Microfinance Paper Wind-Upwards: “The Landscape For Social Investments Inwards Southern Africa;” Past Dr Frank Aswani, Nancy Kairo, Oluwatoyin Adegbite-Moore, Rachel Keeler; Published By African Company Philanthropy Alliance (Avpa)

This study presents enquiry on “social” investors inwards Republic of Republic of Angola, Republic of Botswana, Mozambique, South Africa, Zambia too Republic of Zimbabwe. The authors define social investment as “fiscal inward improver to non-financial upper-case letter of the alphabet deployed according to rigorous investment principles to generate positive social together with environmental impact, with varying financial render expectations.” The dataset draws on most 250 investors, 71 pct of which are based in South Africa.

The authors refer info from the Sustainable Development Goals Center for Africa indicating an annual gap of USD 500 billion to USD i.ii trillion between actual investment flows inwards add-on to the amount needed to accomplish the UN Sustainable Development Goals (SDGs). Meanwhile, from 2013 to 2018, official evolution assistance too strange directly investment declined xx per centum too 45 percent, respectively. In terms of progress toward the SDGs, the portion is performing best on “Climate Action” too “Partnerships for the Goals” patch it is performing to the lowest level well on “Good Health equally well every bit Well-Being;” “No Poverty;” “Peace, Justice equally good as Strong Institutions;” “Reduced Inequalities;” as well equally “Zero Hunger.”

Over 4th dimension, authorities inward add-on to private sector initiatives have got got contributed to the increment of the social investment industry. For instance, Zambia created its Republic of Zambia National Advisory Board for Impact Investment inwards 2019. However, most corporate social investment in improver to venture capital letter letter is concentrated inward South Africa, due to the sophistication of private philanthropy every bit well as the institutionalization of corporate investing inwards that land.

The challenges faced past Southern Africa’s social enterprises together with startups include: (i) on the supply side – insufficient access to funding; (2) on the demand side – lack of cognition nearly financial systems every bit well equally limited numbers of highly skilled employees; too (iii) on an manufacture-wide grade – distressing macroeconomic weather condition status, rural entrepreneurs lacking information access as well every bit the high cost of telecommunication services.

Going forrad, the authors recommend that industry stakeholders: (one) part to “prepare enabling surround[s] as good as infrastructure;” (2) “empower organisations delivering social change”; as well (iii) “catalyse various equally well as innovative puddle[s] of social upper-instance letter of the alphabet.” For instance, they are inward favor of increasing governments’ roles inward social investment, creating option funding models for NGOs, too developing noesis together with information tools.

This is a summary of a paper past Dr Frank Aswani, Nancy Kairo, Oluwatoyin Adegbite-Moore, Rachel Keeler; published past the African Venture Philanthropy Alliance; Nov 2020; 133 pages; available at https://avpa.africa/landscape-report-southern-africa/.

By Romil Pandey, Research Associate

Additional Resources

AVPA homepage


SDGs website


“Africa 2030 SDGs Three-Year Reality Check”


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