SIFEM’s operations and financial statements can be found in its 2012 Annual Report, available for download at www.sifem.ch.

SIFEM: Creating jobs in emerging economies through investment