Impact Investing
The United Nation’s Sustainable Development Goals (“SDGs” or “Global Goals”) introduced a unique narrative to traditional investing called: Impact Investing. A market for purposeful change that ensures that “no one gets left behind.”
Serving the Underserved
Financial inclusion seeks to ensure that more people have access to affordable financial products and services, which in turn enables economic development, reduces inequality, and boosts financial resilience. Out of the 17 Global Goals, financial inclusion deliberately targets the following:
Impact Results
The Global Impact Investing Network (“GIIN”) highlights how assets in the financial inclusion sector look to make material progress in at least four of the following crucial areas:
Sustainable Funding
Businesses and economies that focus on bolstering impact generating initiatives make significant strides in achieving the Global Goals. Africa’s future internet economy is a means to serving the underserved, and has the potential to reach 5.2% of the continent’s gross domestic product by 2025, which would contribute nearly ZAR2.7 trillion (USD180 billion) to its economy.
Sustainability funding is an attractive option for impact businesses seeking to raise equity and/or debt capital for social, sustainable, and green initiatives. The JSE Sustainability Segment has raised ZAR10.5 billion (USD700 million) through sustainable debt funding to date. As seen in figure 2, global demand for sustainable funding solutions is on the rise, typically due to its tendency to draw more attention from impact investors.
Merchantec Capital: Trusted Advisory
Merchantec Capital is a leading corporate finance house which has 21 years of extensive experience in assisting clients in a variety of sectors. Over the past several years, Merchantec Capital has successfully raised over ZAR2 billion (USD100 million) of capital on the debt and equity markets for businesses in the private and listed space. Merchantec Capital has become a trusted partner to its clients by leveraging its vast network and expertise to deliver unparalleled standards of quality service, particularly in the impact investment space wherein we have assisted a number of clients raise both debt and equity capital both locally and offshore.
M&A Services
