The revised Sustainable Development Goals (SDGs) funding gap from private investments now stands at a staggering USD 4.2 trillion annually. Impact investing, where investments are made with an intentionality towards the SDGs, has been estimated to have crossed USD 1 trillion in global assets under management, growing at up to 25%. However, this growth has been significantly skewed toward sectors such as financial services, agriculture, and clean energy, together accounting for 55% of asset allocation. To accelerate bridging the SDG financing gap, impact investors need to recreate these success stories in the currently underinvested sectors such as WASH, healthcare, affordable housing. Further, the growth in private investments is also skewed toward more developed emerging markets. Despite the 70% increase in foreign investments in SDG-related sectors in developing countries in 2021, a strong rebound from the early pandemic lows, the share of 46 Least Developed Countries (LDCs) in these investments dropped from the already modest 19% in 2020 to 15% in 2021.
In this session, we bring together investment professionals from the development sector to discuss the investment opportunities in underinvested sectors and geographies and the initiatives and financial tools to mobilize more private capital in these areas.
In the next session, we will build on this topic and bring together risk management professionals from the development sector to discuss the challenges of investing in underinvested sectors, especially in the context of an inflationary post-pandemic world, and potential solutions.
MODERATOR:
- Arun Asok, Strategic Lead, Private Capital and Impact Investing, Abt Global
PANELISTS:
- Andreas Eichin, Director of Structured Credit, Kiva Capital
- Pranay Samson, Director, Innovative Finance, Plan International
- Dipa Sharif-Ahmed, Senior Advisor, Innovative Finance and Market Access, USAID
- Kusi Hornberger, Partner & Global Knowledge Lead, Dalberg Advisors
WATCH THE VIDEO:
Learn more about the Reimagining Private Capital for SDGs webinar series.
Additional Resources
HETA: Powering Health with Clean Energy in Africa
Across sub-Saharan Africa, at least 100,000 health facilities lack access to reliable electricity and internet connections. This gap threatens health when clinics can’t keep the lights on for nighttime services or reliably provide patients with oxygen…
Empowering Women and Catalyzing Markets to Improve Nutrition
What influences a women’s ability to provide a balanced diet for herself and her household? In Bangladesh, the complex food system involves agriculture and non-agriculture market actors who affect food availability, access, utilization, and stability…
Discussing Blended Finance: From Gender Lens Investing to Global Health
James Soukamneuth and Prachi Maheshwari explain how Abt’s blended finance approach to scaling investment in women’s SMEs could be replicated in global health.
Investing in Women
While gender gaps are shrinking for some labour market outcomes, substantial challenges remain globally and in Southeast Asia. Detailed examination of data indicates that women are much less likely to work full-time than men and are less likely to…