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 Capital’s Managing Partner Contributes to New WEF Report on Africa’s Digital Transformation

The World Economic Forum’s Regional Action Group for Africa recently published an important report examining the impact of digital transformation in Africa and the role of policymakers and investors. Titled “Attracting Investment and Accelerating Fourth Industrial Revolution Adoption in Africa,” the report aims to stimulate a more considered approach by policymakers and investors for accelerating the region’s digital transformation and spurring investment that aligns with environmental, social and governance (ESG) aspirations.

The report includes contributions from Vital Capital Managing Partner Nimrod Gerber, who discusses how strong access to financing can assist African businesses in rising to the challenge of the Fourth Industrial Revolution. In particular, Gerber states that the lack of an investment regulatory framework can be prohibitive to funding projects and can lead to uneven competition between investors who are ESG compliant and those who lack ESG credentials.

The full report is available on the World Economic Forum website, here.