African impact investment solution launched

19th February 2021 By: Schalk Burger - Creamer Media Senior Contributing Editor

Sub-Saharan Africa fund manager African Alliance Asset Management and social investment manager Tshikululu Social Investments have launched an impact investment offering for Africa called Thrive Africa for global investors.

Impact investments are defined as investments that are designed to generate a measurable social and environmental impact alongside financial returns.

“Thrive Africa is a single-point solution for impact investment across sub-Saharan Africa and allows investors access to a range of economically attractive impacts with real returns in a low-yield global environment. Thrive Africa creates a platform to invest in a greener, more prosperous and inclusive Africa,” says African Alliance CEO Nicholas Piquito.

Given Africa’s challenges, impact investment provides a practical and promising approach to providing much-needed resources to assist with achieving the Sustainable Development Goals in Africa, including those focused on employment, infrastructure, energy, education, clean water, agriculture and others. Thrive Africa will deliver sound financial returns and measurable impact for international investors, he says.

This partnership leverages the strengths and experience of both companies that are working together on every deal and investment. Tshikululu will be responsible for social impact due diligence on all prospective deals, as well as impact measurement and management on all approved investments, while African Alliance will complete financial due diligence on all companies and track their financial performance.

“The first fund will provide loan finance to impact businesses across the continent working on financial inclusion, infrastructure and clean energy. By working with these companies, Thrive Africa will provide a platform for investors to be part of building a greener, more prosperous and inclusive Africa,” says Tshikululu CEO Tracey Henry.

African Alliance and Tshikululu are raising funds and engaging with various impact businesses. The partnership aims to make its first investments in the coming months.