Impact Investment
Early stage small and medium enterprises in developing countries that want to expand their business, improve processes or modernise technology struggle to access affordable finance. The “missing middle” entrepreneurs in Africa, Asia, or Latin America fall squarely between microfinance and conventional commercial financing. Next to the potential to bring with them economic development, they can have a positive social impact on the community in which they operate. Impact investors target such companies focusing not only on financial, but also social return on investment.
As a development organisation, SNV aims to reinforce the original objective of using impact investing to reduce poverty through sustainable private sector growth and innovative market-based solutions.
SNV’s Impact Investment Advisory Service (IIAS) practice targets the “missing middle” by assisting partner funds in raising investment capital and targeted technical assistance funding, and providing pre-, post- and turnaround advisory services to clients and investment pools.
Specifically:
We develop value-driven partnerships with impact investment fund managers with an interest in investing directly in indigenous enterprises and smallholder groups.
We identify potentially eligible investment opportunities and “graduate” them through capability development for investments.
IIAS follows the triple bottom line principles and facilitates investments in socially, environmentally, and financially responsible organisations.
In the past year alone, SNV has facilitated over US$10 million in direct social and impact investments and access-to-finance for 15 indigenous agribusinesses in Eastern and Southern Africa - and we’re just getting started!