FMO’s participation, experience, and success in higher-risk markets often give other financial institutions and commercial banks the comfort to come on board. This allows FMO to mobilize more funding and catalyze commercial and institutional investors to frontier markets.
Entrepreneurs in developing and emerging markets need financial access in order to set up and grow their businesses. But commercial financiers are often reluctant to commit to their higher risk categories – limiting the potential for these businesses to mature and positively affect their local communities.
FMO is convinced that more companies and investors should seize the opportunity to invest in developing countries – and the possibility to make a strong economic impact.
With over 40 years’ experience investing in some of the world’s most difficult markets, FMO has amassed considerable expertise and knowledge in its field.
We do not compete with commercial banks – we inspire them. As ‘catalyst’ financier, FMO accepts a relatively high share of the risk involved, which in turn gives other financiers the space and confidence to invest.
Once they are willing to take over our investment role, we move on to other high-risk projects or countries or tackle the new needs of our existing clients.
Adding broader value
FMO seeks investment projects that allow it to be ‘additional’ to the market with the products, services and expertise clients cannot receive from commercial players.
But we take our ‘additional’ role one step further, by encouraging clients to integrate sustainable best practices into their business models in areas such as corporate governance, environmental policies and social responsibility.