It’s estimated that $2.5 trillion a year is needed to achieve the United Nations Global Goals for Sustainable Development. While $37 trillion of capital is tied up in the private sector available for investment in development. The question is, how can this money be unlocked to deliver the Goals in challenging places – in countries like the Democratic Republic of Congo, Sierra Leone and Afghanistan.
Over the past few months, Business Fights Poverty, alongside partners including CDC, have been exploring this question as part of its Investing for Impact challenge. The work has culminated in a report published today.
The report looks at a number of successful collaborations between different types of organisations and identifies three ‘catalysts’ – common among them all – that help to attract investors and can lead to a successful investment that has both a financial and developmental impact. These include different types of organisations working together; creating innovative models to mitigate risk and attract institutional investors; and ensuring projects or companies manage investments properly to inspire confidence among investors.
The examples the report draws upon came from Business Fights Poverty’s Investing for Impact challenge, which involved a series of meetings, roundtable discussions, workshops and conferences. Examples of successful projects include CDC investments such as Virunga Energy, a hydropower plant in the Democratic Republic of Congo and a loan facility set up with Standard Chartered Bank to support businesses during the Ebola crisis.
The report is being launched at the United Nations General Assembly in New York. You can read it in full here.
Find out more
Click here to visit the Investing for Impact challenge page
Click here to listen to a podcast with CDC’s Andrew Palmer, which launched the challenge in June
CDC is the UK government-owned development finance institution. CDC’s mission is to support the building of businesses throughout Africa and South Asia, to create jobs and making a lasting difference to people’s lives in some of the world’s poorest places.
We provide investment capital in all its forms, including equity, debt, mezzanine and guarantees, and this capital is typically used to fund growth. This capital is provided directly and through fund managers that are aligned with our aims.
CDC uses its own balance sheet to invest and has net assets of £3.4bn.