DFID believes that the impact investment market is worth fostering. By demonstrating social impact can be achieved via impact investments and encouraging more people to make commitments to impact investment, more enterprises will be created or strengthened and more poor people will be able to access jobs, incomes and affordable goods and services suited to their needs.
The DFID Impact Programme aims to catalyse the markets for impact investment in Sub-Saharan Africa and South Asia to stimulate investment into businesses that benefit poor and low-income people through improving access to affordable goods and services and enabling income generating opportunities at the Base of the Pyramid (BoP). The programme has two core components: two investment vehicles managed by CDC and a range of market building activities.
Through the creation of the DFID Impact Fund, the programme aims to draw in sustainable private sector sources of capital into the impact investment market and demonstrate the viability of impact investments over the long term.
Through the creation of the DFID Impact Accelerator, the programme aims to generate economic opportunity and employment through the creation of both direct and indirect jobs, and by increasing access to basic goods and services, especially in remote areas or fragile states
Market Building Activities
Through the market building activities the Impact Programme seeks to reduce barriers and bottlenecks in the impact investing value chain aiming to make impact investing as effective, efficient and as attractive to investors, intermediaries and enterprises
For a visual representation of how the DFID Impact Programme aims to build the impact investment market in Sub-Saharan Africa, watch the Programme’s Theory of Change Prezi.
The programme aims to directly benefit over 5 million people and to indirectly benefit significantly more through its demonstration effect on the wider market. The programme started in 2012 and DFID plans to provide up to £197 million over 16 years to this end.