The
Lead Coordinator of the GIMPA Centre for Impact Investing (GCII), Mr. Godfred Amewu,
is urging those in the private sector to take hold of the enormous benefits and
funding opportunities offered by impact investing while creating positive
social impact beyond the financial returns.
He
said entrepreneurs, businesses and companies stand the chance to source attractive
funding in addition to getting global recognition for their contributions,
investment breaks, and government support in the form of tax reliefs among
others.
He
said the time has come for private investors, entrepreneurs to consider
adopting innovative and strategic businesses through which they could positively
influence society by way of providing effective and lasting solutions to some
of the social and environmental challenges of their operational communities.
Mr.
Amewu said these in an interview with the Business and Financial Times at a day’s
stakeholder engagement workshop, in Kumasi, organized by GCII to discuss impact
investing and how to get it well promoted in the country.
The
GCII, a non-profit organization, was launched on August 28, 2013, as a joint
collaboration between GIMPA and the Venture Capital Trust Fund, and is mandated
to operate credibly and independently to promote the development of impact
investing in Ghana.
It
seeks to achieve this objective through public education and continuous
research into major social and environmental challenges, policy advocacy and
impact measurement of various initiatives to address social and environmental
challenges.
Impact
investing is generally defined as investments intended to create positive
social impact beyond financial return. Unlike the traditional forms of
investments, impact investments accommodates a strategy for solving social and
environmental challenges as an integral part of any business model, placing it
on par with the desire to achieve a financial return.
The
concept of impact investing challenges private investors and entrepreneurs to
develop innovative businesses to deliver effective and lasting solutions to the
social and environmental challenges while making profit at the same time.
In
recent times, impact investing has received significant attention as a
promising asset class for investors looking to deliver double-bottom line
outcomes from their investment activities. “Impact
investment market offers the potential over the next 10 years for investments
of $400 billion to $1 trillion and profit of $183 billion to $667 billion,”
according to a research conducted by The Rockefeller Foundation and JP Morgan.
This
potential is a key driving force behind the GCII’s decision, with support from
its funders, to promote impact investing in Ghana as a means to complement
government efforts to address major social challenges.
GCII
is managed by highly proficient and skilled personnel committed to developing
impact investment within the country. As a completely new concept in the Ghanaian
business and financial landscape, impact investing is to be championed by GCII
in the country and its immediate environs.
In
December 2013, GCII received a grant of $100,000. 00 from the Africa Impact
Economy Innovations Fund (IEIF) which was launched in April 2013 at the Africa
Impact Investing Forum supported by the Rockefeller Foundation, and the Tony
Elumelu Foundation.
The
Centre also receives financial support from the mother institution, GIMPA and
the Venture Capital Trust Fund.
GCII
is also conducting baseline research on impact investing in Ghana which is
expected to provide an insight into the impact investing terrain, identify
challenges and opportunities in all sectors of the economy.