On 16 January 2019, EuroCham hosted a Breakfast Talk on “Impact Investing” organized and moderated by our Programs Director Nodira Amd.
Joining from Washington DC via a video conference, our guest speaker Ms. Rachel Bass from the Global Impact Investing Network (GIIN), presented the findings of their regional report on the Landscape for Impact Investing in Southeast Asia, a comprehensive analysis of impact investing activity in the region between 2007 and 2017. GIIN, the Global Impact Investing Network, has become the standard bearer for the impact investment industry. GIIN focuses on reducing barriers to impact investment by promoting activities, education, and research.
The report finds that Southeast Asia’s impact investing ecosystem has developed significantly over the last decade, with USD 904 million deployed to the region by private impact investors (PIIs) mainly in Financial Service, energy, ICT and agriculture, and around USD 11.2 billion deployed by Development Finance Institutions (DFIs) with, within Cambodia, 90% of the deals made in Financial Services (MFIs).
The report also outlines challenges and opportunities for impact investors that may inform investment decisions in each country.
- The lack of investible pipeline offers a key opportunity to provide technical assistance to improve the investment readiness of entrepreneurs.
- The high sourcing and due-diligence costs give the opportunity to develop a cadre of local fund managers
- The limited local investors and reliance on foreign capital mean there are large pools of dormant, local capital in Asia to raise from.
- The lack of demonstrated success needs to be addressed by growing a track record and demonstrate the sustainability of the model.