Australia, UNDP boost support for social enterprises in PH

THE Australian Government and the United Nations Development Programme (UNDP) are boosting support and encouraging investment in social enterprises in the Philippines through the creation of an innovative partnership for social impact investing.

With initial funding support of US$2 million (P100 million) challenges in moving beyond inifrom the Australian Government, tial establishment and operation. the Innovation for Social Impact Some of these challenges include Fund Project will establish partner - tal and technical capacity to help and leading social enterprise fund SEs move to a stage where they managers to help social enterprises can attract additional investment in the Philippines further accelerto scale up operations. ate and expand their businesses. “The Project is designed to close

Social enterprises ( SEs) typigaps by providing selected, highcally reinvest profits back into potential start-up SEs with funding and technical support to enable social or environmental objectives, them to grow their operations and attract investments from global for shareholders and owners. and local impact investors. It will

Successful SEs exist in the Phil- support SEs that have a proven concept or ‘blueprint’ and a plan for growth with increased impact that is aligned with the Sustainable Development Goals (SDGs),” UNDP Philippines Country Director Titon Mitra said.

The SIF will assist up to 40 SEs over the next five years. A local bank will provide loans as financial assistance of up to US$150,000 (approximately P7.5 million) per SE over three years. Loans will have a repayment period of 5 to 6 years based on current business lending rates, with at US$6 million (P300 million). In addition to funding support, international and Philippine experts will also provide technical assistance to help SEs to further develop their business models and expand operations.

“The Australian Government encourages the development of innovative social enterprises in the Philippines as a pathway to economic growth. This project is among the exciting aid investments Australia is supporting as part of our new approach to development cooperation. We are investing more in innovative programs that offer science & technology- based solutions to address some of the most pressing social and environmental issues, reach underserved communities and contribute to the SDGs,” Australian Embassy Deputy Head of Mission Mat Kimberley said.

The Social Impact Fund in the Philippines is aligned with and supports the broader initiative of UNDP to encourage increase in private investments to sustainable development and help achieve the SDGs. its regional Social Impact Fund, has capital stakeholders to create or expand socially responsible businesses especially growing, small and medium-sized enterprises (SMEs). Australian Embassy Deputy Head of Mission Mat Kimberley (right) and UNDP Philippines Country Director Titon Mitra