Investment Objectives

ADI has three main objectives, to contribute to inclusive and resilient economic development, to build the impact investment market for SME Funds, and to contribute to encourage others to use blended finance for development outcomes.

1
Development Objective

ADI supports inclusive and resilient economic development, gender equality, and climate action through its investments in SME Funds and their underlying SME portfolios, which focus on:

  • Community Benefit: SMEs contribute to inclusive economic growth by providing decent job opportunities and inclusive products and services.
  • Gender Equality: SMEs that are women-owned, or adopting gender-inclusive workplace policies or offering products/services beneficial to women and girls.
  • Climate Impact: SMEs that enhance climate resilience and minimize climate-related risks.
2
Market Building Objective:

ADI seeks to build and grow the impact investment, gender lens investment (GLI) and climate investment market for SME Funds through the following strategies:

  • Increasing Financial Intermediary Market: By investing in emerging or early-stage funds, ADI accepts the risk of supporting SME Funds that currently lack sufficient investment, thus broadening the financial intermediary market.
  • Crowding in Private Capital: Utilising blended finance structures to attract private capital from Australian and international investors into the region.
  • Promoting Industry Best Practices: Encouraging the adoption of Environmental, Social, and Governance (ESG) standards, Gender Lens Investment (GLI), and climate-focused investment practices to enhance the impact of SME Funds and their portfolio companies.
3
Organisational Learning Objective:

ADI is committed to continuous learning and improvement, and to using its reporting to demonstrate how investment-based approaches can achieve development outcomes.

  • Encouraging investment-based approaches to development: leading by example, ADI encourages the broader adoption of blended finance and investment-based approaches to development, initially within the Australian Department of Foreign Affairs and Trade, and ultimately within the sector more broadly.

Theory of Change

ADI uses a Theory of Change to maintain a clear line of sight between its day-to-day operations and its long-term outcomes. Every year ADI produces a monitoring and evaluation report tracking progress towards its intended outcomes, and every few years ADI commissions an external report to verify and build on these findings. A summarised version of the Theory of Change is presented below.

Theory of Change infographic

Our Impact

5
Investments
1,020,000+
Women Micro-Entrepreneurs Financed
37
Portfolio Companies
9,800+
Jobs Supported

Impact by Country

Flag of Vietnam
Vietnam
18
Portfolio Companies
5,400+
Jobs Supported
3,000+
Women Micro-Entrepreneurs Financed
Flag of Indonesia
Indonesia
6
Portfolio Companies
2,600+
Jobs Supported
1,010,000+
Women Micro-Entrepreneurs Financed
Flag of the Philippines
Philippines
5
Portfolio Companies
500+
Jobs Supported
100+
Women Micro-Entrepreneurs Financed
Flag of Bangladesh
Bangladesh
7
Portfolio Companies
1,000+
Jobs Supported
6,500+
Women Micro-Entrepreneurs Financed