‘Impact investing’ – which refers to investments made with the specific objective of achieving
positive social or environmental impact alongside a financial return – has been identified as an
effective approach to address socio-economic challenges, such as poverty, inequality, and
environmental degradation.
In the context of the African continent, some progress has already been made; South Africa has
the largest amount of assets dedicated to one or more investing for impact (IFI) strategies,
followed by Nigeria and Kenya*. Despite the promising sparks of activity in this field on the
continent, the market remains fragmented and at different stages – and such efforts face
challenges of unpredictability, capacity, and market volatility.
When it comes to upskilling and capacity-building for finance practitioners, there are very few
existing local accredited courses in the area of impact investing. With one exception – the only
Africa-focused impact investing course available on the continent from globally renowned South
African university, The University of Cape Town Graduate School of Business – that was
designed in partnership with specialised centre, the Bertha Centre for Social Innovation and
Entrepreneurship in 2016. Since then, “The Impact Investing in Africa” Executive Development
Course has been running annually in South Africa with success, with the bulk taking place
in-person and some online iterations during the COVID-19 lockdowns.
In an effort to broaden its reach with relevant industry audiences on the continent – from wealth
managers, consultants, funders, and other financial intermediaries – this course will be hosted in
Kenya for the first time in July 2024. Course co-convenors are Shiluba Mawela CA (SA)
Managing Partner at Tshiamo Impact Partners, together with Daniel Steenkamp and Jason Van
Staden of the Bertha Centre Innovative Finance team.
“To increase impact investment, and ultimately impact, requires a multipronged approach – such
as training, collaboration, knowledge sharing and innovation. The potential of impact investing is
powerful, and we’d like to see more ecosystem development for different stakeholders to
collaborate to solve Africa’s social and environmental problems,” says Van Staden.
“The BerthaCentre for Social Innovation and Entrepreneurship is at the forefront at building this ecosystem by equipping investors with knowledge, tools and networks to scale their impact. “
‘The Impact Investing in Africa’ course covers training on catalytic capital, blended finance and
social impact bonds – all examples of innovation in the finance sector for scaling social and
environmental impact on the African continent. With East Africa being recognised as one of the centres of global impact investing on the continent, there is a lot to be said for cross-regional learning and knowledge-sharing opportunities as well.
“In the context of some developmental constraints and the many opportunities for investment
the African market presents, increasing the footprint for education on impact investing to a major
financial capital city like Nairobi couldn’t have come at a more pertinent time. Our end goal here
is simple; to reach and equip more investors from across the continent with the skills and
knowledge to grow impact investing,” says Mawela.
In order to best leverage this investing approach for the continent, education and increased
awareness on the topic in the finance sector is crucial. It is therefore imperative that across the
financial services spectrum, everyone from seasoned investors to burgeoning entrepreneurs
comprehend the foundational principles and advantages of impact investing.
“Typically, impact investing course offerings are all from the global North. Being rooted in Africa
in the work we do in this space lends the course a unique perspective from an “in the trenches”
experience. It drives the agenda from the perspective of what is really needed and working in
our African context,” says Steenkamp. “We also hope to clear up some of the common
misconceptions about impact investing, which includes this idea that impact comes at a cost of
fair returns.”
The trends indicate that there is more funding set to flow into the continent for impact investing;
a third of investors surveyed in a 2023 report by Global Impact Investor Network (GIIN) said
they plan to increase allocations to sub-Saharan Africa over the next five years. With these sorts
of funds being directed towards investments that yield positive social and environmental impact
outcomes, alongside financial returns, it seems that impact investing has the potential to
reshape Africa’s future in a positive way.
“The Impact Investing in Africa” specialised short course will take place in person for the first time in Kenya this July 2024, and is aimed at wealth managers, consultants, funders and other financial intermediaries to equip them with expertise on the rapidly growing field of impact investing.
