Impact investment trends in Africa.
'Impact' investments are defined as generating social and environmental impact alongside a financial return. As the development industry landscape shifts, such investments are increasingly targeting sub-Saharan African (SSA) markets, especially in finance, energy and agriculture sectors. As of end-2014, an estimated 50 billion dollars had been invested in the space globally. Although this is a fraction of the 62.3 trillion dollars in private global assets under management across products, the 'impact' sector is expanding across asset classes and gradually moving into the financial mainstream.
Impact investing reflects wider policy and industry recognition of the private sector's role in meeting development goals.
Donor austerity keeps this on policy agendas, but developmental bottlenecks are increasingly seen as hurting corporate growth plans too.
SSA governments welcome this approach, particularly given financing innovation through public-private partnerships.
