Institutional investors have a key role to play in helping to close the
sustainable financing gap, which is defined as the shortfall between the expected investment required to meet the UN’s Sustainable Development Goals, and existing investment currently allocated towards achieving those goals. In Africa, the sustainable financing gap is estimated to be approximately 7% of the continent’s gross domestic product (GDP).
As part of our commitment to developing robust, viable, growth-enabled businesses in markets across Africa, we at ETK wanted to explore how the sustainability agenda is affecting institutional investment in Africa.
In this article, we took a look at how the focus on sustainability is creating entirely new business models and new opportunities for existing businesses while considering the challenges these businesses face in accessing financing from institutional investors.
We also delved into how institutional investors and the sustainability agenda are creating a new set of obligations for all businesses – regardless of sector or geography – in terms of transparency
and reporting around non-financial ESG measures.
Our insightful thought piece on how sustainability is changing the way institutional investors engage with businesses in Africa can be downloaded here Sustainability and institutional investment by ETK Group