Action Plan

The strategy of the Africa Impact Investment Action Plan that aims to increase levels of human development through the creation of an impact investment network.

The strategy to develop impact investment in Africa, which is aimed at increasing human and social development levels on the continent, was formulated using accepted methods and reports that included:

The Strategic Action Plan is a guide for the key areas of intervention needed to unlock the full potential of impact investment in Africa. It also identifies the potential roles of key players and stakeholders, and outlines what they can contribute towards each of the recommended actions and steps.

1) Promote networking around impact investment in Africa and facilitate cross collaboration so as to complement ongoing efforts by stakeholders and minimize duplication

Key Sector Challenges to be addressed by the Outcome

Existing impact investment in Africa stakeholders are not adequately coordinated, resulting in duplication of efforts, limited awareness of what other stakeholders are doing and an African impact investment sector that is less effective than it could be.

Activities

  1. Launch [email protected]
  2. Update and finalise [email protected] Strategy & Business Plan
  3. Conduct mapping of all key stakeholders in the impact investment sector ecosystem, including their activities
  4. Update and finalise Africa Impact Investment Action Plan

2) Advocate for African leadership in impact investment, as well as promote impact investing to strategic stakeholders on the continent

Key Sector Challenges to be addressed by the Outcome

  • Limited understanding of impact investment as a concept by African leadership and key stakeholders
  • Limited understanding by African leadership and key stakeholders of the role that impact investment can contribute towards development goals
  • Limited involvement in impact investment by African high net-worth individuals

Activities

  • Create a network of African impact investors and policy makers
  • Facilitate (at least) 2 annual forums among key impact investment stakeholders

3) Develop a dynamic advocacy and awareness raising program on Impact Investment in Africa

Key Sector Challenges to be addressed by the Outcome

  • A general lack of awareness and understanding of impact investment as a concept
  • Inadequate impact investment practice by Africa’s policymakers, mainstream investors and the general public
  • Limited understanding of the role impact investment can play toward the attainment of the SDGs

Activities

  • Compile campaign “hit targets”, design and layout advocacy and awareness raising plan with an outreach strategy (including e.g. to work with business schools to provide impact investment courses/programs)
  • Build regional networks comprised of credible sector stakeholders and roll out an advocacy campaign on impact investment as a contributor to SDG attainment

4) Support the development of a strong pipeline of viable impact investees that are able to meet financial, social and/or environmental requirements

Key Sector Challenges to be addressed by the Outcome

  • Difficulty sourcing viable investments that meet both financial and social/environmental objectives
  • Poor visibility and inadequate recognition of social enterprise status
  • Poor linkages between social enterprises, investors and innovation networks

Activities

  • Conduct a preliminary identification, aggregation and compilation of social enterprises and business development service providers

5) Strengthen enabling policy and regulatory environment in which impact investment can thrive

Key Sector Challenges to be addressed by the Outcome

  • Inadequate policy and regulatory environment

Activities

  • Conduct a preliminary identification, aggregation and compilation of relevant policy actors, including ongoing activities relevant for impact investment

6) Impact investor capacity in Africa strengthened to increase impact investment practice

Key Sector Challenges to be addressed by the Outcome

  • Lack of capital supply across the risk/return spectrum
  • Difficulty exiting investments

Activities

  • Preliminary identification, aggregation & compilation of impact investors
  • Preliminary compilation of the work of key DFIs and other large investors and the leverage thereof on such work
  • Development of a partnership framework with the relevant actors

7) Support the creation and strengthening of appropriate infrastructure and mechanisms to facilitate impact investment deals

Key Sector Challenges to be addressed by the Outcome

  • Limited availability of innovative fund and deal structures

Activities

  • Conduct feasibility study to explore options for the creation of an Impact Investment in Africa fund/fund of funds
  • Conduct a preliminary compilation of innovative finance models, instruments, initiatives and case studies

8) Build consensus on and broad-based adoption of impact measurement standards and metrics to demonstrate social and environmental return

Key Sector Challenges to be addressed by the Outcome

  • Poor and inconsistent impact measurement practice

Activities

  • Conduct preliminary identification and documentation of main impact investment sector actors and elaboration of tools, standards and best practices.