For those who missed it, another nudge to check out our current thinking on the coffee value chain and profiling some of our direct (
Onyx Coffee
&
Thanksgiving Coffee Company
) and fund (
Root Capital
,
MCE Social Capital
,
Global Partnerships
,
Clarmondial AG
&
responsAbility Investments AG
). I'm reliably informed (Keith Polo!) that
Missio Invest
are also active in the supply chain!
From microfinance pioneer to Prime Minister (via
BBC News
): Muhammad Yunus pioneered the use of microfinance with
Grameen Bank
in the 1970s and 1980s in Bangladesh and was awarded the
Nobel Peace Prize
in 2006. More recently, his work with
Yunus Social Business
has sought to scale the concept of social enterprise beyond financial services. He's an incredibly inspiring man who I once had the pleasure to listen to in person at an event hosted by
ODI Global
in London. Despite coming under political attack in recent years as he began to try and influence Bangladesh's political system more broadly, he remains hugely popular with the country's youth and was recently appointed interim Prime Minister following the resignation of the unpopular Sheik Hasina.
UK Pension Funds x Impact (via
New Private Markets
): I've previously remarked on the importance of mobilising larger institutional capital pools for impact in the private markets, highlighting examples such as
CalPERS
committing $25bn to green climate investments. In the UK, 98 Local Government Pension Schemes control £350bn (~$445bn) of assets. The introduction of pooling into eight clusters in 2018 has enabled more efficiency in allocations, and in recent years has enabled a heightened focus on private markets. This has seen an increased focus on climate and place-based investing allocations, partially in response to a proposed government target for LGPS funds to invest up to 5% of their assets in projects which support local areas - the article provides lots of examples of significant allocations by different pools. A concrete recent example is a consortium of Welsh pension funds giving
Schroders Capital
a £400m allocation to positive impact projects in Wales, including local employment, affordable housing and healthcare.
Africa-led blended finance models mobilizing billions (via
ImpactAlpha
):
Aakif Merchant
of
Convergence Blended Finance
highlights three success stories of African DFIs and MDBs launching innovative new models for the continent. It's positive to see solutions emerging from
Development Bank of Rwanda (BRD) PLC
,
Trade and Development Bank Group - TDB Group
and
African Development Bank Group
to increase the flow of capital to the continent.
IMPACT MEASUREMENT & MANAGEMENT
Are fund managers ready for impact accountability? (via
ImpactAlpha
) As the field of impact measurement develops, there are growing calls for enhanced impact accountability for managers. Innovations in measuring impact (e.g.
60 Decibels
), impact verification (e.g.
BlueMark
) and impact norms (e.g.
Impact Frontiers
, Operating Principles for Impact Management,
2X Global
) make holding enterprises, financial institutions and fund managers genuinely accountable for impact as well as financial performance a growing possibility. This recent Q&A with
Tristan Hackett
of
BlueMark
provided some interesting colour on the issue.
- Examining the Fragility of the AgTech Ecosystem Behind the Headline Numbers (via
ISF Advisors
) - recent setbacks for many AgTech models in emerging and frontier economies underscore the challenges that remain in a rapidly growing ecosystem. Comparing AgTech to other ecosystems serving low and middle-income populations (such as microfinance and PAYGO solar), this report highlights the large differentiation in maturity of ecosystems in the Global South. Brazil and India are clear front-runners (excluding China), while Sub-Saharan ecosystems remain relatively immature even in Kenya and Nigeria.
- How Do We Reach 80 Million Women and Increase Their Incomes by 30%? (via
FinDev Gateway
) -
Greta Bull
of
Gates Foundation
shares their latest thinking on building an inclusive financial ecosystem benefiting vulnerable women globally. Shifting the discussion from microfinance to a more holistic approach focused on a range of potential sources of capital is welcome, encompassing informal credit, fintech, cash transfers and savings. Similarly, reframing the narrative beyond "assess" to focus on "affordability" is needed in a world with a proliferation of expensive consumer fintech products. The call from a leading donor for donors, currently spending $10bn a year on financial inclusion in Africa, to get more for their money is refreshingly honest and self-reflective.
- Empowering Small Giants: Inclusive Embedded Finance for Micro-retailers (via
CGAP
) - useful summary of business models unlocking the potential of FMCG and other micro-retailers in emerging markets. The theme of digitisation enabling embedded finance is one we see through our fund investments in managers such as
Quona Capital
,
Accion Venture Lab
and
Lendable
.
- UN Report Records First Drop in Energy Access in Decade (via
International Institute for Sustainable Development
) - a somewhat sobering note to end on, with The Energy Progress Report 2024 finding an increase in 10m people without electricity globally from 2021 to 685m in 2022. This is driven by population growth exceeding new connections in some regions (particularly Sub-Saharan Africa), the global energy crisis, inflation and growing debt distress in many low-income countries.
Entrepreneur | Impact Investor | Venture Builder
6 个月Good to see Indonesia is at a turning point
Great to highlight the Wales Pension Partnership (WPP) Partneriaeth Pensiwn Cymru impact initiative. Some fantastic ambition and a really innovative solution.
Co-Founder Balloon Ventures | Validate Startup | Building the world's first financial institution dedicated to Good Jobs
7 个月This pivot of Gates foundation back to microfinance is really interesting. Totally agree that cost of capital and therefore borrowing is #1?issue for entrepreneurs. But I also wonder about this strategy of focusing on micro because so much of the data shows that doesn't sustainably move those entrepreneurs out of poverty and what most really want is a good job. Feels like investing in the sticking plaster rather than fixing the wound.?
IT Manager | Dedicated to Bringing People Together | Building Lasting Relationships with Clients and Candidates
7 个月This roundup highlights the critical developments in impact investing—truly an evolving landscape! ??? Harry Davies
CEO Ethex and Director Energise Africa -Make money do good
7 个月Ray Coyle