Globally, more businesses are developing and implementing innovative solutions to deliver impact for a more sustainable future which yields inclusive growth and a return on investment. Impact investing is steadily increasing in Africa - the fastest-growing continent in terms of human capital, technology adoption and natural resource supplies, and is well-positioned to build on its current momentum moving forward. Roughly 8% of the assets of impact intent funds are focused on Africa, while less than 1% of traditional private equity funds go to the African continent.
In addition to providing employment opportunities for two-thirds of the continent’s working population, 60% of the world’s arable land is in Africa, identifying agriculture as a critical sector for private-sector investment to drive socio-economic development. Despite a rise in the number of medium-sized farms, increased smallholder productivity is expected to be the biggest growth driver for the sector. Against the backdrop of the climate crisis, there is also a growing need to invest in ‘climate-smart’ agriculture to reorient agricultural systems to effectively ensure self-sufficiency and food security under climate change, tightening the linkages between agriculture, technology, infrastructure, logistics, microfinance and trade. While African exports have seen their fastest growth since 2010, the volume remains at 3% of global trade. In the absence of significant government intervention, how can DFIs, private equity firms and funds continue to leverage impact led investing to unlock Africa’s growth potential?
Speakers