Impact Economies Traction & Trends: Insights from 34 GSG National Partners
A comprehensive deep dive into the evolving global impact economy landscape, this GSG Impact report analyses trends across 34 GSG National Partners and their diverse national impact ecosystems. Discover key insights on government actions, the role of market-building groups, impact capital intermediation and supply, demand for impact capital, and contributions to the United Nations Sustainable Development Goals (SDGs).
The global impact landscape is evolving at an unprecedented pace, driven by the urgent need to address climate change, social inequality, and sustainable economic development. As capital markets increasingly integrate environmental, social, and governance (ESG) factors, impact investing has transitioned from a niche practice to a mainstream investment strategy. Governments, financial institutions, and private investors are aligning their capital with measurable social and environmental outcomes, fostering a more inclusive impact economy.
Impact investing ecosystems around the world are evolving in diverse ways, shaped by unique local contexts, priorities, and capacities. Some are advancing policies and scaling capital deployment, while others are building foundational infrastructure and experimenting with innovative approaches. Country-level developments can offer practical lessons and models that are transferable across borders. By identifying what works in one ecosystem, stakeholders in another can adapt and apply strategies to accelerate the adoption of impact finance and unlock new opportunities.
To promote shared learning, this report provides concise descriptive profiles of 34 ecosystems, where GSG National Partners are playing a leading role in driving the transition towards an impact economy. Building on our first country-by-country overview published in 2019, Transition of Impact Economies, this edition tracks how these 34 ecosystems are evolving. Each profile presents a snapshot of the country’s impact investment ecosystem, including market size, self-assessed market maturity, and key initiatives undertaken by major stakeholders. This report is intended to inform investors, policymakers, and ecosystem builders by providing actionable insights to accelerate capital deployment and drive systemic change. It highlights how impact investing is evolving across diverse country contexts - not only in developed markets, but also in emerging and developing economies, where local and international actors are co-creating ecosystems.
Our analysis across the 34 National Partner ecosystems reveals trends and insights emerging across ecosystems. These focus on critical stakeholders, mechanisms, and vehicles shaping the global impact investment landscape:
Many governments are increasingly embedding impact investing into national development plans and policy agendas, signaling a shift from isolated initiatives to long-term strategic priorities.
These wholesalers typically provide flexible, patient capital to intermediaries (e.g., fund managers and social lenders) and can de-risk investments for co-investors.
Outcome-based financing (OBF) mechanisms – notably Social Impact Bonds (SIBs) and Outcomes Funds - are gaining traction as governments seek to tie funding to measurable results
Green bonds, other sustainability-themed bonds (e.g., blue bonds), and sustainability-linked bonds have become mainstream instruments to crowd-in capital into climate and social investments.
Ecosystems are aligning with international sustainability disclosure standards, notably the IFRS Sustainability Disclosure Standards (S1 and S2) released by the ISSB. This push for transparency aims to improve comparability of ESG and impact data, build credibility in the market, and prevent impact washing.
Pension funds and other institutional capitals are powerful drivers of impact investment in each ecosystem.
Development finance institutions (DFIs) and international development agencies are one of the main impact capital suppliers in both emerging and domestic markets.
Across ecosystems, there is significant emphasis on accelerators, incubators, technical assistance, and other capacity-building programmes to grow the pipeline of viable impact projects.
This report includes detailed profiles for the following 34 countries, where GSG National Partners are actively building impact economies:
Ghana
Kenya
Nigeria
South Africa
Zambia
Australia
Bangladesh
India
Japan
Malaysia
New Zealand
South Korea
Sri Lanka
Thailand
Belgium
France
Germany
Greece
Israel
Italy
Netherlands
Norway
Portugal
Spain
Türkiye
United Kingdom
Brazil
Central America
Chile
Colombia
Mexico
Peru
Canada
United States
Raffaella De Felice
Senior Manager - GSG Impact
Kyungmin Park
Former Senior Officer - GSG Impact
Publication Enquiries
realimpact@gsgii.org
A guide for Development Finance institutions (DFIs) and all practitioners wanting to increase the flow of capital to SMEs in emerging markets and developing economies (EMDEs).
The GSG Impact Partnership reached a pivotal moment, now spanning 46 countries and covering 65% of the world’s population. Our work in 2024 was centred around (i) advancing impact economies by expanding our community and nurturing ecosystem growth (ii) mobilising private capital at scale, especially in emerging markets, and (iii) enabling greater inclusivity in global sustainability disclosure standards.
Governance strategies for GSG National Partners to strengthen impact ecosystems with insights on leadership, legal structures, and actionable recommendations.
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