Take advantage of opportunities offered by societal challenges

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.