IFC Invests $10M in Women-Led EcoEnterprises Fund to Boost Green SMEs in Latin America

The International Finance Corporation (IFC), a member of the World Bank Group, has announced a US$10 million investment in EcoEnterprises Partners IV — a women-led impact fund dedicated to supporting sustainable small and medium enterprises (SMEs) across Latin America and the Caribbean (LAC). The investment underscores IFC's continued commitment to empowering women in finance, expanding access to capital in frontier markets, and advancing climate-smart, nature-based solutions.

Supporting Sustainable Enterprises Across Latin America

EcoEnterprises Partners IV, the fourth fund under the EcoEnterprises Fund umbrella, aims to raise a total of US$150 million to invest in 15–20 companies that deliver measurable environmental and social impact. The fund will prioritize investments in the Amazon Basin, Andean region, and Central America, targeting SMEs that strengthen biodiversity, promote climate resilience, and generate sustainable livelihoods for rural communities.

The IFC's contribution, made through its SME Ventures Program, seeks to catalyze private investment into markets that have seen limited equity activity. Countries such as Ecuador, Costa Rica, and other LAC nations have experienced a scarcity of private capital over the past five years, limiting opportunities for green entrepreneurship and inclusive growth.

"IFC's investment in EcoEnterprises Partners IV reflects our commitment to creating jobs and supporting smart development in underserved regions," said Farid Fezoua, IFC's Global Director for Disruptive Technologies, Services, and Funds. "We aim to deepen private equity markets in Latin America and the Caribbean, particularly in frontier economies. By demonstrating the viability of investing in SMEs that generate both financial returns and measurable impact, this initiative is expected to attract more institutional investors to the region."

A Proven Model of Impact Investing

Founded in 1998, EcoEnterprises Fund has built a strong track record in environmental impact investing. Over the past 25 years, it has deployed more than US$150 million in over 50 SMEs across the region. These investments have created thousands of jobs — many of them for women — while contributing to reforestation, regenerative agriculture, sustainable fisheries, and eco-tourism.

The fund's CEO Tammy Newmark, who is recognized as a pioneer in gender-smart and nature-positive finance, emphasized the transformative role of IFC's participation.

"With IFC's participation, EcoEnterprises Fund will be better able to accelerate businesses that deliver tangible impact for both people and planet," Newmark said. "This fourth fund will help mainstream investing in natural climate solutions that transform the way business is achieved in the region."

Driving Inclusive and Climate-Resilient Growth

EcoEnterprises Partners IV will channel capital into sustainable products, ag-tech, circular economy, and clean energy solutions. It will also invest in regenerative agriculture, waste-to-energy initiatives, sustainable forestry, and biodiversity conservation.

At least 40 percent of portfolio companies are expected to be women-owned or women-led, aligning with IFC's gender inclusion priorities and the World Bank Group's Gender Action Plan. The fund also aims to strengthen rural supply chains, helping small farmers and local entrepreneurs improve productivity, adopt sustainable practices, and access export markets.

Fund IV has already secured US$100 million in commitments, and IFC's participation is expected to further catalyze private capital from institutional investors, family offices, and impact funds, helping the initiative reach its target size and scale.

Deepening the Private Equity Ecosystem in Frontier Markets

IFC's investment in EcoEnterprises Partners IV is part of a broader strategy to develop resilient financial markets in emerging economies. Through the SME Ventures Program, IFC provides capital and advisory support to private equity and venture funds in low-income and post-conflict countries, where traditional financing remains scarce.

This investment will help address critical financing gaps in Latin America's green economy by demonstrating that impact-oriented SMEs can achieve strong commercial performance while delivering measurable environmental and social benefits. It also reinforces IFC's Climate Business Strategy, which aims to increase climate-related investments to 35 percent of IFC's total commitments by 2030.

Promoting Biodiversity and Climate Action

Latin America and the Caribbean are home to some of the world's most biodiverse ecosystems, but they face growing threats from deforestation, resource depletion, and climate change. EcoEnterprises Partners IV seeks to tackle these challenges through market-based solutions that promote sustainable land use, low-carbon production, and ecosystem restoration.

Projects supported by previous EcoEnterprises funds include agroforestry ventures in Peru, sustainable cocoa production in Ecuador, and eco-certified fisheries in Central America — all contributing to the region's green growth and biodiversity protection goals.

Empowering Women and Local Communities

As a women-led fund, EcoEnterprises Partners IV is a model for inclusive investment leadership. The fund's management team integrates gender equity across its investment process — from portfolio selection to capacity-building programs that empower women entrepreneurs and employees in the green economy.

By supporting women-led enterprises and climate-smart ventures, IFC's partnership with EcoEnterprises Fund demonstrates the transformative potential of gender-responsive investing for sustainable development.

A Shared Vision for the Future

The IFC's engagement with EcoEnterprises Partners IV reflects the World Bank Group's commitment to promoting resilient, inclusive, and low-carbon economies in Latin America. Through this partnership, IFC and EcoEnterprises aim to mobilize private capital, stimulate job creation, and foster innovation that benefits both people and the planet.

By aligning financial performance with environmental stewardship, the initiative exemplifies how impact investing can reshape the future of development finance in emerging markets.