NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, April 8, 2013

The Rockefeller Foundation and theTony Elumelu Foundation, founded by Nigerian philanthropist Tony Elumelu, have launched an impact investment fund for Africa.

The fund, called the Impact Economy Innovation Fund (IEIF) was officially launched on Friday at an Impact Investment Forum in Cape Town, South Africa. The forum, which was attended by many leading African entrepreneurs, was jointly hosted by The Rockefeller Foundation, The Tony Elumelu Foundation and the Bertha Centre for Social Innovation & Entrepreneurship at the University of Cape Town (UCT) Graduate School of Business with the aim of introducing Africa’s business leaders to the concept and practice of impact investing.

Impact investing, a relatively new concept in African investment circles, typically refers to investments that aim to solve pertinent social and economic challenges while generating a financial return. The impact investing industry channels capital to market-based solutions in areas such as affordable housing, clean technology, financial services for the poor, sustainable agriculture and other related sectors while targeting returns ranging from below market to market rate.

Speaking on the new fund, Dr. Wiebe Boer, CEO of the Tony Elumelu Foundation said, “Impact Investing is a critical tool in driving our agenda of promoting entrepreneurship for lasting economic and social development in Africa. We want to see more deals of this nature and our commitment to support this new fund is just the beginning.”