What Financing for the Private Sector in Africa? The Role of Impact Investing?

The private sector is a driver of growth. However, African firms, regardless their size, suffer from a lack of financing, especially in areas where traditional financing solutions are insufficient. Could impact investing be a possible alternative? Companies – large, medium, small – are one of the main sources of economic growth, as they actively participate in job creation, generate income and contribute positively to social and environmental well-being. However, the private sector in Africa faces significant financing gap, especially in areas where traditional financing solutions as banking credit are lacking. This is where impact investing emerges as a promising alternative, particularly for companies having important externalities for their communities.