GEMS is the Growth Enterprises Market Segment at the Nairobi Securities Exchange Ltd. It is the latest segment to be introduced at the NSE to cater for high growth SMEs who would like tap into the large capital source through the stock market in Kenya. Currently there are three companies listed at the GEMS including: Continue reading “NSE for Dummies: Listing your Company at the GEMS”
Global oil prices are experiencing a free fall with the ultimate bottom resistance point predicted at $40 per barrel. Increased supply from all leading world oil producers is termed to be the core reason why we are experiencing the downward slide of the “black gold” prices. The ripple effect this has on the global economy has been accurately predicted to be a fall in fuel prices; which then leaves millions of consumers with additional savings to spend. Continue reading “Falling global oil prices sparking Kenya’s economy to a vibrant growth”
The impact investing space is growing in Africa and could be the trigger this developing continent needs for faster sustainable development. As the MDGs are being replaced by the SDGs in 2015, new development concepts and policies are being floated for Africa to adopt. Impact investing could be one of the best strategies if embraced and well implemented across the continent.
Most African economies have poor basic public services in terms of healthcare, education, infrastructure, water, energy, housing and technology[i]. Efforts by the governments to improve the conditions in the past have been met with budget constraints and lagging implementation marred by corruption.
Nevertheless, many African countries have in the recent past adopted the Public Private Partnerships strategy as a way of bringing on board the private sector into the national development agenda. There is also increased democratization of governments as well as concerted efforts to tackle the security scare in most African countries. Both these initiatives have led to an increase in Foreign Direct Investments to the continent and especially in Sub Saharan Africa[ii]. This has eventually contributed a great deal to improving the situation on the ground, but still left some social gaps unattended to.
NGOs and other donors on the other hand have been doing a lot of work in Africa in trying to alleviate the poor economic status and fill the social gaps left. Major areas covered by donors and NGOs usually are in healthcare, education and sanitation[iii]. However, these interventions have been coming in terms of short-term projects that die out after a while, thus leaving the people drawing back slowly to their former poor economic state.
Based on the shortcomings from the donor dependency and the short-term effect of NGO projects, Africa therefore needs an alternative strategy to boost its economic development sustainably. It is on this background that impact investing is being advocated for; due to its focus on both financial returns and social good for the communities involved and the economy as a whole[iv].
Gaining momentum from 2007, the impact investing concept has made major milestones both in terms of funds mobilized an invested as well as the geographical coverage. South Asia and Sub Saharan Africa are the current major target regions by the asset managers and investors in the impact investing space. The focus is on improving livelihoods, conserve the environment and help mitigate some of the chronic social problems in those regions.
That combined focus on social benefits and financial returns fits well to the challenges facing Africa as a continent. The capitalistic economies in most countries in SSA have resulted in a few individuals growing wealthier each day at the expense of social welfare of the masses. With the requirement under impact investing to specifically measure the social impact from investments; investors will then be obliged to factor in environmental and social benefits to their investment plans. This will ultimately help to sustainably deal with the social challenges Africa faces, even as the investors grow their wealth through financial returns.
Africa is a frontier market and the opportunities it presents can best be capitalized on when the social welfare of its population is at the core of the development agenda. Impact investing presents such a strategy that is all inclusive in terms of social benefits and financial returns. As we focus on having sustainable economic development, it will be a great idea to have governments in Africa embrace the idea and formulate legislation that supports impact investing.
Article originally published on www.economywatch.com
[i] Liz Patterson (2014), ‘Building the impact investing market in sub-Saharan Africa and south Asia’ http://www.trust.org/item/20140408111517-zqns7/?source=spotlight
[ii] Ernst & Young (2014), ‘Foreign direct investment in Sub Saharan Africa on the rise’ http://www.ey.com/GL/en/Newsroom/News-releases/News-foreign-direct-investment-in-sub-saharan-africa-on-the-rise
[iv] Global Impact Investing Network (2014), ‘WHAT IS IMPACT INVESTING?’ http://www.thegiin.org/cgi-bin/iowa/investing/index.html
By AKIN OYEDELE:
Byron started the tradition in 1986 when he was the Chief U.S. Investment Strategist at Morgan Stanley. Byron joined Blackstone in September 2009 as a Senior Advisor to both the firm and its clients in analyzing economic, political, market and social trends. Continue reading “Byron Wien’s 10 Surprises for 2015”
The plant called the Omniprocessor, was designed and built by Janicki Bioenergy and backed by the Bill & Melinda Gates Foundation. The plant is said to prevent diseases caused by contaminated water supplies. Continue reading “Bill Gates Wants To Turn Your “poop” into Drinking Water!”
The year 2015 has began with a lot of optimism that was unprecedented as 2014 came to a close. All over a sudden everyone seem to be very confident about the year and the hopes remain high. Without much ado, I will also like to join the bandwagon and wish you a Happy New Year 2015!
However, even as we set our resolutions for this year and get started at a high pace, a few pointers are necessary. Continue reading “Happy New Year!”
2. The prospects of sovereign bond purchases by the ECB, amid political uncertainty sparked by Greece’s snap election
3. The continued drop in energy prices is a stimuluative writ large but poses challenges for oil producers and the leveraged eco-system that has been built on the premise of high oil prices forever. Continue reading “Investment Climate Shaping Forces #2015”