Impact Investing and Importance in achieving SDG Goals in Africa
How Impact Investing could sustainably galvanize the achievement of the Sustainable Development Goals, an OjirehPrime call-to-action special.
Impact investing is an investment strategy made to generate positive, measurable social and environmental impact alongside a financial gain. One of its major aims is to use money and investment capital for positive social results, taking the form of numerous asset classes which may result in many specific outcomes. Investors using impact investing as a strategy consider a company’s commitment to corporate social responsibility evaluating their sense of duty before becoming fully involved with that company. The growing impact investment market provides capital to address the world’s most pressing challenges such as microfinance, affordable and accessible basic services including housing, good healthcare, education, affordable and clean energy. Impact investment has constantly challenged the long-held views that social and environmental issues should be addressed only by philanthropic donations, and those market investments should focus exclusively on achieving financial returns. Impact investing offers diverse and viable opportunities for investors to advance social and environmental solutions through investments.
When looking at the SDGs, there are such categories as providing access to clean and affordable energy, reducing poverty, creating more sustainable cities and communities, reducing poverty et al. Every goal has targets that require some sort of financial investment. It was estimated by the UN that developing countries alone face a USD 2.5 trillion gap in financing. Impact investment plays a pivotal contributing role as it has unlocked private capital to address societal issues. Impact investors raise and direct new capital to address pressing social and environmental challenges such as ending poverty, protecting the planet, and ensuring that all people enjoy peace and prosperity by 2030 directly targeting progress toward the SDGs. The massive growth in the scale, breadth and public recognition of the emerging transformative investment market is gradually changing and making traditional entrepreneurial, investment, and charitable activities adapt to creating new opportunities not only for profit but also for achieving sustainable development goals.
Our future is interdependent, impact investing has been an agent of social change, redefining our notions of value allowing us to be a part of social change that makes a measurable difference for our planet and future generations driving positive change. It has so changed the culture of investing today investors position themselves to take advantage of this energy and to further bring impact investing into the mainstream. The private capital is constantly filling the financial gap in assistance to government grants just to meet the Sustainable Development Goals (SDGs) in developing countries.
Barclays, a British multinational universal bank set precedence in June 2020 with the launch of Impact Agora that Digital Banks and Fintech on the continent can champion this — a platform to bring together the investors and intermediaries who are working with directly entrepreneurs seeking to promote impact investing. Impact Agora provides shared technology and builds a community of member institutions, thereby reducing barriers to investment and raising the profile of impact investing intermediaries and entrepreneurs. Startups like OjirehPrime are stepping up with investment initiatives that impact investors or prospective could drive this through, powered by Solid Allianze Microfinance Banks — Interested investors can indicate interest and request a call here.
The time for impact investing to scale in Africa is now!
What are your thoughts?
Written by Ameh Ujah and Jessica Fetun
