Mobilising private capital for public good

A fairer, more equitable and stable world requires greater capital flows to emerging markets. They are the most vulnerable to climate change and where most people are affected by extreme poverty. They are also where some of the greatest opportunities exist.

Around half of all impact funds already invest in emerging markets, but much more needs to be done to mobilise private sector capital into solutions with the pace and scale required to achieve the SDGs by 2030.

The GSG Impact Partnership is designing and implementing SDG aligned investment vehicles. These are designed to address structural challenges to SME financing in emerging markets.

The $75m Ci-Gaba Fund of Funds, sponsored by GSG National Partner, Impact Investing Ghana, is designed to support the development of the West African venture capital ecosystem. 

The Nigeria Wholesale Impact Fund, designed to scale to $1bn, and sponsored by the GSG National Partner in Nigeria, will ultimately finance social enterprises and MSMEs in sectors including agriculture, education, health and energy. 

A $150m credit guarantee scheme in Zambia, sponsored by GSG National Partner Impact Investment Zambia, aims to enable financial institutions to extend credit to smaller businesses. 

Governments have a key role to play. Acting as a direct market participant, regulator or market builder, the public sector can support each of the key pillars in the economy to move faster towards creating positive impact.

They can incentivise greater pools of capital to flow towards tackling key societal and environmental issues, from the delivery of better health and education outcomes, to quality job creation or building urban environments with quality habitat for all.