Clean energy alternatives for Central America

In 2007 Finnfund invested in the Central American Small Enterprise Investment Fund II (CASEIF II). CASEIF is a private equity fund for small and medium-sized companies in Central America. The fund size is USD 29 million and at  the end of 2012 the fund had invested in fifteen companies.

Other investors in the fund are the Multilateral Investment Fund/Interamerican Development Bank (MIF/IDB), the Andean Corporation Development (CAF), the Norwegian Investment Fund for Developing Countries (NORFUND), the Swiss Investment Fund for Emerging Markets (SIFEM) and the Belgian Investment Company for Developing Countries (BIO).

Positive social impacts

CASEIF II promotes growth in profitable companies that generate employment and taxable income and promote positive social impacts in their countries. The fund is managed by LAFISE Investment Management Ltd.

The fund portfolio companies have created 1,479 direct and 8,066 indirect jobs of which 38 per cent are held by women. The total tax revenues amounted to almost eight million dollars in 2012. Portfolio companies help reduce carbon dioxide emission by 40 000 tonnes a year.

A good example of CASEIF’s investments is TECNOSOL SA. In 2009 CASEIF made an equity investment of 1.15 million dollars in the company.

Clean energy

TECNOSOL provides clean energy alternatives for the lighting and refrigeration needs of rural Nicaraguan households, schools and hospitals that have no access to the main electricity grid. TECNOSOL has installed over 60,000 renewable energy systems like solar panels and thereby for the period 2008-2012 reduced carbon dioxide emissions by 16,000 tonnes.

CASEIF II takes an active approach towards its investees, providing them advice on strategic direction, corporate governance and business organization. CASEIF’s investment strengthens TECNOSOL’s Nicaraguan operation and has initiated its expansion to Panama, El Salvador and Honduras. TECNOSOL obtained ISO certification in 2011.

TECNOSOL improves living standards by providing energy solutions to poor families with no previous access to power. TECNOSOL currently employs 106 people directly of whom 36 per cent are women and 42 per cent young employees aged 18-30 years.

In 2010, for the third consecutive year, TECNOSOL was awarded the Excellence in Business Development Award by the Inter-American Development Bank. It also took second place in the 2010 London Ashden Awards in the category of Innovative and successful energy initiatives.