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.
Launched in 2024, 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.
A critical factor behind this progress has been the strength of the partnership among GGSF stakeholders — from the Fund’s Board and investors to the fund manager, portfolio managers and technical assistance providers. This collaborative model has ensured alignment on gender goals, responsiveness to market realities, and shared ownership of outcomes, helping the Fund deliver both scale and substance in its first year.
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 17 June 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.
A panel of impact investment managers shared practical lessons from the field. Participants included Incofin Investment Management, Triple Jump, responsAbility Investments, and NIRAS International Consulting. Together, they reflected on the internal alignment, data systems, and long-term support needed to turn gender strategies into practice — reinforcing the value of GGSF’s combined investment and assistance model.
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 second panel highlighted this local ecosystem and featured perspectives from the Female Entrepreneurship Fund (FEF), the International Social Finance Accelerator (ISFA), and the European Investment Bank (EIB). Moderated by 2X Global, the discussion focused on how institutions can align internal policies, financial instruments, and partnerships to translate gender commitments into scalable, lasting change.
From inclusion to influence
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.
With a goal of 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).
For more information, visit www.ggs-fund.com