Guest Blog Post by Magnus Berg Johansen about Workshop D1 at TBLI CONFERENCE EUROPE 2015 on Development Finance and the role of the Swiss banking sector. The moderator Sabine Döbeli, CEO Swiss Sustainable Finance was joined on the panel by Patrick Elmer: Head Business Development at Blue Orchard, Christian Etzensperger, Head Corporate Development and Strategy at
ResponsAbility Investments AG, and Andrea Heinzer: CIO and Partner at Obviam AG.
Views and opinions are that of the writer and are not the official views of TBLI CONFERENCE.
What are the main reasons for capital not to be allocated into development investments? And how come it is so that Switzerland with all its financial capacity does not generate new innovative financial vehicles?
These were some of the questions that were raised during the session that took a closer look at three different financial institutions that generate returns for their shareholder by investing in developing countries.
The session started off with Patrick Elmer from Blue Orchard discussing the issues of why funds do not find the way into these types of vehicles – because there is enough capital.
Andrea Heinzer from Obviam AG then took over and presented some of the various challenges that exist and hinder more capital movemenet into impact investing.
Lastly, Christian Etzensperger from ResponsAbility demonstrated how a fund can generate an impressive 30 percent growth per year in assets under management, mainly by attracting funding from private sector. The fund is continuously growing, and this is demonstrated with ResponsAbility's plans of opening a new office on the African continent. According to Etzenserger, however, there is still a great need for financing to reach the Sustainable Development Goals (SDG).
He showcased how the emerging markets need an annual SDG financing of USD 4,5tn, while the current assets under management of Swiss banking is at USD 6,7tn. At the same time, the annual transfer cost of the German unification was EUR 100bn. More specifically he showed the need within the various sectors in emerging markets.