FCA Investments: Developing

DEVELOPING COUNTRIES NEED RESPONSIBLE INVESTMENTS

INVESTING IN BUSINESS is an efficient way for non-governmental organisations to support the economies of developing countries. In response to this increasingly important trend, Finn Church Aid’s investment company, FCA Investments Ltd (FCAI), was launched in 2019 with a loan of EUR 16 million from the Finnish government.

FCAI has a clear vision: our aim is to ensure sufficient livelihoods for the growing populations of developing countries. According to the World Bank’s pre-pandemic estimate, 600 million additional jobs will be needed globally by 2025, and the need for employment has only increased since then. In 2020, the Covid-19 pandemic made it difficult for us to explore new investment opportunities as some of the companies withdrew their growth plans and cancelled their funding applications. However, the presence of FCAI’s local staff in Uganda and Somalia has facilitated operations during the pandemic.

With the Covid-19 crisis, private sector development is more important than ever, as it is the only way to create new jobs. Considering the scale of the challenge, conventional development cooperation alone will not be able to address all the needs, and responsible investments are required to help SMEs get back on their feet and grow.

Businesses do not emerge out of thin air; they need capital. But especially in the world’s most fragile states where investors are exposed to high risks, the financial capital required to launch a business is hard to come by.

Accountability and sustainability are at the core of FCAI’s investment strategy, in accordance with Finn Church Aid’s core values. FCAI invests in socially and environmentally responsible companies that create jobs, raise incomes for low-wage earners and reduce poverty. Our key investment objectives include support for female entrepreneurs and the employment of young people and women.

In addition to funding, FCAI helps SMEs develop their other business activities, such as financial management. Companies have access to Finn Church Aid’s own experts and business professionals who are happy to provide their professional expertise pro bono.

We plan to expand investment activities not only in Somalia and Uganda but also in our other programme countries, such as Kenya, Jordan and Cambodia. The fight against poverty and inequality will only succeed if new jobs are created in developing countries. STOP