An inventory of challenges in scaling impact investing for various stakeholders groups
New report! Ecosystem Building in Emerging Markets, an inventory of challenges in scaling impact investing for various stakeholders groups. The publication examines the distinct challenges to scale impact investing in emerging markets, faced by two key groups: Dutch stakeholders and African GSG Impact National Partners.
Published today by the Netherlands Advisory Board on impact investing (NAB), it helps gain a clearer understanding of the barriers that hinder investors from scaling their impact allocations in emerging markets. Being able to focus on the path forward and unlocking the full potential of impact investing in emerging markets requires a collaborative effort.
The NAB is committed to fostering collaboration among investors, governments, field builders and local ecosystems to drive positive change through impact investing. By addressing critical barriers, the NAB aims to catalyse growth in impact investing both among Dutch stakeholders and within African countries themselves.
Key Findings
The report draws on both qualitative analysis of research and interviews with stakeholders and identifies several key challenges faced by each group of stakeholders.
Challenges for Dutch stakeholders involve regulation, risk perception, lack of investment-ready deals, currency risk and mainstream investors’ mindset
Challenges for GSG Impact National Partners involve resource challenges and capacity-building needs
Market inefficiencies are common issues across all stakeholders
Key Solution Pathways:
For asset owners and asset managers:; adopt a long-term perspective, embrace data-driven decisions and include impact considerations in (geographic) asset allocation
For policymakers:; enable a conducive regulatory environment, incentivise impactful deployments, provide blended finance capital and foster public awareness
For emerging market fund managers:; tailored impact products, targeted solutions, collaborative impact, knowledge dissemination and partner with local experts
For entrepreneurs:; Impact narrative, transparency and governance and navigate the ecosystem
Looking Ahead
In response to these challenges, the NAB aims to implement activities that support Dutch stakeholders in investing effectively in emerging markets in its ecosystem building activities. The NAB will also directly empower GSG Impact National Partners in Africa to drive local impact investing growth. Through these efforts, the NAB can significantly contribute to mobilising capital for the Sustainable Development Goals addressing global challenges and fostering sustainable development in emerging markets
The NAB plans to host a webinar in November to address these findings and the path forward, stay tuned to our website for updates here.
Acknowledgments:
The NAB is grateful to the Editorial Board (Yvonne Bakkum, Jaap Reinking, Marnix Mulder and Laure Wessemius Chibrac) for their review and their invaluable contributions to the quality of the report as well as to the Ministry of Foreign Affairs and to its community members for making this Program possible.
For more information or to access the full report , please click below or contact us: contact@nabimpactinvesting.nl.
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