Southern Africa Impact Investing Hotbed

After analysing the impact investing market in Asia, East and West Africa, GIIN, together with Open Capital Advisors, has now also analysed the Impact Investing market in Southern Africa. Many believe Impact Investing has not yet reached the region, however, their findings suggest the contrary. The study included 12 countries, being South Africa, Zambia, Mozambique, Zimbabwe, Madagascar, Malawi, Namibia, Angola, Mauritius, Botswana, Lesotho and Swaziland.

International DFI’s deployed USD 16.8 billion spread over 650 deals. South Africa-based DFI’s, in turn, invested USD 17.1 billion spread over 7500 deals. Other type investors, such as VC/PE funds and commercial banks, have invested USD 5.7 billion spread over 500 deals.

There are stark differences in the region as half the regions population lives on less than USD 1.25 per day. The opportunities for impact investors, therefore, vary from country to country. High-potential sectors for the region include agro-processing, energy and supply chain integration. For Southern Africa, unlike the rest of sub-Saharan Africa, agriculture is a small contributor the region’s GDP, yet the sector employs the majority of the population. For that reason investment in agriculture is seen as an important tool for increasing incomes and food security. For further insights please check out the entire report ”The Landscape For Impact Investing in Southern Africa”.

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