Author name: Rahila Rahimou A.

Finance in Common 2022, a summit on impact investing in Africa: part 2/2

One of the main challenges when it comes to investing in human and environmental impact in Africa remains the opacity of information and the lack of knowledge of the sector and the actors between them. Indeed, throughout the summit, the exchanges we had during networking sessions and workshops where we could discuss between participants, the difficulty of transmitting the right information at the right time returned. For example, in the area of the three Sahelian borders, made up of Burkina Faso, Mali and Niger, it is very difficult to find an SME in which to invest in impact in general. This is an experience shared by one of the country representatives of I&P (impact investment funds based in several African countries) when he is interested in companies that are not at the stage of development or scaling up. The non-formalization of SMEs and their lack of structure largely explains this difficulty in finding partners. 

Finance in Common 2022, a summit on impact investing in Africa Part 1/2

The impact investing market in Africa is still developing, but it is constantly growing. Indeed, according to the "African Investing for Impact Barometer" report published in 2021, the impact investing market in Africa reached $2.1 billion in 2020, registering an increase of 43% compared to the previous year. This type of investment is becoming increasingly popular around the world, including in Africa. The African impact investing market is booming. According to the Global Impact Investing Network (GIIN), impact investing in Africa has increased dramatically in recent years, from $2.3 billion in 2015 to $8.2 billion in 2019. Since 2020, despite the COVID-19 pandemic, the impact investing market in Africa has continued to grow.