At the Nexus of Investment and Development: Lessons From a 60-year Experiment in Sme Impact Investing

This case study analyses the 60-year history of a development finance institution focused on Small and Medium Enterprise (SME) impact investing in developing countries. It examines the long-term evolution of its financing strategies, risk management approaches, and the dual pursuit of financial returns and measurable development goals. The in-depth analysis reveals crucial lessons on the effective use of blended capital, the importance of patient investment horizons, and the necessity of integrated technical assistance to foster sustainable SME ecosystems. It highlights how catalytic investment can bridge critical financing gaps.