Impact Investing in Africa (eBook)

A Guide to Sustainability for Investors, Institutions, and Entrepreneurs

Edward Mungai (Autor)

eBook Download: PDF

2018 | 1st ed. 2018
XVII, 159 Seiten
Springer International Publishing (Verlag)
978-3-030-00428-6 (ISBN)

Infos

As investment in new ventures across the African continent grows, and enterprises multiply in a wide variety of sectors, the next wave of challenges and opportunities has become apparent to those with the experience and vision to understand them. In this book for investors, institutions, entrepreneurs, and everyone interested in the economic future of Africa, noted Kenyan executive Edward Mungai will analyze recent successes and failures in business ventures across the African continent and identify the most important opportunities for impact investment impacting the future of Africa available today and in the near future.

Edward Mungai is renowned across Europe and Africa for his deep experience in and knowledge of African entrepreneurship and investment. Mungai is CEO of the Kenya Climate Innovation Center, the green microbusiness incubator affiliated with the World Bank. Previously, Mungai led investments in Africa and elsewhere for the Danish International Investment Funds. Mungai speaks frequently to audiences in Africa, Europe, and the United States on sustainable African development and impact investment.

Inhalt

Preface 6
Acknowledgements 10
Contents 11
List of Figures 12
List of Tables 13
1 Introduction 14
What Is Impact Investing, and Why Is It Now Showing Growth? 15
Who Are the Current Impact Investors and What Have They Put in So Far? 17
Investment, Not Aid 20
What Is the Best Possible Solution for Africa? 21
Conclusion 22
2 Doing Business in Africa: What to Consider 24
Budget for Time and Cost Overruns 29
Value Chain Considerations 30
Pay Attention to Legal Issues 32
Maintain a Strong Work Ethic 33
Be Flexible, Except with Core Values 33
Paying Taxes 34
Closing Thoughts 35
3 How Does Impact Investing Scale Down to Ordinary People? 37
Large-Scale Impact Investments 41
Ending Poverty Through Impact Investments 46
What Is the Best Possible Solution for Africa? 51
In Conclusion 53
4 Landscape of Impacting Investing in Africa 56
Who Is Investing in the African Impact Investing Space? 59
Foundations 59
Pension Funds and Insurers 60
Banks 61
Sovereign Wealth Funds 62
Multinationals 62
Diaspora 63
Retail Investors 64
Closing Thoughts 64
5 Emerging Trends in Impact Investing in Africa 66
Cross-Border Investments Are Becoming More Popular 67
DFIs and NGOs Are Still the Dominant Investors 68
Support Ecosystems Are Maturing 69
Impact Investing Is Becoming More Evidence Based 70
SDGs as a Platform for Impact Investment 71
Compensation Based on Social Goals 74
Certification of Impact 75
B-Corp Movement and Shift to Impactful CSR 76
The Rise of the Nonprofit Social Enterprise 78
Impact Investing Is Becoming More Mainstream 79
Market Data Will Be Key Going Forward 80
Conclusion 82
6 Structuring a Fund 84
Fund Structure 87
Board of Advisers (Company Board) 90
Investment Committee 92
The Fund Management Team 93
The Investment Approach 96
Deal Origination 96
General Pipeline Considerations 97
Investment Appraisal 100
Investment Criteria 101
Commercial Parameters 101
Impact Parameters 102
Management Parameters 103
Case Study of Investment Criteria 104
The Investment Approval Process 105
Financing Instruments 106
Other Considerations in the Investment Criteria Include 109
Diversification 109
Valuations 109
Active Post-Investment Management 109
Technical Assistance Facility and Its Benefits in Impact Investing 110
Realisation of Value 113
Conclusion 114
7 Measuring Impact for Continued Growth 116
Why Measure Impact? 116
Framework for Measuring Impact Investments Today 119
Principles to Consider Before Developing Measurement Strategy 120
Case Study: Kenya Climate Innovation Centre 121
Logical Framework 124
Results Framework 124
Data Collection and Analysis 125
Uses of the Information Collected 125
In Conclusion 126
8 De-risking Your Investments 128
Investment De-risking 132
Selection of Entrepreneur and Market Research 132
Investment Performance Reporting 134
Founder’s Personal Guarantees 135
Contract Terms 135
High-Touch Monitoring 136
Enterprise Budgets 137
Performance Targets and Reviewing Key Performance Indicators (Focus on Sales, Revenues, Receivables/Payables) 137
Funds Use Restrictions 139
Funding Instrument 140
Summary 142
9 Challenges for Impact Businesses in Africa 144
Challenges Facing Investee Companies 144
Access to Finance 145
Access to Information 149
Access to Facilities 150
Enabling Environment 151
Challenges Facing Investors 153
Deal Flow Challenges 154
Difficulties in Measuring Impact, and Lack of Supporting Framework 155
Limited Innovative Fund and Deal Structures 156
Challenges in Exiting Investments 157
Challenges for the Sector Ecosystem 158
Unclear and Inconsistent Enabling Environment 158
Lack of Synergy in the Investing Ecosystems 160
Lack of Research and Data on the Impact Sector 161
Index 163

Produkt-Details

• Erscheint lt. Verlag: 19.11.2018
• Zusatzinfo: XVII, 159 p. 8 illus., 7 illus. in color.
• Verlagsort: Cham
• Sprache: englisch
• Themenwelt: Sachbuch/Ratgeber ► Beruf / Finanzen / Recht / Wirtschaft ► Geld / Bank / Börse
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre
• Schlagworte: Blended Finance • Development Finance • Emerging Markets • Emerging trends • Impact Investing • impact investor • Investments and Securities • sustainable development • sustainable development in Africa • Sustainable Finance
• ISBN-10: 3-030-00428-7 / 3030004287
• ISBN-13: 978-3-030-00428-6 / 9783030004286