Impact Investing Strategies in Africa

For investors who want to make an impact, Africa is an obvious place to start. The continent’s rapidly growing and urbanising population, coupled with its resource wealth, is set to be one of this century’s economic mega-trends. At the same time, almost 600 million people in Africa lack access to electricity, four in 10 live without safe drinking water, a fifth of primary-aged children are out of school, and 237 million people are malnourished.

It should come as no surprise, therefore, that impact investing has begun to take hold in Africa. From creating employment, to strengthening infrastructure or supporting agriculture, opportunities abound for investors to address social problems while meeting consumer needs. According to the Global Impact Investor Network’s 2020 survey, 43 percent of impact investors have funds allocated to Africa – more than any other emerging market region. And 52 percent of investors surveyed plan to increase their Africa exposure in the next five years.