Part of Canada's response to the COVID-19 crisis

Economic recovery with a gender lens

2X Canada is a CAD 75.9 million blended finance facility led by FinDev Canada and funded by the Government of Canada through Global Affairs Canada, that will support investments that drive positive impact on women’s economic empowerment in Latin America and the Caribbean and Sub-Saharan Africa. 

What is 2X Canada?

It's a blended finance facility led by FinDev Canada to enhance the socio-economic well-being of underserved, vulnerable populations, particularly women, through access to finance. 

Where does 2X Canada operate?

The facility will support opportunities in Latin America and the Caribbean, and Sub-Saharan Africa. 

What is the difference between 2X Canada and FinDev Canada's regular investments?

Thhis facility unlocks the possibility to invest in riskier, underserved and fragile markets where FinDev Canada cannot currently invest directly. 

This type of financing addresses persistent market gaps and structural barriers faced by underserved women entrepreneurs, widening the reach of Canada’s development finance impact.

2X Canada will complement FinDev Canada’s core mandate, enhancing its ability to deliver high impact outcomes through private sector investments that promote inclusion and innovation or deepen our reach in frontier markets. 
 

What type of businesses will be supported by 2X Canada?

2X Canada will exclusively support transactions that intentionally drive women’s economic empowerment. This means that an investment must show a positive impact (current or potential) on at least one key vector of women's economic empowerment identified in FinDev Canada's gender strategy:  access to entrepreneurship, leadership positions, quality employment or access to economic empowerment tools for women. 

All investments will be 2X Challenge eligible.

2X Canada will focus on financial intermediaries (investment funds, financial institutions including micro-finance, cooperatives) with a clear strategy and thesis to reduce gender gaps in access to finance, leadership roles, quality employment and/or access to economic empowerment tools. By working together, we can develop and launch innovative programs and offer development impact capital to reach scale. 

What is the 2X Challenge?

The 2X Challenge was launched by the G7 development finance institutions (DFIs) in 2018 at the G7 Charlevoix Summit. It is a commitment by DFIs to mobilize financing in gender smart investment. The 2X Challenge surpassed is original target of US$ 3 billion and has expanded its membership to include development banks, and other DFIs. The 2X Challenge has defined a common set of criteria to define what investing in women mean. 

What is the capitalization of this Facility?

2X Canada is capitalized at C$75.9 million through the International Assistance Innovation Program at Global Affairs Canada. 

How will investment decisions be made in this program?

2X Canada will be administered by FinDev Canada, leveraging FinDev Canada’s proven capability to deliver on its clients’ needs while ensuring positive development impact outcomes and financial due diligence through established investment processes, development impact model, gender equality strategy, environmental and social policy, and asset management and monitoring process. 

Investment opportunities within the facility will be subject to FinDev Canada’s investment process, which includes rigorous due diligence at several stages of decision-making. In addition, all transactions will require an in-depth analysis to  ensure that the OECD-DAC  Blended Finance Principles and the DFI Enhanced Blended Concessional Finance Principles for Private Sector Projects.

With growing pipeline, strong and effective governance and three years of experience financing the private sector in developing countries to achieve positive development impact, FinDev Canada is in a unique position to provide Canadian leadership in blended finance. 

Will FinDev Canada co-invest in transactions supported by this facility?

FinDev Canada will co-invest in a vast majority, if not all, of the transactions supported by 2X Canada. This approach will allow 2X Canada to support high impact transactions that are challenged by financial and market risks that make strictly commercial implementation impossible. Through co-investing, 2X Canada and FinDev Canada together can support transactions that will fill crucial gaps in financing and help reduce financial risk to enhance women’s economic empowerment.

Will 2X Canada provide technical assistance?

Yes. 2X Canada will provide technical assistance. In addition to providing core services including strengthened management and governance, impact measurement, and various areas of business performance such as E&S and data management, specific technical assistance needs in the context of economic recovery will also be supported. These may include business strategy re-orientation, rapid operationalizing of gender action plans, development of financial products and services specifically to serve women, and broader operations and systems strengthening.

Do you still have questions?

Contact us

Click the button below to access our contact form and submit your questions and comments about 2X Canada. 

Gov of Canada logo

 

 

Program undertaken with the financial support of the Government of Canada provided through Global Affairs Canada.