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Partnership Opportunities
Opportunities for the Majority
- Thematic Trust Fund for Market-based Solutions for Social Change
- Our Partners
Investing in Underserved Markets
The Inter-American Development Bank has established a multidonor trust fund to identify and support innovative and sustainable business solutions and investments that raise the standard of living of that 70 percent of the population of Latin America and the Caribbean with low incomes. Called the Strategic Thematic Fund to Apply Market Solutions for Social Change, the Fund supplements financial resources of the IDB, the private sector, nongovernmental organizations and official institutions to provide technical expertise necessary to make investments in low-income markets more effective.
Contributors to the Fund will have a gateway to gain access to a $250 million IDB facility—established under the Opportunities for the Majority initiative—that offers loans and guarantees to support innovative business models that aim to improve the lives of the low-income mayority. The Strategic Thematic Fund seeks to mobilize nonfinancial, as well as financial, contributions that can be deployed to ensure the success of innovative business ventures through special partnerships established with contributors and other investors.
In addition to financing, the IDB can act as an incubator for pilot endeavors and offer technical assistance in all the phases of project development.
Who will contribute to the Fund?
Both governmental and nongovernmental sources will contribute to the Fund, including philanthropic organizations, individuals, corporations, international organizations and governments around the world that have an interest in mobilizing investment in low-income markets as a stimulus to economic growth, higher incomes, and wider distribution of quality goods and services.
What advantages does the Fund offer its donors?
The Fund will offer contributors:
- A major voice in setting the agenda for developing and carrying out market solutions to promote economic growth and a platform to leverage its contributions by 20 to 1 or more to achieve a higher impact in reaching underserved markets.
- Participation in a dynamic, worldwide network and sustained dialogue for the advancement of common strategic objectives, the sharing of information and best practices and the leveraging of resources.
- A productive partnership with the IDB, whose resources and staff will support innovative projects with the planning, financing, evaluation, tracking and long-term commitment required to reduce risk and increase the probability of a project’s success.
What kinds of projects will the Fund support?
Fund resources will support activities for project identification, preparation and development, in the framework of improving the quality of goods and services in low-income markets. Other activities may include market research, project tracking and evaluation, promotion of public-private partnerships, and steps to improve the regulatory and business environment for investors.
Projects may include microfinance and micro insurance, low-cost health and nutrition solutions, home improvement and infrastructure such as energy supply, cell phone communications and neighborhood development. Projects must be sustainable and have the capacity to be applied on a larger scale for higher impact.
Who Manages the Fund?
The IDB’s Office of Opportunities for the Majority will manage the Fund’s operations according to procedures established for similar funds. This office will collaborate with donors and senior Bank management.
For more information about the fund contact: OM-IDB@iadb.org
