Report covers trends, challenges, and opportunities in 11 countries in the region
July 29, 2015 — The Global Impact Investing Network (GIIN), in partnership with Open Capital Advisors, today published the full release of The Landscape for Impact Investing in East Africa, a “state of the market” analysis of the impact investing industry in the region. The most comprehensive study of impact investment activity in East Africa to date, the full report includes detailed chapters for five countries—Kenya, Uganda, Tanzania, Ethiopia, and Rwanda—plus chapters on six additional countries in the region.
The report analyzes an active impact investing market across East Africa. Development finance institutions (DFIs) are a significant player in the market, having deployed nearly $8 billion in impact capital to date. However, many other types of investors—including VC/PE funds, foundations, family offices, commercial banks, and angel investor networks—are increasingly active, with these non-DFI impact investors having deployed over $1.4 billion to date in the region through more than 550 deals.
The countries examined in the report exhibit a range of trends and opportunities for impact investors. Across the region, investors highlight opportunities in agriculture, renewable energy, and water and sanitation. Kenya is the clear hub for impact investing in the region, accounting for more than half of impact capital deployed and by far the largest number of local offices for impact investors and other ecosystem players like incubators and advisors. However, countries such as Uganda and Ethiopia are increasingly active and promising for investors.
“East Africa is an impact investing market that is still growing and evolving, but we are seeing a lot of momentum,” said Amit Bouri, CEO of the GIIN. “We hope this report will serve as a useful resource to help current and potential investors navigate this dynamic market.”
The landscape study is built on thorough analysis of relevant literature, large volumes of transaction data, and extensive interviews with key industry stakeholders. Detailed country chapters include information on the supply of capital by investor type, investment opportunities by sector, as well as regulatory considerations and hurdles for impact investors and investees.
“We are excited to share research that will help investors better understand the region,” said Annie Roberts, a Partner at Open Capital Advisors. “Over the past five years since we founded Open Capital, we’ve seen a dramatic increase in interest in the region, and hope this new research will spur even more local activity. Some investors fear a lack of deal flow, but as this report shows, East Africa is a vibrant market with a large number of impact investments happening every year.”
The study was produced with support from UK aid from the UK Government through the Department for International Development’s Impact Programme. It follows the first such study produced by the GIIN, The Landscape for Impact Investing in South Asia. Future GIIN impact investing landscaping reports are planned for the regions of West and Southern Africa, which are poised for the greatest increase in investor interest, according to the most recent GIIN and J.P. Morgan impact investor survey, Eyes on the Horizon.
