The European Commission, Germany’s Ministry for Economic Cooperation and Development (BMZ), and KfW Development Bank have launched a new €80 million Social Entrepreneurship Fund to support businesses that create both social and environmental impact across the Middle East and North Africa (MENA).

The program has raised €45 million in investment through the partnership and is expected to raise an additional €35 million later this year in long-term loans. The funds will be used to support the growth of social enterprises creating jobs and expanding their products and services in the areas of education, health, financial inclusion, and climate change.

According to the partners, over 85% of the people in the region work for small and medium-sized enterprises, and yet, there are significant obstacles to the financing of social enterprises. This fund was created to meet this challenge, by providing equity investments and technical assistance to assist social enterprises, with an emphasis on companies managed by women using innovative, green solutions and technology.

The fund will invest in early-stage startups and businesses that tackle social challenges while remaining financially sustainable. Its long-term goal is to reach more than 136,000 people and attract over €67 million in additional private investment to support inclusive economic growth across the region.