Examining the role of impact investors as international aid dries up

As traditional aid flows to growth markets from institutions like USAID dry up, Vital Capital’s Managing Partner, Nimrod Gerber, sees opportunity in adversity. In a recent interview with African Business, Nimrod argues that shifting from grant-based aid to commercially driven investment could ultimately result in more resilient, faster growing African businesses. With sectors like energy, water, food, and healthcare facing funding gaps, impact investors are well-positioned to step in to support ecosystem building and private businesses.

In particular, Nimrod highlights the role of blended finance—where development finance institutions absorb early losses—to unlock private capital. He also points to the untapped potential of African pension funds as a powerful force in supporting sustainable development.

 

Read the full article here.

Vital Discusses Disproving the Perceived Risks of EM investing with Environmental Finance

Vital Capital Managing Partner Nimrod Gerber recently caught up with Environmental Finance. Nimrod discussed the challenges of disproving perceived risk of emerging market investing, why the typical private equity playbook fails to work in sub-Saharan Africa, and what the continent’s pending demographic shift means for investors.

“Africa is entering an outstanding demographical shift, as its 1.4 billion population is expected to increase to 2.5 billion people in less than 25 years. There has not been a demographic shift like that anywhere during the history of mankind. We believe that the companies that cater to the most basic needs and services, delivering them in an affordable and accessible way, are bound for success,” shared Nimrod.

 

Read the full interview here.

Why the Climate Crisis Demands Investors Rethink Impact: Environmental Finance Features Vital Capital Opinion

As we enter a new year that will be critical in the fight against climate change, Vital Capital’s Head of ESG & Impact, Tamar Pashtan, shares her views on why investors must not underperform on impact with Environmental Finance. The climate emergency is having a disproportionate effect on emerging economies so, as climate investment reaches record levels, it’s imperative that capital is directed towards the most impactful solutions and most underserved communities to ensure a just climate transition.

Our experience of investing in businesses and solutions that create transformational impact and tackle some of the most pressing challenges facing the planet, has taught us that intentionality from the outset is key. The article reveals how our impact rating tool, the Vital Impact Diamond, enables us to “look for transformational outcomes: big leaps forward, not small steps” and calls on investors to embed impact goals in their decision-making processes.

 

The article is available here.