investing for impact barometer
DESCRIPTION
University of Cape Town Graduate School of Business and the Bertha Centre for Social Innovation and Entrepreneurship's Dr Stephanie Giampocaro and Dr Francois Bonnici unpack the results of the 2014 African Investing for Impact Barometer. The Barometer depicts the spectrum of investors in Africa who seek to combine financial returns to help make a positive impact on society and the environment. It acts as a lens in which to view the fast-growing Investing for Impact (IFI) market in the two countries surveyed. Research for 2014 reveals that there’s been a significant boost in the IFI market in South Africa and Nigeria, both countries have indicated a 41% and 31% respective make up in IFI funds. * Dr Stephanie Giampocaro is research director, barometer director and a senior lecturer at the University of Cape Town Graduate School of Business. Her research explores how responsible, sustainable and impact investment concepts and activities are implemented in developed and emerging economies. Her academic theoretical roots are market sociology and anthropology, social studies of finance and economic sociology. * Dr Francois Bonnici is the director of the Bertha Centre of Social Innovation and Entrepreneurship. He has been trained as a medical doctor and holds a Masters degree in Public Health, as well as an MBA. He is also a senior lecturer at the Schwab Foundation for Social Entrepreneurship.TRANSCRIPT
BRIEFING
Investing for Impact: Reaching the tipping point?
Dr Stephanie Giamporcaro | Dr François Bonnici | 9 Sept 2014
First academic centre in Africa dedicated to social innovation, using academia and demonstrative projects to address needs and pursue a more fair & inclusive world. Teaching, Research, Dialogue, Impact Key Areas § Innovative Financing § Inclusive Healthcare Innovation § Education Innovation § Scaling, Policy & Ecosystems § Innovation Spaces
Bertha Centre
Innovative Finance Initiative
The Innovative Finance Initiative is built around the need to develop a local impact-focused, social investment market in Sub-Saharan Africa to operate independently as well as partner with international investors.
In our experience, despite the vast opportunities for social and economic impact across the continent, the regional market for investing for impact is relatively immature with underdeveloped market infrastructure with inefficiencies, leading to high cost structures for investments with impact
Innovative Finance Initiative
We have an ecosystem approach to our market-building mission and developed strategies to address both the demand and supply sides: • We are educating stakeholders across the public
and private spheres to bring willing participants into the market, lower real and perceived barriers to investment and increase the availability and access to information on investing for impact.
• We are conducting research on innovative financing in Africa and globally to create our knowledge base.
• We are partnering with industry players to create investment and funding opportunities.
OVERVIEW About the Barometer
What is in the Investing for Impact spectrum?
• Responsible Investing • Socially Responsible Investing (SRI) • Environmental Social Governance (ESG) • Shar’iah-compliant
• Impact Investing
• Not Corporate Social Investing (CSI) • Not Development Finance Institutions
Samples and markets: Going Pan-African
• 2nd edition • Includes South Africa
and Nigeria
41% of all funds “described as” committed to IFI
IFI language is mainstreaming & pie is growing
Barometer pioneering insights into Nigeria
Private Equity leads the way in Nigeria
Comparison of both countries
HOW MUCH ARE INVESTORS SHARING?
Communicating on IFI
A wide spectrum of disclosure and reporting practices
In IFI spectrum, core RI remains small
IFI LEADERS – Asset Managers
IFI LEADERS – Private Equity
MAIN TAKE-AWAY MESSAGES Communicating on IFI
MAIN TAKE-AWAYS
• The IFI space represents a rising and significant part of the South African and Nigerian investment industry.
• This momentum needs to be acknowledged.
• We call for growing transparency of investment strategies and portfolios.
• Advanced and refined metrics need to be developed in order to assess how these practices positively impact society and the environment at large.
END
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