The phenomenon of “Impact Investing”, investments with the intention to generate social and environmental impact alongside a financial return, is growing rapidly in South Africa. It is increasingly recognised that entrepreneurs will have an extraordinary influence on both the South African economy and solving what have previously appeared to be intractable social challenges. Despite this realisation, finding and securing investment opportunities in South Africa, is difficult. Investors have reported that the lack of “investable opportunities” with a track record is a major constraint to scaling the impact investing industry.
Entrepreneurs that are focused on education, health care, housing, food security, financial inclusion, energy, water, and other climate adaptation/change issues are critical to creating a more socially just country. Yet, these businesses like many others also face a broad spectrum of challenges when trying to grow. These include amongst others:
- Identification of and securing access to target markets;
- A clear revenue generation model, financial plan and strategic direction; and
- Difficulty in securing access to capital to fund growth in either capacity or different geographies.
To address some of these challenges, Impact Amplifier has been contracted to manage the SAB Foundation’s new Social Innovation Investment Readiness Accelerator and the Fund.
The programme will offer entrepreneurs the skills, knowledge, documentation and funding required for immediate success, but will also position them for future rounds of funding from other investors.
SAB Foundation will be selecting participants from its previous Social Innovation Award recipients between 2011 to 2016 that have the potential to growth. The participants will be selected by the end of August 2018.