The intersection of gender and climate finance: catalyzing growth for SMEs

My session will explore the intersection of gender and climate finance, highlighting how investors can mobilise capital toward high-impact enterprises led by or benefiting women in emerging markets to catalyse significant growth for SMEs. In doing so – this covers two areas: 1. Fund raising and 2. Deployment and Returns.

1. Fund raising: I will examine the barriers to funding – risk perception vs return expectations, the role of blended finance and the potential for scalable solutions. How the correct use of blended finance and SIINCs can crowd in commercial capital, yet still make sense for impact investors, and ensuring that investees are able to profit from impact they create on the ground.

2. Deployment and Returns The audience will gain insight into structuring investments that drive both financial returns and meaningful impact, particularly in regions where climate vulnerability disproportionately affects women. We contend that the private equity model is not the correct model for all SME investing due to the dearth of viable exists. Investors need to take a pragmatic approach to deploying capital, with a sharp focus on cashflow generation potential and the structure the most suitable instrument. This approach considers the entrepreneur and the investor and offers a menu of potential financial instruments (such as revenue based lending, dividend buy out options, self-liquidating instruments and converts with optionality. Better aligning an investors risk with that of the entrepreneurs.