In 2013, the United Nations Development Programme (UNDP), through its territorial private segment unit African Facility for Inclusive Markets (AFIM), delivered a lead report on “Realizing Africa’s Riches – Building Comprehensive Businesses for Shared Prosperity”. One of the report’s critical findings was the requirement for impact investment – the assignment of capital into undertakings, reserves, and organizations with the desire for a budgetary return and a positive natural and social impact – to goad the development of comprehensive businesses in sub-Saharan Africa.
The concept of impact investing is widely acknowledged as directing capital to firms that generate social or environmental benefits apart from profits. As an investor, you make investments intending to generate positive, measurable social and environmental impact alongside a financial return. However, advocates of impact investing say that it is suitable for individual investors; with many funds advertising, they seek results for the world’s challenges without sacrificing performance. In other words, they claim that impact investing won’t just do good — it will make you money.
However, there are many issues on the ground, such as the fact that capital is not necessarily reaching the most impactful business models and that the promised returns may not be realized. In addition, there seems to be a gap in understanding between foreign impact investors and local entrepreneurs that needs to be bridged for capital investments into locally founded businesses with long-term growth potential.
So, what is going on? The vast majority of impact investment firms operating in Africa source funds from outside Africa, and most make investment decisions outside Africa, too. However, recent evidence suggests that the biases and behaviour of foreign impact investors may not lead them to invest in the local entrepreneurs with the best chance of long-term financial success and social impact.
The webinar will address issues and concerns relating to Impact Investments in Africa and its sustainable development. It will provide an opportunity for key stakeholders in the business investment and development sectors to collaborate on how to achieve sustainable investment growth in Africa and serve as a forum to explore the inherent benefits that reaching this growth would accrue.
According to the organisers, ThistlePraxis Consulting, “This webinar is crucial because it will bring together business leaders, regulators, investors, government officials, experts, and practitioners in the sectors of the economy critical to sustainable development. It will also help chart a clear roadmap for effectively integrating solutions for Impact Investments in Africa.
During this Webinar, we will try to address different areas related to the theme, such as:
How do we raise impact funds from within Africa?
Beyond the hype, what are the real issues affecting impact investments locally?
Who and What are the current drivers of Impact Investments in Africa?
Where is the place of African financial institutions in this discourse?
Venture Philanthropy or Impact Investments – Is there a difference?
A call to action – how do we drive a vibrant community of African investors & funders?
This edition of Sustainable Conversations™ will take place on July 28, 2021, 11 am – 1 pm, via the Zoom video conferencing app.
