Insights from AGC’s 2026 Impact Report
Emerging markets continue to play a pivotal role in shaping the next phase of global economic growth. While headlines over the past decade have been dominated by volatility – from pandemics and inflation to geopolitical tension – many businesses across these markets have continued to adapt, invest, and grow through recurring shocks.
As highlighted in our 2026 annual Impact Report, many developing economies have demonstrated resilience in the face of macroeconomic uncertainty. That resilience is not uniform: outcomes vary by country, sector, and policy framework. Across parts of the portfolio, stronger policy frameworks, reform progress, and resilient local demand are helping some economies navigate volatility more effectively than others.
This strength is reflected in the broader outlook, even after recent shocks. The IMF’s April 2026 outlook projects emerging market and developing economies to grow by about 3.9% this year, still well ahead of advanced economies, despite pressure from higher energy prices, tighter financial conditions, and geopolitical uncertainty. Growth is being supported by rising populations, shifting supply chains, digital infrastructure, commodity demand, and structural reform in selected markets.
For impact investors, the implication is not simply to pursue emerging-market exposure broadly, but to identify where resilience, reform, and real-economy growth are translating into sustainable opportunity. As global portfolios seek diversification and long-term return potential, access to these regions remains highly relevant – particularly where capital can support inclusive growth, productivity, and durable local enterprise.
Addressing the financing gap
Across emerging markets, however, significant financing gaps continue to limit the strength of the opportunity – holding back progress and hindering ambition.
The challenge facing small and medium-sized enterprises (SMEs) is a clear example of this. Making up 99% of businesses and creating 7 out of 10 jobs, SMEs are economic engines of developing economies. Through their day-to-day operations – selling goods and services, employing local workers and participating in supply chains – they play a critical role in job creation, infrastructure development, inclusive economic development and the increased resilience of local supply chains and financial ecosystems.
Yet many remain constrained by limited access to reliable working capital. In some emerging markets, SMEs receive as little as 5% of bank funding. From retailers in Latin America to manufacturers in sub-Saharan Africa, businesses are struggling to secure the finance needed to operate and grow – with women-led enterprises particularly likely to face financing barriers. In total, the SME funding gap across developing economies is estimated at $5.7 trillion.
This gap is seen in the in the day-to-day realities of businesses in these regions. Where access to sustainable, reliable finance is unlocked, the impact has proven to be immediate and far-reaching. Across AGC’s portfolio, we see this play out in local economies.
In Colombia, support provided through AGC and our financing partner Fintra S.A. enabled local furniture business Mueblería La Sampuesana to stabilise and expand its operations. Founded by Edelmira Rosa Montes Peralta with just three employees, access to working capital allowed the business to strengthen and grow its customer and employee base. Today, it supplies 14 clients across major cities, including Barranquilla, Cartagena and Medellín.
In Botswana small manufacturing business, Mr & Mrs Chem, is producing cleaning products for households, schools, and hospitals. Financing through local AGC partner Ticano, enabled Mr & Mrs Chem to stabilize production, meet delivery timelines, and grow its customer base -supporting business expansion and reliable local supply.
“With AGC’s partner Ticano, I’ve never failed meeting my deliveries on time.
— Thato Kgwatalala, Mr & Mrs Chem
The results at a glance
Over more than a decade, AGC’s approach has scaled across regions and sectors.
AGC has facilitated over $9.1 billion in working capital across 68 countries, supporting 76,867 businesses through our network of 104 local financial institution partners. Our work has supported approximately 3.6 million jobs and, more broadly, the livelihoods of an estimated 108 million people.
Across the markets in which we operate, these businesses are contributing to real economic activity in more than 18 sectors. These include construction, engineering, transportation, information technology, healthcare, and retail – ensuring portfolio diversification across both geography and sector.
Our focus on advancing gender equity also continues to guide our approach. of the small businesses we supported in 2025 were led by women, and 43% were female-owned 100% of SMEs in our portfolio have programs targeting women or other underserved groups, and we lead by example as a 100% women-owned firm.
Find out more
The findings in this year’s Impact Report reflect more than a snapshot in time – they highlight a structural dynamic that continues to evolve.
Across emerging markets, demand for working capital remains high. At the same time, the infrastructure needed to deliver that capital efficiently – through local financial partners – continues to strengthen.
For AGC, this creates a clear path forward: to deepen existing partnerships, expand into new markets, and continue to scale a model designed to support both economic activity and long-term impact.
As we look ahead, our focus remains consistent – deploying capital in support of real businesses, to strengthen local economies and deliver meaningful outcomes to our investors over time.
