GAWA Capital
Institution
Founded in 2010, GAWA Capital is the leading fund manager in advice on impact investing in Spain, having deployed over 195 million euros in public and private investments towards impact investing. Its aim is to improve the life of low-income communities by promoting investment in social enterprises, while providing a financial return to their investors.
Since its creation, GAWA has pioneered the introduction of impact investing assets in Spain by launching three funds, as well as advising on one for others - Magallanes Impacto FIL. Each one of these funds has invested capital and debt in emerging countries, in companies with an inclusive approach focusing on providing market-based solutions to key social problems such as poverty. To date, GAWA has carried out investments in 15 countries, with a history of positive financial return in its three funds prior to Huruma, including 6.34% annual IRR for investors in their first fund.
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Green finance
Gawa believes that increasing resilience among smallholder farmers and MSME is key to achieve sustainable development and poverty reduction. We achieve this by promoting capacity building and access to finance.
We focus our efforts on improving the financial offering promoting new products and methodologies (insurance, green credits, etc) and therefore increasing the financial flows towards improved resilience investments. Many of our investees offer climate-friendly products such as crop loans for diversification of farming.
Climate adaptation
Climate adaptation is a key element for GAWA Capital as it helps its invested entities’ clients face climate change risks.
The latest fund that has been launched by GAWA Capital, Huruma Fund, aims at boosting the resilience, productivity and income of smallholder farmers in developing countries.
With Huruma Fund, we can contribute to farmer’s climate change adaptation by promoting capacity building and the development of agri-insurance products, among other solutions, in order for farmers to be able to manage risks from climate impacts and strengthen their resilience.
Digital tools
We are currently exploring digital tools for reporting and consolidation of impact indicators.
Goals
We set ourselves the goal to invest at least 130 million Euros fro adaptation until 2030. With this amount we aim to invest in 50 MIFs. This translates into providing 150 000 smallholder farmers with access to finance as well as 150 000 smallholders being more resilient by 2030.
Products or projects that exemplifies adaptation actions
With investment in MFIs, we can agree covenants in each contract such as an increase in the MFI's capacity building provided to its clients or the development of an agri-insurance product. These covenants would then have to be met by the invested entity by the time we exit the investment.
Furthermore, we are currently in inception phase of the Technical Assistance Facility for Huruma Fund. This Facility can deploy resources for providing capacity building and developing new agri-smart products for Huruma Fund's invested entities. These potential Technical Assistance projects would help smallholder farmers with climate adaptation.
