Regional Deep-Dive: Africa: Challenges and Opportunities for Impact Investing

Moderator: Jessica Pothering, Reporter, Dealflow Editor, ImpactAlpha

Speakers:

• Eren Kelekci, Chief Private Sector and Blended Finance, African Development Bank

• James Magor, Director, Responsible Investment, Actis

• Marie-Aimee Boury, Head of Impact Based Finance, Societe Generale

• Wale Okunrinboye, Investment Analyst, Sigma Pensions

• Yinka Awosanya, Corporates & Governance Editor/ Team Lead, Intelligence by Techpoint, Techpoint Africa

During this panel we looked at the investment value chain from different perspectives, including those of asset owners, fund managers, investee companies, and Development Finance Institutions (DFI). We did so by discussing the investment landscape of the African region. A focus was laid on what kind of impact and return investors generate and how the Covid-19 pandemic has affected these markets specifically. 

One of the main aspects the speakers addressed throughout the panel was the underexplored aspect of innovation and the unlocked opportunities that define the African continent. According to the moderator of the panel, Jessica Pothering (Reporter and Dealflow Editor at ImpactAlpha) “we need to move away from focusing on risk and explore opportunities for innovation”. The panelists agreed that although the African continent has long been perceived as a recipient of donor money, times have changed and investors can generate financial returns along with environmental/social impact. Eren Kelekci (Chief Private Sector and Blended Finance, African Development Bank) highlighted the role of development finance institutions in this process, focusing on creating a market that incentivizes the entry of private investors.

With respect to impact investments, Adewale Okunrinboye (CFA, Investment Analyst, Sigma Pensions) emphasized that many African countries, and specifically Nigeria, require cooperation with international organizations as they do not have an integrated ESG framework yet. This cooperation must, however, be aligned with local needs and investors must recognize the diversity that defines the market.