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The Missing Ingredient in Impact Investment in Africa: A New Financing Model for Business Advisory Service Providers Tackles the ’Lack of Investable Pipeline’ Challenge
Despite the growth of impact investing in Africa, investors still face a commonly cited constraint that could impede future deal flow: the lack of investable pipeline. But according to John Scicchitano at Pangea Africa and Rob Mills at Social Finance International, the main reason for this issue is the fact that African small and medium enterprises (SMEs) often struggle to meet the technical standards that impact investors demand, while lacking the network that could connect them to these investors. They explore how business advisory service providers (BASPs) can help meet these needs for SMEs, and present a new financing mechanism that can help BASPs scale up their investment facilitation support.
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- Investing
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Farming Under Solar: How Agriphotovoltaics Can Transform Rural Livelihoods in India
As India scales up solar energy, a critical question has emerged: Can this transition deliver clean power without displacing farmers from their land? According to Laxmi Sharma, Bidisha Banerjee, Subhodeep Basu and Ashok Gulati at the Indian Council for Research on International Economic Relations, the country's renewable energy expansion has been led by large, ground-mounted solar projects, often located on agricultural land. But while this model has been effective in scaling solar capacity, it has also created a disconnect between the energy and agriculture sectors, while limiting participation among farmers. They explore how agriphotovoltaics (Agri-PV) can address these issues by enabling the cultivation of crops beneath or between panel arrays, and discuss the pros and cons of different Agri-PV operating models.
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- Agriculture, Energy
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The Hidden Filters: How to Fix the Biases that Skew Investment Pipelines Away from Women Founders
Over the past decade, gender lens investing has moved from the fringes of impact investing into a more mainstream priority for many investors. But as Michal Januszewski at LeFil Consulting argues, while the overall gender-lens thesis has gained traction, the actual representation of women-led businesses remains stubbornly low within investor portfolios, with women-only founding teams capturing just 2.3% of global VC funding in 2024. He explores the structural and behavioral biases that can exclude women founders in each stage of the investment funnel, and shares practical recommendations on how investors can address them.
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- Investing
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Three Questions for Five African Businesses: Insights from Sankalp Africa Summit’s ‘Enterprise Showcase’
The recent Sankalp Africa Summit featured an “Enterprise Showcase” where up-and-coming African businesses shared information about their work and missions. NextBillion interviewed five of these entrepreneurs and company representatives, asking each of them three questions: What are the main challenges you’re facing in running your business? What kind of support would help you overcome these challenges? And what’s one thing you wish funders understood about your business needs? Their responses reveal some of the innovative approaches and key issues that are emerging in Africa’s vibrant ecosystem of small and medium-sized enterprises.
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- Agriculture, Energy, Environment, Social Enterprise, Transportation, WASH
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Accelerating Climate-Health: How the Sector Can Become Africa’s Next Strategic Investment Frontier
Africa faces a growing dual challenge at the critical nexus of climate and healthcare, as countries and health systems that are already strained by chronic underinvestment must now also deal with climate-related shocks and disease burdens. As Rajat Chabba at the William Davidson Institute and Martin Slawek at Open Capital Advisors explain, without targeted investment in integrated climate-health solutions, these health systems risk becoming overwhelmed, undermining public health and climate resilience across the region. But they also argue that these pressures create a clear opportunity for investors, businesses, and public and development-sector players. They explore why climate-health presents a compelling investment case in Africa.
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- Energy, Environment, Health Care, Investing
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When Uncertainty Becomes Structural: Entrepreneurship Support Organisations as Ecosystem Infrastructure in a New Fiscal Reality
Over the past year, the global development sector has changed at a speed and scale that would have seemed unlikely even two years ago. According to long-time development consultants Stephen Hunt and Nelson Okwonna, as funding dries up and uncertainty becomes structural, entrepreneurship support organizations (ESOs) are increasingly providing the collective functions that were once financed, governed and sustained through donor- and publicly funded programs. They discuss the implications of this shift for ESOs and entrepreneurs, exploring what it reveals about the key needs of entrepreneurship ecosystems — and about how ESOs must evolve to meet those needs.
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- Social Enterprise
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The Myths and Realities of Inclusive Insurance: Lessons from the Field
Across low- and middle-income countries (LMICs), insurance penetration is around 1% of GDP, compared to a global average of around 7%. According to Rehan Butt at Instaful Solutions, policymakers, donors and insurers have increasingly turned to “inclusive insurance” to reach LMIC customers — yet they often mistakenly approach it as a scaled down or charitable version of traditional insurance. He argues that inclusive insurance represents a fundamentally different business model, with distinct product design, processes, distribution and economics, and highlights some misconceptions that can cause these insurance products and programs to underperform.
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- Finance
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Designing Finance for the Realities of Youth: Applications are Open for the Newly Renamed Luxembourg Award for Inclusive Finance
Over 1.3 billion people in emerging economies are between 18 and 35, and the median age in some developing countries is in the teens or low twenties. As Sam Mendelson at e-MFP and Tim Nourse at Making Cents argue, young people represent the economic center of gravity in the Global South, yet financial systems were not designed to serve their shifting needs. They explore opportunities to unlock youth-inclusive finance — the theme of this year's Luxembourg Award for Inclusive Finance (formerly known as the European Microfinance Award).
- Categories
- Finance
