New Report On Southern Africa Highlights Hotbed of Impact Investing Activity, With Over USD 5.7 Billion From Non-DFI Impact Investors
The Global Impact Investing Network (GIIN), in partnership with Open Capital Advisors, published The Landscape for Impact Investing in Southern Africa, a state-of-the-market analysis of the impact investing industry in the active region. The report includes findings from 12 countries, as well as a dedicated chapter exploring the role of development finance institutions (DFIs) across Southern Africa.
The report analyzes a market comprising countries that vary substantially in their level of development but that present common challenges and opportunities for investments to have social and environmental impact. Progress has been made on key development indicators in South Africa, the region’s anchor, but there remain significant gaps in the provision of vital goods and services across the region. Despite recent economic growth, half the region’s population (double the global average) lives on less than USD 1.25 per day. Looking forward, Southern Africa’s GDP is projected to continue to grow by five percent per annum.
International DFIs are significant players in the market, having deployed nearly USD 16.8 billion in impact capital across the region through over 650 deals. South Africa-based DFIs also play a pivotal role and have deployed USD 17.1 billion regionally through over 7,500 deals. Additionally, several other types of investors—including VC/PE funds, foundations, commercial banks, and pension funds—actively invest in the region, with such non-DFI impact investors having deployed nearly USD 5.7 billion in the region through more than 500 deals.
