Triple Jump is proud to announce that Visa Foundation has committed USD 4 million to the Triple Jump Financial Inclusion Resilience Fund (FIRF). This investment marks a significant step towards fostering financial inclusion and resilience in emerging markets.
FIRF provides subordinated debt designed to support institutions that provide financial services to underserved populations, including micro, small, and medium-sized enterprises (MSMEs). By addressing the financial needs of these vulnerable groups, FIRF aims to build economic resilience and promote sustainable growth in developing regions.
“This investment from Visa Foundation is a testament to our shared commitment to fostering financial inclusion and resilience in underserved communities. Together, we can drive sustainable growth and economic stability in emerging markets” says Lisa van Splunteren, Head of Investor Relations & Business Development, Triple Jump.
Visa Foundation has a strong track record of supporting impactful projects around the world. Their investment in FIRF will enhance the Fund’s capacity to support financial institutions in regions that need it most, ultimately helping to expand financial inclusion and promote economic stability.
“Through FIRF, Visa Foundation is providing subordinated capital to financial institutions, which is relatively scarce and hugely catalytic,” said Najada Kumbuli, Head of Investments, Visa Foundation. “This is a strategic move for us to further advance our financial inclusion portfolio and support underserved MSMEs.”
This collaboration with Visa Foundation not only reaffirms Triple Jump’s mission to advance responsible financial services but also strengthens the FIRF capacity to empower women and vulnerable communities. Partnering with such an esteemed leader enhances our ability to drive meaningful change, fostering a more inclusive and resilient global economy by expanding access to critical financial resources and promoting sustainable growth.
FIRF’s Impact
As of August 2024, FIRF has provided subordinated debt to 13 financial institutions across nine countries, advancing financial resilience and inclusion in emerging markets. This support has empowered MSMEs typically excluded from traditional financial services. FIRF’s support helps these businesses to grow, create jobs, and contribute to local economies. FIRF’s impact includes:
- Increased Access to Finance: FIRF has enabled thousands of MSMEs to access the capital they need to expand their operations and improve their financial stability. The Fund has reached 80% of its target to reach active borrowers, showing significant progress in expanding financial access.
- Economic Resilience: By supporting financial institutions that serve vulnerable populations, FIRF helps build economic resilience in communities, allowing them to better withstand economic shocks and recover more quickly. FIRF’s outreach to women and rural borrowers stands at 90% and 67%, respectively, well above the Fund’s initial targets for both indicators.
- Job Creation: FIRF investees have supported the creation of numerous jobs, with the estimated number of jobs already reaching more than 85% of the fund’s target, contributing to stronger local economies and improved livelihoods.
- Sustainable Growth: FIRF’s investments promote sustainable economic growth by supporting businesses committed to responsible and inclusive practices. The average ESG score of 78% is also significantly above target, ensuring the Fund’s commitment to sustainability and responsible investing.
- Gender and Inclusion Focus (2X Challenge Compliance): FIRF demonstrates strong alignment with the 2X Challenge, a global initiative to promote gender equality in investment. The Fund Manager exceeds compliance by meeting more than one direct 2X criterion, and 69% of the portfolio companies are 2X aligned, far surpassing the minimum threshold of 30%.
