Technical cooperation agreement is signed with the Federal Government to develop the recommendations of the Social Finance Task Force

Fórum de Finanças Sociais
Social Finance Forum

A assinatura do Termo de Cooperação Técnica com o Governo Federal, através do Ministério de Indústria Comércio Exterior e Serviços, aconteceu no dia 04 de Agosto, durante o Fórum de Finanças Sociais e Negócios de Impacto realizado em São Paulo. Este acontecimento representa um marco tanto para a Força Tarefa Brasileira de Finanças Sociais quanto para a Sitawi, integrante da diretoria executiva da iniciativa. Esta medida potencializa as 15 recomendações prioritárias, para efetivamente dar continuidade à consolidação do mercado de Investimento de Impacto.

“Ter no governo um parceiro comprometido com o avanço da nossa agenda traz um grande ganho para o setor”, comentou Leonardo Letelier, CEO da Sitawi.

Força Tarefa de Finanças Sociais
Composition of the Social Finance Task Force

In a meticulous and complete analysis of the Social Finance ecosystem, carried out by the FTFS, four levers were identified for its strengthening, which need to be jointly promoted: (1) the expansion of the offer of capital, (2) the increase in the number of Businesses and with high growth potential, (3) the strengthening of intermediary organizations and (4) the promotion of a favorable macro environment for Social Finance.

To move these levers and effectively continue the consolidation of the Impact Investing market, the Social Finance Task Force has defined 15 priority recommendations, with the respective suggested targets for the next five years and the appointment of key actors who should be directly involved in its realization.

Check out the recommendations:

Termo de Cooperação Técnica
Technical Cooperation Term

#1 High net worth individuals investing in impact financial products

The FTFS recommends that high net worth individuals, directly or indirectly (e.g. via Family Offices), encourage the financial institutions of which they are clients, as well as the investment fund managers who manage their wealth, to create investment financial products with social impact, and/or define, for existing products, an allocation percentage for this type of investment.

#2 Protagonism of Foundations and Institutes in Social Finance

FTFS recommends Foundations and Institutes (business, family and independent) to make donations and investments to enable pilot and innovative initiatives in the field of Social Finance and Impact Business.

#3 Expansion and capitalization of social funds

FTFS recommends that BNDES direct part of its contributions
annual amounts of non-reimbursable resources for the capitalization of Social Funds.

#4 Use of BNDES social sub-credit for Impact Businesses

The FTFS recommends that the BNDES make the term “Business with Social Impact” explicit in the list of valid applications for funds arising from the Social Subcredit (ISE Line) linked to the bank's economic loans. Other Development Banks and Agencies with similar mechanisms should also follow this recommendation.

#5 Inclusion of Impact Businesses in the companies' value chain

The Social Finance Task Force recommends entrepreneurs, executives and members of the Board of Directors to assimilate and adopt the concept and vision of Impact Business as part of their companies' strategy and to ask their teams to take practical actions to encourage these ventures. in your action plans

#6 Creation of models for the inclusion of Impact Businesses in government procurement

The FTFS recommends to the Academy, NGOs that work in public management, Institutes and Foundations that give visibility to existing initiatives and help in the consolidation of alternative models of purchase of products and services of Impact Business that can be replicated and scalable by the different governments.

#7 Calls for Impact Investment Funds

The FTFS recommends that federal (such as BNDES and FINEP), state (such as Desenvolvimento SP) and multilateral agencies (such as the IDB-Fumin, IFC, DEG, etc.) of Impact Investment in defining its criteria for making calls for investments in Venture Capital and Private Equity Funds.

#8 Strengthening incubators and accelerators to qualify more Impact Businesses

FTFS recommends that Companies, Foundations, Institutes and Government consider in their social investment strategies the inclusion of incubators and accelerators that include training and support for entrepreneurs with Impact Businesses.  

#9 SEBRAE support to impact business entrepreneurs

FTFS recommends that SEBRAE evaluate the multiple opportunities to link or strengthen the Impact Business theme in its training and support products for current and potential entrepreneurs, considering the challenge of networking them with a greater number of companies.  

1TP4Q10 Knowledge Production and Training in Social Finance, Social Entrepreneurship and Impact Business

The FTFS recommends that Higher Education Institutions (HEIs) include Social Finance, Social Entrepreneurship and Impact Business in the curriculum of the most varied areas, structure specific courses and direct efforts towards the production and dissemination of knowledge on this topic.

1TP4Q11 Innovative and financially sustainable formats for Impact Business financing

The FTFS recommends that financial market regulatory bodies, in particular the Central Bank and the Securities and Exchange Commission (CVM), establish rules for innovative fundraising platforms for companies, especially those at an early stage of development.

1TP4Q12 Promotion of a culture of evaluation among entrepreneurs and impact investors

The FTFS recommends that Higher Education Institutions and Evaluating and Certifying Entities build and implement a plan to disseminate the evaluation culture in Brazil for entrepreneurs and impact investors, following global trends in a common language and impact evaluation standards.

1TP4Q13 Integration of the Federal Government in the Social Finance agenda

The FTFS recommends that the Government incorporate the theme of Social Finance in the conduct of public policies, acting with a strategic vision to boost the field, through the feasibility of impact financial mechanisms and the strengthening of intermediary organizations

1TP4Q14 Social Impact Agreement

The FTFS recommends that the Federal Government support the development of an Impact Contract market Social, encouraging state and municipal governments to make use of this alternative tool and thus increasing the effectiveness of resource allocation for social interventions.  

1TP4Q15 Principles for Impact Businesses in Brazil

The FTFS recommends that Impact Entrepreneurs, Accelerators, Companies, Foundations and Institutes, Philanthropic Organizations, Financial Institutions, Academia and Government use the Principles for Impact Business in Brazil11 as a reference in the definition of Impact Business.  

Learn more about Social Finance recommendations and ecosystem http://forcatarefafinancassociais.org.br/recomendacoes/

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