Filters: Emerging Markets

Weekly Impact Investment Market Update: October 20, 2017

Posted on by MBC Strategic

Impact Investing & ESG
 

Leveraging Impact Investing to Achieve the SDGs

All the aid and philanthropy in the world combined leaves a $2.5 trillion a year gap in the money needed to finance the United Nations Sustainable Development Goals.

Engaging Local Communities to Unlock Investment in the Blue Economy

Better fisheries management, cooperative ownership and ocean restoration could reverse an $83 billion annual loss.

Mini-Grid Developers Get Ready for Debt Capital Scale Up Access to Clean Energy

Microgrid Investment Accelerator plans to crowd in $115 million to connect 1 million people by 2036.

Millennials Love ESG, Just Not As Much As Their Grandparents

Sustainable and socially responsible investing isn’t just for the kids, according to a recent Allianz Global Investors study.

George Soros’ $18 Billion Gift to Open Society Foundations Could Boost Impact Investments

The hedge-fund billionaire and a global advocate have transferred $18 billion in assets to his long-time philanthropy.

 

United States & Europe
 

Who Has the World’s No.1 Economy? Not the U.S.

By the most measures, China has passed the U.S. and is pulling away.

Impact Investors Ask Government to Plough £2bn More into ‘Inclusive Economy’

A national body including some of the key figures in impact investment has called on the government to put £2bn into a fund to promote an “inclusive economy.”

 

Developing Economies
 

The IMF Has a Message for Emerging Markets: Take Advantage of Easy Money While It Lasts

Emerging markets should get their fiscal houses in order while monetary conditions remain loose, the International Monetary Fund warned.

Emerging-Market Currencies Are Bound for Turbulence in the Fourth Quarter

Emerging-market currencies, which have enjoyed solid gains to date, could face intense pressure in the last three months of 2017.

Brazil Minister: Amazon Deforestation ‘Drops by 16%’

Amazon deforestation is down by 16% in the year to July 2017 compared to the previous 12 months, the Brazilian government says.

Chile Presidential Hopeful Pinera Vows to Double Economic Growth

Chile’s conservative presidential candidate Sebastian Pinera on Wednesday promised to double economic growth and by 2025 make the country the first in Latin American to achieve “developed nation” status.

Localizing SDGs Event Showcase Colombia’s SDG Implementation Planning

The event began with an overview of Colombia’s efforts to integrate SDG targets into its National Development Plan and Peace Agreement as well as to meet their international commitments, including the Paris Agreement on climate change, their bid for OECD accession and the SDGs.

Islamic Development Bank Pledges $800M to Boost Economies of 7 Developing Countries

The Islamic Development Bank (IDB) has signed agreements worth $804 million with seven countries in Africa and Latin America in order to help boost their economies.

Namibia: Farmworkers’ Minimum Wage Up By 25 Percent

Successful wage negotiations between the Agricultural Employers Association, Namibia National Farmers Union, Namibia Emerging Commercial Farmers Union and Namibia Farm Workers Union last week resulted in the previous farmworkers’ minimum wage of 2014 being increased by 25%.

Namibia Adopts Plan to End Discrimination Against Women

Windhoek-Namibia is in the process to implement the plan of action of the Convention on the Elimination of all Forms of Discrimination against Women 2017-2020.

 

Weekly Impact Investment Market Update: October 13, 2017

Posted on by MBC Strategic

Impact Investing & ESG
 

The 2017 Best for the World Funds

Best for the World Funds have made a deep commitment to measuring impact using a holistic, third-party standard: The GIIRS Impact Rating system, developed by B Lab.

Impact Investing and SOCAP Turn 10

There’s a birthday party this week in San Francisco. SOCAP (Social Capital Markets) and impact investing are both celebrating their tenth birthday.

The Impact Investment Strategies that Helped Make These Funds among the ‘Best for the World’

B Lab’s annual list of top-ranked impact funds includes some you may not have heard of — yet.

ESG Funds Outperform Active Rivals

For the second straight year, ESG funds outperformed conventional active funds in Barron’s annual survey of sustainable funds in Morningstar’s database.

Goldman Says ESG Investing Has Gone Mainstream

Goldman Sachs Asset Management officials say ESG investing, along with impact investing, are no longer specialty niches, but are taking a prominent place on the investment menu.

 

United States & Europe
 

US Withdrawal from Paris Agreement will Impact Developing Nations, Says ECA’s Murombedzi

The withdrawal of the US from Paris Agreement will have massive implications on US support to the financing of climate actions in the developing world, says James Murombedzi, Coordinator of the African Climate Policy Centre at the Economic Commission for Africa.

House Approves $36.5 Billion Hurricane and Wildfire Aid Package

The House, dismissing concern for the rising cost, approved a $36.5 billion aid package on Thursday that would provide hurricane and wildfire relief funding while bailing out the financially troubled National Flood Insurance Program.

IMF Tells Rich Nations that Greater Urgency Needed on Climate Change

The IMF warned the world’s richest nations to have a greater sense of urgency about climate change, a day after Tony Abbott delivered a bizarre speech claiming climate change was “probably doing good”.

European Council Calls for Mobilization of Public and Private Finance for Climate-resilient Development

The European Council has emphasized the importance of making progress on the Paris Agreement’s “transformational objective” of making finance flows consistent with a pathway towards low-carbon and climate-resilient development.

 

Developing Economies
 

Global Unemployment Passes 200 million in 2017, UN Labor Agency Reports

More than 200 million people are out of work around the world – an increase of 3.4 million since last year, the United Nations labor agency said Monday, calling for policies that can recharge “sluggish” growth of small and medium-sized businesses.

Investor Uncertainty Looms Over Sustainable Development Goals

A changing investment policy landscape has investors feeling uncertain at a stage when the world’s most vulnerable economies desperately need foreign cash, UNCTAD Secretary-General Mukhisa Kituyi has told an international meeting on investment convening this week in Geneva.

Economic Diversification Even More Crucial as the Fight against Climate Change Revs Up

The need for developing countries to diversify the portfolio of goods and services they produce has become even more pressing as governments move to act on the promises of the Paris climate agreement, UNCTAD Deputy Secretary-General Isabelle Durant has told an international meeting in Geneva.

Colombia Peace Deal Cannot be Modified for 12 Years, Court Rules

Colombia’s next three governments must comply with a 2016 peace deal signed with the Marxist FARC rebel group, the Constitutional Court said in a ruling late on Wednesday, shielding the accord from potential changes should the opposition win next year’s elections.

Liberia Goes to Polls to Find Successor to Africa’s First Female President

Candidates to replace Ellen Johnson Sirleaf include Prince Johnson, a former rebel leader who ordered the killing of the ex-president.

Zambia Happy with Africa’s 9 Trillion Dollars Expenditure Towards Infrastructure Development

Zambia has expressed happiness with Africa’s annual expenditure of nine trillion dollars towards infrastructure development Zambia’s High Commissioner to South Africa Mr. Emmanuel Mwamba.

China’s Secret Aid Empire Uncovered

Not very long ago, China was a foreign aid recipient. Now, it rivals the United States as one of the world’s largest donors, through traditional development aid or through financial loans.

Global Firms Join to Bet on Indonesia as Next Start-Up Frontier

Big-name investors including Expedia and Alibaba are pumping billions of dollars into Indonesian tech start-ups in a bid to capitalize on the country´s burgeoning digital economy and potential as Southeast Asia´s largest online market.

Weekly Impact Investment Market Update: October 06, 2017

Posted on by MBC Strategic

Impact Investing & ESG
 

Major Asset Managers Moving Slowly but Surely Toward Impact Investing

Nine of ten of the largest U.S. asset managers have launched or are exploring strategies.

TPG Seals Record $2 Billion for Fund Co-Led by Bono

Private equity firm TPG collected $2 billion for The Rise Fund, tapping growing demand for impact investing to create the largest pool of its kind.

Filling the Education Funding Gap in India

Impact investors are missing key opportunities in India’s education sector.

Bain, Alts Peers Chase ‘Holy Grail’ of Rating Impact Results

A new challenge looms for the impact investing market, which across its first decade has labored to prove that fund managers and strategies can produce competitive financial returns alongside a measurable social benefit.

 

United States & Europe
 

Labor Case before Supreme Court and Jobs Number for September

The Supreme Court will open its new term by hearing arguments about whether companies can require workers to forfeit their rights to join together in lawsuits or arbitration proceedings against their employers.

U.S. Lost 33,000 Jobs in September as Hurricanes Roared Through

The Labor Department released its official hiring and unemployment figures for September on Friday morning, providing the latest snapshot of the American economy.

 

Developing Economies
 

The Global Competitiveness Report 2017-2018

Ten years on from the global financial crisis, the prospects for a sustained economic recovery remain at risk due to a widespread failure on the part of leaders and policy-makers to put in place reforms necessary to underpin competitiveness and bring about much-needed increases in productivity.

Stanford Launches Research Center Focused on Global Poverty and Development

The Center on Global Poverty and Development joins students and faculty from across the university and connects them with policymakers and business leaders committed to fighting poverty.

Historic Milestone Reached in Global Fight Against Mercury Pollution

In a landmark display of international cooperation, more than 160 countries committed to tackling one of the world’s greatest chemical health threats at the first meeting of the Conference of the Parties to the Minamata Convention on Mercury.

Startup Accelerators Have Become More Popular in Emerging Markets – and They’re Working

For decades, we have heard that emerging markets are poised for huge growth that will yield even greater prosperity. But a long list of obstacles always seems to be getting in the way of realizing this potential. Startup accelerator programs have been touted as one path to faster progress.

Emerging Markets Lag in Software

Despite the huge size of emerging economies they have yet to produce global leaders in software.

Peru Targets 100% Rural Electrification by 2021 with Transmission Upgrades, Natural Gas and Solar

Head of the Ministry of Energy and Mines, Cayetana Aljovín, ratified the electrification commitment of the government of President Pedro Pablo Kuczynski, at the 6th International Energy Day Congress.

New Marine Parks Protect 290000 Square Miles of Ocean

The parks protect a combined area in the Pacific Ocean more than twice the size of Germany.

Puerto Rico’s Agony Makes the Case for Climate-Resilience Investing

As risks rise, so does the value of mitigating them.

Southeast Asia Banks Urged to Strengthen Environment Policies

Banks and regulators in Southeast Asia should strengthen financial-sector rules and guidelines to promote funding for environment-friendly projects in a region threatened by deforestation and climate change.

World Bank says 64% of People Who Live in Slums are in Asia

Around 64% of people who live in urban slums are in Asia, as the region experienced rapid rural-to-urban migration that has left millions of urban dwellers in poverty, according to the World Bank.

Nigeria Recovers $3 Billion in Large-Scale Energy Sector Reform

The government of the West African country, the biggest oil producer on the continent, is currently carrying out a large-scale reform in the energy sector aimed at improving transparency and revenues, after years of graft in the national petroleum company and other local entities that have cost the state coffers billions.

World Food Programme Cuts Rations for Refugees in Kenya

The U.N. World Food Programme is cutting food rations by 30 percent for more than 400,000 refugees living in camps in Kenya due to insufficient funding.

Weekly Impact Investment Market Update: September 29, 2017

Posted on by MBC Strategic

Impact Investing

The Real Impact of Impact Investing

Whether it concerns climate change, supply chains, human rights or corruption, investors increasingly seek to better understand the impact that their investments are having.

 

MSCI Launches Four ESG Factor Indices

SCI has launched four ESG factor target indices in response to increasing demand from clients.

 

Schroders: Sustainable Investment on the Rise as ESG Issues Gain Prominence

Sustainable investments are becoming an increasing part of investors’ portfolios with over half of UK investors raising their allocations over the past five years.

 

Insider Perspective: UNGA and Climate Week

Last week, heads of state, policymakers, business leaders, academics and activists gathered in New York City during the UN General Assembly (UNGA).

 

The Journal of Environmental Investing: State of ESG Data and Metrics

The Journal of Environmental Investing has released its eighth publication, covering the state of ESG data and metrics for the first time.

 

Accelerating Entrepreneurs: Insights from USAID’s Support for Small and Growing Businesses

USAID’s Partnering to Accelerate Entrepreneurship (PACE) Initiative aims to catalyze private sector investment into early-stage enterprises and help entrepreneurs bridge the pioneer gap—thus unlocking the potential of thousands of promising enterprises around the world.

 

United States & Europe

U.S. Climate Change Policy: Made in California
A peculiar confluence of history, legal precedent and defiance has set the stage for a regulatory mutiny in California that would reverberate throughout.

 

The US is the Second-Most Competitive Economy in the World, According to the World Economic Forum

After three years in third place, the US has climbed up one spot to be the second-most competitive country in the world, after Switzerland—its highest ranking in eight years. The US edged out Singapore, which slipped to third.

 

Europe Could Attract $417 Billion with Higher Wind-Power Target

Europe’s wind power industry may attract 351 billion euros ($417 billion) of investment by 2030 if countries adopt reforms and targets for their energy systems in the next year.

 

Denmark Launches Fund to Mobilize $5 Billion for the Global Goals

The $1 billion SDG Investment Fund aims to attract $5 billion from private investors over the next four years to tackle the U.N.’s 2030 agenda in low- and middle-income countries.

 

Developing Economies

Brazil Declares It Won’t Abolish Massive Reserve in the Amazon, After All
Roughly a month after the Brazilian government said it would open a wide swath of Amazon rain forest to mining interests, it has backpedaled on that controversial decision.

 

Colombia: New UN Mission Begins Operations; Focus on Reintegrating Ex-Fighters

The second post-conflict United Nations mission in Colombia has started its operations, succeeding the UN entity which was mandated to verify the implementation agreement between the Colombian Government and the Revolutionary Armed Forces of Colombia-People’s Army (FARC-EP) concerning the ceasefire and cessation of hostilities, and laying down of arms.

 

Investors Reward Argentina for Taming Inflation

Stocks? Up. Bond returns? Strong. The financial sector? Improving. Money managers have noticed.

 

Women Inc: Addressing India’s Gender Gap

India may be the fastest growing economies in the world but she still ranks 87th of 144 countries in the world ranking on closing the gender gap. Latest figure show an alarming dropout rate of women from jobs both at the highest level – the post graduate level – and at the lowest illiterate levels.

 

ADB Raises Growth Forecasts for Asia on Exports Revival

A rebound in global trade and improved prospects for China have provided a boost to Asian economies, prompting the Asian Development Bank to raise its growth forecast for the region.

 

Weekly Impact Investment Market Update: September 22, 2017

Posted on by MBC Strategic

Impact Investing & ESG
 

Credit Suisse Looks to Make an Impact with New Investment Wing

Credit Suisse has set up a new department to nurture socially conscious investing, the latest effort by a major bank to cater for growing demand for impact investing.

Barclays Launches Impact Investment Fund of Funds

Barclays has launched a fund of funds that invests in a global range of multi-asset ‘impact’ investment strategies.

Impax Acquires Pax to Create $14B Impact Investing Firm

Two impact investing leaders have combined to create a $13.9 billion investment management firm that will also have expanded research and client services capabilities.

 

United States & Europe
 

U.S. Governors at U.N. Assembly: ‘You Have Allies’ on Climate Change

The governor of California huddled on Sunday night with European, Brazilian and small-island leaders and pledged to work with them on climate change.

At Climate Week NYC, Business Leaders Charge Forward

From seminar rooms to soundstages to the crowded U.N. Plaza, one theme emerged from Climate Week NYC: Decarbonizing has become big business and will stay that way.

Theresa May Urges EU to Retain Trade Terms for Two Years after Brexit

PM Theresa May has said there should be a transition period of “about” two years after Brexit, during which trade should continue on current terms.

 

Developing Economies
 

Less Foreign Borrowing, Longer Bonds Offset Rise in Emerging Debt Levels

A large-scale shift towards domestically issued and longer-dated bonds in emerging markets has helped build resilience to external shocks despite the increase in overall debt levels.

Brazil Set for Largest Amazon Restoration Project Ever – Aiming to Recover 30,000 hectares by 2023

A major initiative has been announced that will seek to reclaim 30,000 hectares of degraded area within the Brazilian Amazon over the next six years.

Peru Loses Its Prime Minister. What Next?

The president has suffered a blow, but may recover from it.

Peru’s PM: New Cabinet to Revive Slumping Public Investments

Peru’s prime minister said on Monday that the country’s new Cabinet will focus on reviving public investments as it seeks to mend fences with the opposition party that forced President Pedro Pablo Kuczynski to form a new government.

Chile’s Electricity Should Be 100% Renewable by 2040, Says Conservative Presidential Candidate

The goal is that by 2040, Chile has a 100 percent clean and renewable electricity grid and a 100 percent electric public transit system.

Mexico Earthquake Kills Hundreds, Trapping Many under Rubble

A powerful earthquake struck Mexico on Tuesday, toppling buildings, killing children in a school that collapsed, rattling the capital and sending people flooding into the streets for the second time in just two weeks.

Emerging Markets – Emerging Stocks at 3-yr Highs as Tech Surge Lifts Asian Bourses

A surge in technology stocks helped lift Asian bourses to decade highs and emerging market shares to three-year highs on Monday.

South Africa Sees No Hurry for New Coal and Gas Projects

South African programs to add coal and gas power generation from independent providers should wait until policies are updated and the nation’s future needs are clearer.

How Colombia’s 2018 Elections are Going to Seriously Affect Governability

Almost all Colombia’s presidential candidates announced to run without the support of political parties, making it unclear how the incoming leader will govern the country. In total, 29 candidates have announced to be running without the support of a political party.

South Africa Economy Bruised but Not Broken Amid Political Turmoil and Downgrade

South Africa extricated itself from a ‘technical’ recession, despite being slapped with a credit downgrade.

Tanzania: State Injects 85bn/ – in Rural Communication, Benefits 3,000 Villages

Tanzania’s government has so far spent over 85 billion to provide rural dwellers in 3,000 villages with communication services.

Zambia to Resume Talks with IMF in October over Possible Aid Program

Zambia will resume talks with the International Monetary Fund on an aid program in October and hopes to get IMF board approval by the end of the year.

Presidents of Zambia, Uganda and Malawi Renew Efforts to End Child Marriage

President Edgar Lungu of Zambia, President Yoweri Museveni of Uganda and President Peter Mutharika of Malawi have pledged to support efforts in ending child marriage in Africa by 2030.

Kenyan Election May Be Delayed Over Results System, Nation Says

Kenya may have to delay a rerun of its presidential election scheduled for next month if the Supreme Court requires the country to host the results-transmission system.

 

Weekly Impact Investment Market Update: September 15, 2017

Posted on by MBC Strategic

Impact Investing & ESG

Barclays Launches an ‘Impact Investing’ Fund Seeded by Harvey McGrath in Response to Demand

Barclays has developed and launched an impact investment vehicle, seeded by Sir Harvey McGrath and designed to reflect the social conscience of the modern investor; together they believe conscience and credible returns can be compatible.

 

 

Open Daily: The Impact Data Flywheel Starts to Spin

The impact data flywheel is starting to spin. ImpactAlpha’s Operation Impact series has highlighted advances that are starting to make it possible to add “impact” (to risk and return) as a core consideration in investment decision-making. The series has explored: the new culture of transparency around impact financing and performance; higher-value, lower-cost data about the real impact of investments on customers and communities; and crisp, comparable data to drive improvements in impact management.

 

Impact Investments in India Don’t Mean Lower Returns for Investors: McKinsey

Busting the myth that impact investing means lower returns, a recent report by McKinsey shows that impact investments in India have demonstrated an ability to employ capital sustainably while meeting the financial expectations for investors. This has resulted in impact investments in India topping $1 billion for the second year in a row in 2016. The value of impact investments reached $1 billion for the first time in 2015, and surpassed that in 2016 with $1.1 billion investments.

 

 

Millennials are Driving a Shift in How the Ultra-Wealthy Manage Their Money

Family offices, which manage the money of the super rich, are focusing more on philanthropy and impact investing, according to a report out by UBS, the Switzerland-based financial services firm. Over 40% of family offices are set to ramp up allocation towards sustainable or impact investments, which seek to deliver outsized returns and remedy environmental and social ills, according to the report.

 

ESG Assets Top $164 Billion in Q2

Assets invested in environmental, social, and governance strategies topped $164 billion as of June 30; the average fund size was $562 million and there were about 290 active funds. While assets have grown nearly 20% since the end of 2015, and 60% since the end of 2012, the number of available funds has decreased from 2015’s peak of 324, and has since hovered around 300 total funds.

 

Growth, Millennial-Driven Impact Investing in New Global Family Office Report 2017

Sara Ferrari, head of global family office group at UBS, said the 2017 report showed as millennials became more involved in their family offices, they were nudging along the trend towards impact investing, with 40% of family offices saying they planned to increase their allocation in this investment class over the next year.

 

Innovations in Financing Structures for Impact Enterprises: Spotlight on Latin America

Growing interest in the financing needs of impact enterprises has given rise to meaningful experimentation in deal structuring and the emergence of some early good practices among entrepreneurs and investors. Three clear trends have emerged: a growing appetite for different forms of capital, an emerging marketplace of innovation in financing structures, and an increasing need to do more. This report was prepared to foster the flow of more capital that is adequate for early and growth-stage impact enterprises in light of these trends. The research and exploration done for the report was supplemented with direct engagement with fund managers, asset owners, and impact entrepreneurs to ensure its applicability to their work.

 

ADB Proposes New Approaches to Financing Energy Projects

Governments of cash-strapped developing nations should start exploring a range of innovative financing solutions to support the development of environment-focused infrastructure projects such as financially bankable solar installations, the Asian Development Bank (ADB) says in a new report.

 

The 2017 Best for the World Honorees

A total of 846 businesses across 52 industries from 48 countries are recognized on the full list of 2017 Best for the World honorees.

 

United States & Europe

U.S. Stocks Reach Another Milestone as S&P 500 Vaults Past 2,500

The benchmark gained 0.2 percent to 2,500.23 Friday, capping its biggest weekly advance since January, as technology shares rebounded and banks climbed with Treasury yields. Up 12 percent since January, the S&P 500 is on course for its best annual gain in four years.

 

 

Developing Economies

Nigeria Announces $5.8 Billion Deal for Record-Breaking Power Project

The 3,050-megawatt Mambila hydroelectric power project in the state of Taraba will be delivered by a consortium of Chinese state-owned construction firms. The megaproject will feature four dams between 50 and 150 meters tall, and take six years to complete, the Minister of Power, Works and Housing, Babatunde Fashola, told reporters in Abuja.

 

Are Women Entrepreneurs the Key to Global Economic Development?

Today women are as likely as men to recognize the business opportunities around them. In Africa and most of Asia, fear of business failure rates among women are equal to or less than that among men. Women consider themselves strong innovators. In developing countries in particular, the opportunities offered by women entrepreneurs help grow markets and increase employment prospects.

 

$19 Billion in Emerging-Market Debt Boils Down to the Dollar

Investors have poured $19.2 billion into local-currency emerging-market debt funds this year. That’s the fastest pace of flows since 2010, helping to drive some of the biggest returns on record.

 

Weekly Impact Investment Market Update: September 8, 2017

Posted on by MBC Strategic

Impact Investing & ESG

How Big Companies are Turning to Small Businesses to Expand Their Reach?—?and Their Impact

More and more multi-national corporations have recognized that working with local small and growing businesses?—?commercially viable ventures with five to 250 employees, and with significant potential and ambition for growth?—?can boost a corporation’s bottom line and improve the lives of people in less-developed economies. Supply chains, distribution, technology, and reaching new markets are all key areas where the corporation and small and growing businesses can benefit.

Business Reporting on the SDGs: An Analysis of the Goals and Targets

On September 21st, GRI and the UN Global Compact will launch the first outcome publication of their groundbreaking Action Platform for Business Reporting on the Sustainable Development Goals (SDGs). The publication An Analysis of the Goals and Targets, demystifies the esoteric world of sustainability disclosures for companies seeking to report their impact on the SDGs.?

ESG ETFs Help Retail Investors Track Institutional-Level Strategies

Environmental, social and governance, or ESG, investing has found a solid footing among institutional investors, but the theme is slowly trickling down to advisors and retail investors. With the emergence of ESG-related exchange traded funds, adoption could also continue to pick up pace.

A New Bond Taps Private Money for Aid Projects in War Zones

Investors might be expected to run a mile from a deal on offer in a conflict-torn part of Africa. At best, it will pay an annual return of 7%; at worst, 40% of the original investment is lost. But a dozen social investors have pooled SFr26m ($27m) to finance the world’s first “humanitarian impact bond”, issued by the International Committee of the Red Cross (ICRC). It will pay for three rehabilitation centers to be built and run in the Democratic Republic of Congo, Mali and Nigeria.

SOCAP Taps Impact-Investing Leaders to Curate “Spotlight” Sessions

Organizers have turned over a portion of the conference to guest curators to “spotlight” key questions facing the impact community. B-Lab, the nonprofit leading the B Corp movement, will bring together leaders to explore how businesses can be “systemic change agents for good.” Mission Investors Exchange, the network of impact investing foundations, will dig into how foundations can work with partners to bring more capital to bear on social and environmental problems. CultureBank, founded by Deborah Cullinan and Penelope Douglas, will explore the role of artists and cultural movements in promoting lasting change.

 

United States & Europe

Congressional Democrats Back Harvey Aid with Three-Month Debt Limit Increase

Congressional Democratic leaders on Wednesday said they would support an effort to tie government financial relief in the aftermath of Hurricane Harvey to a three-month extension of the nation’s debt limit.

Emmanuel Macron, in Greece, Calls for ‘Rebuilding’ E.U.

In an appearance filled with symbolism on his first state visit to Greece, President Emmanuel Macron of France on Thursday outlined his vision for a stronger, more united Europe from the heart of the country whose severe financial problems threatened the viability of the euro.

 

Developing Economies

Brazil Emerges from its Worst Recession

Brazil confirmed its slow exit from the country’s worst recession on record Friday with the economy nudging up 0.2 percent, the second straight quarter to show growth, the official statistics office said. The increase in GDP surprised analysts polled earlier by financial newspaper Valor who’d been expecting no movement for the second quarter of the year.

Colombia Central Bank Expected to Make Final Rate Cut of Year

Colombia’s central bank board is expected to make its seventh and final interest rate cut of the year at its meeting on Thursday, taking advantage of falling inflation to try to boost the economy.

Nigeria and South Africa Emerge from Recession?

Two of the largest economies in Africa are growing again after recessions. Nigeria’s GDP expanded by 0.55% in the second quarter of 2017 year-on-year, according to the National Bureau of Statistics, ending five consecutive quarters of contraction. Quarter-on-quarter growth for the same period was 3.23%.

How Digital Finance Could Boost Growth in Emerging Economies

Two billion individuals and 200 million micro, small, and midsize businesses in emerging economies today lack access to savings and credit. Digital finance—payments and financial services delivered via mobile phones and the Internet—could transform the lives and economic prospects of individuals, businesses, and governments across the developing world, boosting GDP and making the aspiration of financial inclusion a reality.

Latin America and the Caribbean Seek to Transform their Food Systems to Defeat Hunger and Malnutrition

FAO and PAHO have invited countries from across the region to present exemplary experiences that allowed a change in the way that food is produced, marketed, and consumed. Transforming food systems will be key to the strategy that is needed to end hunger and all forms of malnutrition in Latin America and the Caribbean, FAO and PAHO indicated today.

Weekly Impact Investment Market Update: September 1, 2017

Posted on by MBC Strategic

Impact Investing & ESG

Impact Management: How the Right Data Can Drive Performance for People and the Planet

What, who, how much, at what risk- and how does the impact compare to what would have happened anyway?

Investing in Women: Closing the Gender Capital Gap in Southeast Asia

With assets under management estimated at US $114 billion, the impact investing space has grown strongly in the recent past and plays an important role in filling the SME financing gap in emerging markets, with a range of financial instruments that can be tailored to the individual needs of women’s businesses.

 

United States & Europe

US Employment Growth Misses Forecasts for August

The US economy added 156,000 jobs in August, less than the previous month and below expectations.

 

Developing Economies

Climate Change Threatens Agricultural Trade in Pacific Rim Economies, UN Agency Warns

With global warming expected to significantly impact future yields in countries located closer to the equator, the United Nations agriculture agency is calling on Asia-Pacific economies to take a leading role in adaptation and mitigation.

US $9.5 Billion City Water Projects Open for Investment

New research from CDP, the international environmental reporting and data non-profit, today reveals that US$9.5 billion worth of city water projects are now open for investment. The cities most concerned about their water supply lie in Asia and Oceania (84%); with serious risks also identified in Africa (80%) and Latin America (75%).

Sustainable Tourism- A Tool for Development and Poverty Eradication

The United Nations General Assembly has designated 2017 as the International Year of Sustainable Tourism for Development, underscoring its power to help eradicate poverty. Tourism is also singled out in three of the 17 Sustainable Development Goals. Specifically, tourism is tied to the goals on sustainable economic growth and decent employment, sustainable production and consumption, as well as the conservation and sustainable use of oceans.

Zambia’s Economic Outlook is Now Stable- Standard and Poor’s

Rating agency Standard and Poor’s has revised Zambia’s economic outlook from negative to stable. It says Zambia’s improving growth prospects and greater liquidity in its banking system have prompted it to change its outlook on the country.

Kenya Presidential Election Cancelled by Supreme Court

Kenya’s Supreme Court has annulled the result of last month’s presidential election, citing irregularities, and ordered a new one within 60 days.

The Potential for Growth and Africa’s Informal Economy

The informal economy in sub-Saharan Africa is the second-largest in the world, after Latin America and the Caribbean. From 2010-2014, the sub-Saharan Africa’s informal economy accounted for 38 percent of GDP to the region.

Using Plastic Bags is Now Illegal- and Punishable by Jail Time- in Kenya

After trying to institute a ban several times in the past decade, Kenya officially banned the use of plastic bags on August 28, 2017.

Here’s How China is Changing Africa’s Future

China is rolling out its Belt and Road Initiative, or BRI, a project to build a new “Silk Road” that could change the meaning of globalization itself. China’s inclusion of Africa in the BRI means the continent is suddenly confronted with a whole new set of opportunities and quandaries. On the positive side, some East African governments see the influx of Chinese investment in infrastructure and manufacturing as a way to bridge infrastructure gaps and to position their countries as new logistics and manufacturing hubs that could serve not only in Africa, but also the Middle East and Europe.

Weekly Impact Investment Market Update: August 25, 2017

Posted on by MBC Strategic

Impact Investing & ESG

Investment Managers Have Found a New Way to Give Back

The popularity of companies that give back — such as Warby Parker and TOMS, which donate a pair of glasses or shoes for every pair you buy — is spreading to investments. Investment manager Infrastructure Capital Advisors, for one, is giving 10% of its revenue from sales of its exchange-traded funds towards funding an organization aimed at closing the education gap with low income youth, called Tutoring America.

These Super-Rich Families are Investing their Fortunes to Help Others

Some of world’s richest families have signed up to a pact: They will invest parts of their vast fortunes in ways that improve the lives of others. The group, which calls itself The ImPact, has plenty of billionaire street cred: It’s the brainchild of Justin Rockefeller (a great-great grandson of John D. Rockefeller) and Josh Cohen (CIO of Tyden Ventures).

Can the Good Capital Project Boos Collaboration Among Impact Investing Silos?

The Good Capital Project (GCP), a new initiative from the people who run the Social Capital Markets Conference (SOCAP), is bringing together a variety of players in the impact investing world in an attempt to create more cohesion, pinpoint what’s hindering mainstream acceptance and increase the amount of available financing.

 

United States & Europe

European Central Bank Chief Says Monetary Policy Must Stay “Very Patient”

Mario Draghi, the president of the European Central Bank, said Friday that monetary policy must remain “very patient” even as an economic recovery finally takes hold in Europe. “A significant degree of monetary accommodation is still warranted,” he said. Mr. Draghi made the remarks here at the end of a speech devoted to the longer-term prospects of developed nations. He argued that the developed world must remain committed to globalization, which he described as critical to future prosperity.

Developing Economies

Impact On Record Episode 8: Dr. Moka Part 1

In the podcast, Impact On Record interviewed Dr. Moka Lantum. Dr. Lantum is co-founder of MicroClinic Technologies, a Nairobi based company, commercializing ZiDi, Africa’s first enterprise health management solution for BoP clinics/hospitals provided as a hardware-software utility service through partnerships with both public and private institutions across Africa. As a social entrepreneur, he is committed to also create youth employment opportunities in Health IT and improve last mile access to safe affordable drugs.

Zambia in the Process of Creating Opportunities for Private Sector Participation in Infrastructure Development

Finance Minister Felix Mutati has said the Zambian government is in the process of creating financing instruments which will facilitate enhanced participation of the private sector in infrastructure development. Addressing delegates and investors at the on-going Africa Infrastructure Financing Forum in Johannesburg, South Africa, today, Mr. Mutati said one of Zambia’s top priorities was to mobilise public-private-sector investment for mega projects such as the planned Batoka Power Station between Zambia and Zimbabwe which is expected to produce 2,400 MW of hydro power and enhance developmental integration in the region.

Chinese G in ESG: Governance Tilt Yields Strong Returns

In June 2017, WisdomTree (NASDAQ:WETF) and MSCI announced that they would be adding Chinese A shares to their indexes1 in order to broaden the investable universe to include Chinese-listed firms. MSCI will be adding China A shares in June 2018, whereas WisdomTree implemented these changes to two of its emerging market Indexes on August 11, 2017. While the inclusion of locally listed firms is certainly a milestone for Chinese capital markets, listing venue may be of secondary importance in evaluating the merits of a Chinese equity index.

Emerging Stocks at Multi-Year Highs ahead of Jackson Hole Meeting

Emerging market stocks rose to multi-year highs on Friday and were set to end the week up 2.5 percent, led by gains in Poland and China, ahead of a central bankers’ meeting that is not expected to rock the boat. MSCI’s benchmark emerging markets index was up 0.36 percent in morning trade to its highest since September 2014, with gains across the board in Asia and emerging Europe. Amongst the outperformers was Poland, up 4.7 percent for the week, its biggest weekly gain since late April, and trading at more than two-year highs.

Africa in Spotlight as TED Global Returns to Tanzania

A decade after it was first held in Arusha, TED Global returns to Africa next week to highlight Africa’s rich intellectual, artistic and problem-solving culture. It will also examine some of the key challenges the continent is facing and bring together some of the great minds finding ways to solve them. The  theme for the four-day event is “Builders. Truth-Tellers. Catalysts.”

Weekly Impact Investment Market Update: August 18, 2017

Posted on by MBC Strategic

Impact Investing & ESG

Socially-Responsible Investing: Earn Better Returns from Good Companies

Sustainable investing is an opportunity to make money and make a difference in the world. Many people still feel like they have to choose between their money and their values. They still think about the way sustainable investing used to be, and they could be missing out on some terrific new opportunities in this space. New environmental, social and governance (ESG) ratings for mutual funds give investors far more funds to choose from.

The State of Blended Finance

This working paper has been jointly produced by the Blended Finance Breakthrough Taskforce (BFBT) convened by the Business & Sustainable Development Commission, and Convergence. The State of Blended Finance aims to expand the evidence-base around the potential of blended finance to help close the UN Sustainable Development Goals (SDG) funding gap by summarizing blended finance deal trends and identifying ongoing blended finance-related efforts of key actors in the space. This report will inform the recommendations the BFBT intends to deliver to unlock systemic barriers in the blended finance ecosystem that are currently preventing the flow of mainstream capital into blended finance transactions at scale.

Which of the 17 U.N. Global Goals do Impact Investors Prefer

Goals as a guide to impact and opportunity. Yet little is known about which of the goals are getting the most attention. A new report from InvestorFlow, the fast-growing impact investor network, sheds some light on the question. The report, “Who, What, Where, and How: The First 205 Investors,” provides a snapshot of InvestorFlow members (which now number 212) and includes an analysis of their preferences among the U.N. goals.

United States & Europe

U.S. Employment Jumps by 209,000 Jobs in July, More than Expected

A closely watched report released by the Labor Department on Friday showed employment in the U.S. jumped by much more than anticipated in the month of July. The report said non-farm payroll employment surged up by 209,000 jobs in July after spiking by an upwardly revised 231,000 jobs in June.

Developing Economies

Tanzania: U.S., Tanzania Sign U.S.$225 Million Grant

The governments of United States and Tanzania on Friday signed a grant agreement of $225 million for implementation of various projects in education, health, agriculture and good governance. The agreement comes just a day after the US announced its plan to extend funding support in the next year for implementing various development projects in the country.

Gates Foundation to Spend over $300 Million in Tanzania in 2017

Bill Gates has told Reuters his foundation plans to spend more than $300 million in Tanzania this year on public health and poverty reduction programs. In an interview, the billionaire said aid was now being spent “in a smarter way” in some parts of the world.

Breaking the Code: How Women in Nigeria are Changing the Face of Tech

The Nigerian tech scene is booming. Last year, Lagos-based startup Andela received $24m (£18.5m) in funding from Mark Zuckerberg. In 2015, financial technology startup Paystack – one of the first Nigerian tech companies to be accepted into renowned California-based startup accelerator Y Combinator – secured approximately $1.3m in seed investment from international investors.

The Long Game: How Developing Countries can get Microfinance Right

Microfinance is often cited as an essential tool in helping women in particular rise from poverty. The theory goes that when you empower women to grow their businesses, they’re able to secure their families’ finances and create pathways toward education and improved quality of life for their children.

How to Decarbonize Indonesia and Achieve Low-Carbon Prosperity

Indonesia stands at a crossroads. It is the fourth-largest country in the world, with a population approaching that of the United States and a per-capita GDP nearly as large as China’s.  Like many countries in Southeast Asia, Indonesia is developing rapidly.  The manner in which Indonesia chooses to develop will have consequences for hundreds of millions of Indonesians as well as the developing countries of Southeast Asia and Africa that look to Indonesia as a model.