International Development Grant

A New Partnership for Sustainable Impact Investing in Frontier Markets

Project Number: CA-3-D000120001

Status: Operational

Country/Region: Unknown

Regional Focus:

Africa 30%
America 30%
Asia 40%

Maximum Contribution: $18,944,025.00

Start Date: June 21, 2013

End Date: June 21, 2028

Duration: 15.0 years

Project Description

This project aims to reduce poverty by supporting the development of small and medium enterprises which play a vital role in creating jobs and generating wealth in developing country markets. The project supports the launch of a 15-year investment fund that leverages private equity investment of up to $400 million to help up to 250 of the most promising small and medium enterprises in developing countries grow thereby creating at least 15 000 new jobs. Through investments and technical assistance the project also aims to increase access to products and services for up to 10 000 000 individuals improve socially responsible business practices and generate additional revenues for small and medium enterprises and governments. This project is a collaboration among the Mennonite Economic Development Associates Sarona Asset Management and the MaRS Centre for Impact Investing. The project is part of Canada's commitment to promoting sustainable economic growth globally.

Expected Results

The expected intermediate outcomes for this project include: over the life of the fund (i) expanded and improved investment services provided by 12 to 18 investment funds to up to 250 small and medium enterprises; and (ii) strengthened capacity for economic growth job creation reporting and social impact among 15 to 20 investment firms and up to 250 small- and medium- sized enterprises.

Progress & Results Achieved

Results achieved as of March 2024 include: (1) raised USD 150 million $ (CAN 193 million $) from the private sector and made available for investment in small and medium-sized enterprises (SMEs) in Africa Asia and South America; (2) created 84 248 jobs (44% for women) through funding to 139 SMEs; (3) generated $2.9 billion in tax revenues to local governments through investee SMEs’ contributions; (4) supported 18 investment funds to integrate gender equality environment and governance considerations into their business operations; and (5) supported 19 experienced North American mentors (50% Canadians) in mentoring 15 investment managers and 61 investment professionals (33% women) to improve their business competence.

Key Information

Executing Agency:
Mennonite Economic DevelopmentAssociates of Canada

Reporting Organization:
Global Affairs Canada

Program:
YFMInternaAssistPartnershp&Programing Br

Last Modified:
September 19, 2025

Development Classifications

DAC Sector:

Formal sector financial intermediaries 40%
Business support services and institutions 20%
Small and medium-sized enterprises (SME) development 40%

Aid Type: Project-type interventions

Collaboration: Bilateral

Finance Type: Aid grant excluding debt reorganisation

Selection Mechanism:
Unsolicited Proposal

Policy Markers
Level 1 Gender equality
Major Funding (>$1M)
Budget Breakdown
2013-04-01 to 2014-03-31 $18,944,025 CAD
Geographic Information
750
Project Number: CA-3-D000120001