Executive Summary
Access to appropriately structured capital remains one of the defining constraints on social enterprises serving low-income populations. While the volume of impact-oriented capital has grown, it is not reaching the poorest segments.
The SDG Innovative Finance Initiative (SIFI) and Dutch Entrepreneurial Development Bank (FMO) funded the exploration of innovative approaches to solving these challenges.
Research conducted by Global Partnerships, in collaboration with Dalberg Capital Partners and MFX Solutions, examined a central structural barrier: foreign exchange (FX) risk and the way it is managed.
Drawing on analysis of real and simulated transactions across a ten-year period (2015–2025), the findings suggest that prevailing approaches to FX risk introduce avoidable inefficiencies that constrain both capital flows and enterprise growth.
This paper highlights a different approach. FX risk is not simply a cost to be hedged away. Rather, it is a portfolio-level variable that can be managed with discipline.
When addressed in this way, it becomes possible to improve capital efficiency, expand access to local currency financing, and potentially strengthen risk-adjusted performance.
Disclaimers
All statements and findings in this white paper are based on analysis conducted by Global Partnerships, in collaboration with Dalberg Capital Partners and MFX Solutions, in 2025 utilizing a specific data set, specified time periods, and selected methodologies. They do not predict future performance or results.
Results reported depend upon various factors, including but not limited to, the analytical methodologies applied, time periods studied, currencies included, and assumptions made with respect to hypothetical future events.
This document is for information purposes only and is not an offer to sell nor solicitation of an offer to buy securities.