The Landscape for Impact Investing in East Africa

The Landscape for Impact Investing in East Africa

Impact investing activity in East Africa has increased to more than $9.3 billion, with more than half of the total supporting interventions in Kenya, a report from the finds. According to the report, (HTML), development finance institutions account for nearly $8 billion, or 85 percent, of the impact capital that has been disbursed, even as venture capital and private equity funds, foundations, family offices, commercial banks, and angel investor networks become increasingly active. The report goes on to highlight sectors that present opportunities for impact investors — agriculture, aquaculture, renewable energy, and tourism, among them — as well as challenges, including insufficient investment-ready opportunities, a shortage of human capital, a disconnect between on-the-ground entrepreneurs and foreign-based investment committees, and limited local currency financing. Impact investors could help support the growing field, the report suggests, by leveraging technical assistance facilities to build the pre-investment pipeline; developing sector expertise; looking for investment opportunities outside the region's capital cities; and boosting decision making at the local level.