Impact investment for economic development

Today I announce an Australian Government initiative aimed at leveraging private investment in small and medium enterprise to promote economic growth and reduce poverty in our region.

The $40 million Emerging Markets Impact Investment Fund (EMIIF) will support SME's that generate positive social and development outcomes for poor communities in our region.

The EMIIF will invest $2 million or more in SME funds to help a range of businesses access capital to grow.

From café owners in Bangladesh to sustainable agriculture producers in Indonesia, these enterprises will benefit from a new approach to foreign aid that provides loans, equity, guarantees and other market-based finance solutions.

The Fund will also encourage investment in enterprises that positively impact women, building on the work of Australia's $44 million Investing in Women program that commenced in 2016.

This initiative is part of Australia's broader efforts to support social entrepreneurship and impact investment in our region, which is already seeing results. Our Pacific Readiness for Investment in Social Enterprise program recently helped secure $600,000 to support Tanna Coffee in Vanuatu, increasing employment in a region devastated by Tropical Cyclone Pam two years ago.

A tender process to manage the EMIIF will commence shortly to engage an investment manager and trustee to oversee operations. I encourage interested parties to visit DFAT's Business Opportunities webpage.