Impact and Thematic Investing in Africa – A Cause for Concern

Friday, November 13, 2015

According to new research from the UCT Graduate School of Business (GSB), almost half of all assets under investment in three of Africa’s most significant economies are being invested for good in some way – but professional investors still have a long way to go in terms of practice and disclosure.
The 2015 African Investing for Impact Barometer has revealed that 47% of $721bn of investment assets surveyed in South Africa, Kenya and Nigeria, the largest economies in South, East and West Africa respectively, were earmarked for positive impact; from Islamic finance to clean technology and building affordable housing.

But while many investment companies pay lip service to the practice, there are only a handful of industry leaders that are able to demonstrate that they do it consistently well, the researchers found. The report seeks to shine light on the practice of Investing for Impact (IFI) in Africa and to put the continent on the map as a global contender in this investment space.

“It is vital to quantify the African IFI market because it demonstrates to the rest of the world that investors operating in Africa are increasingly declaring their commitment to developing the continent in a sustainable manner,” said Dr Stephanie Giamporcaro, research director at the GSB.

Source: Biz Community (link opens in a new window)

impact investing, research