One Year In, the Global Gender-Smart Fund Sets a New Standard for Inclusive Finance

Luxembourg, June 2025 – In just one year, the Global Gender Smart Fund (GGSF) has demonstrated how blended finance can do more than mobilise capital — it can reshape institutions to serve women more equitably and effectively.

Since its launch in 2024 by its founding shareholders (the Federal German Ministry for Economic and Cooperation and Development (BMZ), the German development bank KfW, the International Finance Corporation (IFC), and the Development Bank of Austria (OeEB)), GGSF has deployed over $300 million to 52 financial institutions across 24 developing countries. More than 320,000 women clients and 70,000 women employees have been reached. But the Fund’s real innovation lies in how it works: coupling investment with targeted actions and technical assistance to drive long-term, internal change.

That includes gender diagnostics, tailored action plans, and operational support that help partner institutions integrate gender equity across governance, workplace culture, and product design. Over 60% of GGSF’s end clients are women or women-led MSMEs — and portfolio institutions are already showing strong gender representation in senior leadership.

From capital to capacity

The Fund’s results reflect a shift in gender finance — from measuring outreach to transforming systems. GGSF’s blended approach recognises that access to capital is necessary but not sufficient. Institutional practices, leadership structures, and internal incentives all matter.

The Fund works through local institutions already embedded in their communities, providing them with tools to deepen their gender strategies and better serve women clients over the long term.

This model was on display at GGSF’s one-year anniversary event, held in Luxembourg on June 17. 2025. Hosted by Innpact, the event gathered fund managers, development actors, and public stakeholders for a moment of reflection and recommitment.

A short video of interviews with investees and end borrowers highlighted the value of pairing financial resources with operational guidance — helping institutions become more responsive, inclusive, and resilient.

Practitioners on a panel discussion reinforced the same point: gender-smart investing only delivers when it is supported by internal leadership, actionable data, and sustained support — not just capital alone.

Luxembourg’s ecosystem steps up

A key takeaway from the event was the role of public-sector alignment — and Luxembourg’s growing leadership in shaping gender-lens finance as a systemic priority.

Representatives from the Ministry of Finance and the Luxembourg Stock Exchange highlighted the country’s multi-pronged strategy: combining policy commitments with practical initiatives to advance inclusive finance. The Ministry’s 10-Point Action Plan and Women in Finance Charter are setting the tone at the national level, while partnerships with 2X Global are fostering innovation in fintech and blended finance solutions.

At the same time, the Luxembourg Stock Exchange is actively championing sustainable finance with a gender lens through the issuance of gender-focused bonds, reinforcing the case that gender equity is not just a social goal but a driver of long-term financial performance. Together, these institutions are positioning Luxembourg as a hub where public policy, market infrastructure, and private capital converge to accelerate gender-smart investing.

A discussion with local ecosystem actors underscored the importance of alignment — from data and impact measurement to shared language and scalable tools. Luxembourg, they argued, is showing how public institutions can not only support gender finance but shape the global agenda.

From inclusion to influence

As the Fund enters its second year, the emphasis is shifting from experimentation to scale. GGSF’s first year has shown that inclusive finance isn’t just about expanding access — it’s about shifting influence, building institutional capacity, and embedding gender equity at the core of financial systems.

If the goal is lasting impact, the work ahead will require continued collaboration, stronger accountability, and a deepened commitment to ensuring that gender-smart finance becomes the rule, not the exception.

About GGSF

The Global Gender-Smart Fund (GGSF) is the world’s largest gender-smart fund and is unique thanks to its track record, extensive outreach through three portfolio managers, solid blended finance structure, partnerships with industry leaders, and global coordination of an ambitious and measurable gender strategy. The GGSF provides debt financing to financial institutions in developing countries, which is then earmarked for on-lending to women, women-owned and women-led SMEs.

The GGSF aims to strengthen the provision of gender-smart and responsible financial services to underserved women, women-owned or women-led businesses in developing markets, with the goal to improve livelihoods, increase gender balance and outreach, and promote women’s leadership.

The GGSF is a joint initiative by the Federal German Ministry for Economic and Cooperation and Development (BMZ), the German development bank KfW, the International Finance Corporation (IFC), and the Development Bank of Austria (OeEB).

More about GGSF: www.ggs-fund.com