Catalyzing impact investing in Senegal | D. Blog

By Afua Sarkodie-Kupka

Impact investments ? or investments that generate positive financial, social, and environmental returns ? are growing significantly as funders look for new ways to have sustainable impact. In Senegal, the government is taking an active leadership role in the field, finalizing an action plan to catalyze impact investing that will have exciting implications for both Francophone Africa and the continent more broadly.?

Senior Consultant Dieynaba Niang (right) discusses impact investing with a representative from APIX on Senegal's national news.

Dalberg partnered with Senegal?s National Investment Promotion Agency (APIX) and the Presidential Investment Council?s 2012 Working Group, focused on increasing the social impact of private investment, to better understand the role of Senegal?s government in building an impact investing industry. Financed by the Rockefeller Foundation, the study was recently presented at a national workshop that brought together 70 representatives from relevant public and private institutions to discuss how policy tools can be used to catalyze impact investment. The group also discussed how Senegal?s government can leverage its resources and attract much larger sums of private capital to pursue solutions for major social problems. ?The findings from the study and workshop will contribute to a broader pan-Africa assessment led by the Africa Venture Capital Association and Bridges Ventures.

The Impact Investing Policy Collaborative (IIPC) played an important role in the study, helping our team understand how policy interacts with private capital markets to increase the supply, demand for, or direction of capital, in addition to why this is crucial for impact investors navigating the market, policy makers, and other stakeholders. In Senegal, the government has implemented key pieces of legislation like the Investment Code, which seeks to incentivize investors to direct capital toward opportunities that will have positive outcomes for agriculture, health, education, and other development sectors, as well as incentivize businesses that are located in underserved regions outside of the capital.

Dalberg participated in an impact investing workshop in November.

Although these policies are supportive of impact investing, some existing legislation is less beneficial. Agriculture has been identified as Senegal?s engine for poverty alleviation and economic development, but policies to ensure food security have indirectly hampered agri-business activities. For instance, the government suspended duties on select imports, such as rice and powdered milk, to drive down prices and make food more affordable. Although this improves access for poorer consumers, it discourages local agricultural production, hurting farmers and local businesses that produce rice, milk, and their derivatives.

The complete report is available on Dalberg?s web site in both English and French.

Afua Sarkodie-Kupka is a Project Leader in Dalberg?s Dakar office.

Source: http://dalberg.com/blog/?p=1518&utm_source=rss&utm_medium=rss&utm_campaign=the-role-of-senegal%25e2%2580%2599s-government-in-catalyzing-impact-investing

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