Investing for Impact

The rapid growth of the digital economy is the defining narrative of the last fifty years. Spurred by an era of remarkable innovation, digital technology has transformed societies and now contributes an estimated 16 per cent to the global economy annually. However much of the world remains poorly served, with an estimated 3.5 billion people still with no access to the internet. Most live in low to middle income countries where limited digital capacity in everything from skills and infrastructure, to governance and regulation, hinders economic development. But we know that simply connecting 10 per cent more of a country’s population to the internet leads to an estimated 1.4 per cent growth in GDP, the impact is transformational. Which is why accelerating investment in the digital economy must be a development priority. Join us for a conversation with leading emerging markets VC investor, Nikunj Jinsi where we will discuss how digital transformation can drive sustainable and inclusive growth. We will also explore the role impact investors can play in accelerating the adoption of digital technology in developing countries. Nikunj is joined by our Managing Director, Abhinav Sinha who heads up our Technology and Telecoms team, and the discussion is chaired by Colin Buckley. Additional links:  Watch a recording of this event: https://www.bii.co.uk/en/news-insight/events/articles/accelerating-digital-transformation-for-sustainable-economic-development/

Within the field of impact investing, the growth of gender lens investment has been one the success stories of the last decade. And increasing evidence shows that investment policies that focus on gender equality have a transformative impact, especially in developing economies. We know that gender lens investing results in women from marginalised communities having increased access to finance and improvements to their working conditions. The strategy also encourages the growth of female entrepreneurship and leadership, as well as an increase in the gender diversity of boards. All of which results in better returns for investors. Join us for a conversation hosted for International Women’s Day, with two leaders at the forefront of inclusive investing: Roshaneh Zafar, the visionary founder of Kashf Foundation in Pakistan, which provides a range of vital financial services for women and Hany Assaad of Avanz Capital, a leading emerging markets investor and gender lens investing champion. This conversation explores the growth of gender finance and its transformative impact on women across the spectrum of society. We also discuss how we can elevate gender lens investing to a mainstream strategy; the role of men in supporting gender lens investment; and the learnings that can be applied in the design of future inclusive investment policies which target other marginalised sections of society. The conversation is chaired by Lynsay Taffe, Director of Communications at British International Investment. Additional links: Watch the event in full: https://youtu.be/RT1sceL9Qt4 Find out more about why we've become British International Investment: https://www.bii.co.uk/en/news-insight/insight/articles/the-beginning-of-an-exciting-new-chapter/

Global water use has doubled in the last 40 years. This increase in demand for water, alongside the effects of climate change, mean businesses need to take action to manage their water use. With water risks growing, it is estimated that the costs to businesses of doing nothing are almost five times higher than actively addressing the issue. Last year, we partnered with WWF to provide technical assistance to further enhance their Water Risk Filter - a free online tool that provides assistance to organisations in assessing and responding to water risks. In this ESG Podcast episode, CDC's Zinhle Tshabalala and Ariane Laporte-Bisquit from WWF discuss the Water Risk Filter, how you can use it, and why businesses and investors should be turning their attention to water risks if they're not doing so already. Extra links: WWF Water Risk Filter CDC and WWF announce partnership on the Water Risk Filter Subscribe to our newsletter

Impact led social investment in Africa has experienced steady growth over the last decade, spurred by the need for a sustainable private sector which supports the economic and social demands of a growing young and rapidly urbanising population. From building vital infrastructure, to creating future-proof employment, and supporting the growth of new industries, impact led investors can both address the continent’s social and economic challenges; and meet market and consumer needs. Join us for a conversation with Frank Aswani, Chief Executive of the African Venture Philanthropy Alliance – a network of investors dedicated to unlocking new capital for social impact across Africa. In this discussion we explore the evolution of social impact investment in Africa; examine how the UN Sustainable Development Goals funding gap has exposed systemic weaknesses; and reflect on the role of impact led investment in addressing the challenges and shaping the future of the continent. The interview is hosted by CDC's Colin Buckley. Subscribe to our newsletter here.

When the scale of the pandemic became known in March 2020, financial institutions needed to respond quickly to support the individuals and businesses that use their services. This was especially true for Advans Group, a microfinance institution that lends to entrepreneurs and small businesses in developing countries around the world. As many of Advans' clients faced national lockdowns, the nature of their work meant they couldn't continue to operate. In this podcast, we explore how the Advans team responded and what we can learn from it. We look at how the response was coordinated at the company's head office, through the way it was implemented at a country level in Pakistan and the impact it had on its clients. Additional links: Details on the technical assistance we provided to Advans during the pandemic: https://www.cdcgroup.com/en/news-insight/news/cdc-and-fmo-grant-advans-strong-support-to-accelerate-the-recovery-of-small-entrepreneurs/  How our technical assistance facility, CDC Plus, responded to the pandemic: https://www.cdcgroup.com/en/news-insight/insight/articles/whats-the-impact-of-investing-crisis/ Subscribe to our newsletter: https://cdcgroup.us13.list-manage.com/subscribe?u=018b2da3576717f35b05a766c&id=e6d7d8d8fb cdcgroup.com

In 2017, we launched a five-year strategy, which aimed to tackle the key development challenges facing countries in Africa and South Asia. A lot has changed since then - the pandemic has pushed hundreds of millions into extreme poverty, climate change has become the climate emergency, and there is greater understanding of the systemic injustices that hold people back. This week, we launched our 2022-2026 strategy, which aims to address these emerging challenges and opportunities. It sets out three clear strategic objectives - to invest in productive, sustainable and inclusive development. And in this podcast episode, we take a deeper dive into what all this means. We explore our impact objectives in more detail, discuss the lessons learnt since 2017 and understand how we will implement the strategy in the countries where we invest. Additional links: Read our 2022-2026 strategy: https://www.cdcgroup.com/en/our-2022-2026-strategy Read our Policy on Responsible Investing: https://assets.cdcgroup.com/wp-content/uploads/2021/12/14074359/Policy-on-Responsible-Investing.pdf Watch our strategy launch event: https://www.youtube.com/watch?v=wazrqK2CEj8

Women are more vulnerable to the effects of climate change than men and, at the same time, can be critical agents of adaptation and resilience responses.  In this podcast episode, we look at the reasons why women are disproportionately affected by climate change, and how investors can benefit from considering both gender and climate factors in their work.  We hear from:  Marijn Wiersma, Gender Lead, CDC Group  Tejaswini Raval-Kamat, Vice President, ESG-Impact, EverSource Capital  Anita Bhatia, Assistant-Secretary-General and Deputy Executive Director, UN Women We also discuss the Gender Smart Climate Finance Guide, a new free online toolkit from the 2X Collaborative. the Guide provides practical resources for investors applying a gender lens to climate finance investments. It is powered by CDC Group, the European Investment Bank and the European Bank for Reconstruction and Development. Extra links: Gender-Smart Climate Finance Guide: https://www.2xcollaborative.org/toolkit Watch the recording from the launch of the Guide at COP26: https://www.youtube.com/watch?v=TAswIZ1Nvgk

It is now beyond debate that emerging economies will shoulder the burden of the climate crisis. It is estimated that out of the $90 trillion needed for the infrastructure to meet the 2030 emission goals, two thirds should go to emerging economies. And in the recent Global Climate Risk Index, eight out of the ten countries most affected by the quantified impacts of extreme weather events are low- to lower-middle income and half of them are categorised as Least Developed Countries. COP26 is critical if we are to have a chance of limiting warming to 1.5 degrees. The recent IPCC report made it clear it is still possible to meet the target but only if unprecedented action is taken now. If the conference is to be effective, emerging markets voices and their needs must lead the agenda. Join us for a conversation with Yvonne Aki Sawyerr OBE, the Mayor of Freetown, Sierra Leone and passionate climate champion. Since her election in 2018, Mayor Aki-Sawyerr has put the climate agenda at the heart of her administration, focussing on innovative solutions and local action to address the immediate challenges cities in emerging economies like Freetown face. Your host is CDC’s Director of Communications Lynsay Taffe. Additional links: Subscribe to our Insight newsletter here  For more perspectives from emerging economies on climate change, read our report here

In this episode, we explore the impact climate change is having on businesses in emerging economies. We look at how it's affecting firms today, how it might affect their future plans and what international investors can do to support a just transition to net zero emissions and resilient economies.  We hear from founders, CEOs and senior managers working at companies operating in Africa and South Asia that CDC invests in, including:  Kihara Maina, CEO, I&M Bank Kenya Radha Basu, CEO, iMerit Naomi Kioi, Global Marketing and Digital Business Manager, Greenlight Planet Prerak Goel, Co-Founder, Roserve If you're interested in delving deeper into the topics we cover in this episode, take a look at the CDC Emerging Economies Climate Report 2021.  

A thriving private sector is the foundation of a healthy economy – creating employment, delivering vital goods and services, and providing valuable tax income. Which is why investment in emerging markets is critical to advancing development. However, these markets are complex and need different types of financial interventions to enable economic growth. So the question arises, how do we ensure the growth from private sector investment is sustainable, inclusive, and equitable? Vineet Rai, chair of Aavishkaar Group, an emerging market financial group, believes impact investment is the key. A pioneer of the industry, Vineet’s realisation that investors need to offer a suite of products to truly meet the needs of burgeoning private sector, has transformed the way many think about impact investment today. Join us for a conversation with the industry leader, in which he will share the story behind the growth of Aaviskaar over the last two decades, to become one of today’s leading impact investors. As well as reflecting on the current impact investing landscape, we will also discuss future industry trends and ask what more can be done to support the growth of impact led investment in emerging markets. Vineet is joined by CDC Group's Director, Value Creation Strategies Jen Braswell, and General Counsel and Head of External Relations, Colin Buckley.  Additional links: Subscribe to our Insight newsletter here