The socio-economic role of Impact Investments in South Africa

Abstract

This research aims to investigate the role played by socio-economic factors in inducing Impact Investments in South Africa. The triple threat of poverty, inequality and unemployment remains a challenge in a low growth environment. To address all these challenges, major investments are required that will have a high impact and deliver bottom line results. Impact investing is still a nascent asset class in South Africa. The evolution of alternative asset classes and private markets in funding high impact investments is gaining momentum worldwide. South Africa’s low growth environment due to lack of new investments into the economy is not abating. The lack of packaged projects that are ready for funding presents an opportunity for the investment community. The global movement supporting sustainable finance (ESG) and social impact outcomes is becoming mainstream.