Inception meeting 3 May 2018
Agenda 1.30-1.45pm Welcome and introductions 1.45 – 2.05pm Private development and the NDP Elias Masilela 2.05-2.45pm Current landscape Bertha Centre and guest contributors 3.00-3.30pm Global initiatives in Impact Investing Sir Ronald Cohen 3.30-4.30pm Role and constitution of Task Force 4.30pm Cocktails and canapés
MARKET FRAMING HOW DO COMPANIES CONTRIBUTE TO IMPACT? Source: Impact Management Project, 2017 IMPACT INVESTING SOUTH AFRICA | MAY 2018 3
MARKET FRAMING HOW DO INVESTORS CONTRIBUTE TO IMPACT? + Signal that impact matters + Engage actively + Grow new or undersupplied capital markets + Provide flexible capital Source: Impact Management Project, 2017 IMPACT INVESTING SOUTH AFRICA | MAY 2018 4
IMPACT MANAGEMENT CONVENTION WHERE DO YOU FIT? IMPACT INVESTING SOUTH AFRICA | MAY 2018 5
LINK TO EXISTING TERMINOLOGY IMPACT INVESTING SOUTH AFRICA | MAY 2018 6
TASK FORCE PROCESS WHERE WE ARE WHERE WE WANT TO BE HOW WE WILL GET THERE DIAGNOSTIC GOAL SETTING ACTIONING Secretariat and research partners Task Force with support from Task Force and Working Groups with support from Task Force secretariat with support from secretariat IMPACT INVESTING SOUTH AFRICA | MAY 2018 7
WHERE WE ARE IMPACT INVESTING SOUTH AFRICA | MAY 2018 8
WHERE WE ARE MARKET MAP DEBT NON PROFITS IMPACT SECTORS IMPACT PURCHASERS CHANNELS OF CAPITAL FOR PROFITS SOURCES OF CAPITAL EQUITY DEMAND SUPPLY INTERMEDIATION IMPACT INVESTING SOUTH AFRICA | MAY 2018 9
DEMAND FOR IMPACT CAPITAL NATIONAL DEVELOPMENT PLAN AND UN SDG ALIGNED Theme Domains Themes Domains • Education Infrastructure Information & Communications Technology • • HIV/AIDS & Tuberculosis Water and Sanitation Maternal and Child Health Energy access and low-carbon energy • • 4. Infrastructure I. Health Non-Communicable Disease infrastructure • • Systems Strengthening • Transport & Logistics Affordable Housing & Spatial planning • • Health Early Learning & Grade R • 2. Education & Skills Sustainable Use 5. Ecosystems Services & • • Quality Learning Materials • Environmental Intelligence Systems Strengthening Biodiversity • Pollution and waste management Development • • Post-Secondary Education & Training 3. Agriculture & Food • Supporting Agrarian Transformation • Improving household food and nutrition 6. Social Protection Agricultural technologies Community Safety Improved food security Social Sector Sustainability Security • • Source: Investing in the SDGs, Schmidt-Traub, 2015 IMPACT INVESTING SOUTH AFRICA | MAY 2018 10
SUPPLY OF IMPACT CAPITAL SAVINGS AND INVESTMENT INDUSTRY 3500000 3000000 2500000 2000000 R’m 1500000 1000000 500000 0 Retirement funds Life companies CIS Short term insurance Sources of capital Source: BEEconomics Annual Transformation Survey,2017 IMPACT INVESTING SOUTH AFRICA | MAY 2018 11
SUPPLY OF IMPACT CAPITAL IMPACT INVESTMENT 3500000 3000000 2500000 2000000 R'm 1500000 1000000 500000 0 Retirement Life CIS Short term Impact DFI funds companies insurance Investment Capital sources vs impact investment Source: Barometer,2017 and GIIN, 2017 IMPACT INVESTING SOUTH AFRICA | MAY 2018 12
INTERMEDIATION INSTRUMENTS AND CHANNELS OF CAPITAL 760 out of 1200 funds employ an 57 out of 1200 funds employ a high Impact Investing for Impact strategy strategy 4.7% 63% Investing for Impact Barometer, 2017 IMPACT INVESTING SOUTH AFRICA | MAY 2018 13
ENVIRONMENT POLICY ENABLERS Policy initiative Market target Title Type of instrument Supply Demand Environment B-BBEE Legislation X Preferential procurement Procurement reform X Regulation 28 Pension reform X Section 12J VCC Tax incentive X Financial sector charter Voluntary code X King IV Voluntary code X FSB directive Reporting X IMPACT INVESTING SOUTH AFRICA | MAY 2018 14
WHERE WE WANT TO BE IMPACT INVESTING SOUTH AFRICA | MAY 2018 15
GOALS 5 Pension funds + 5 Startups DFIs Insurance companies 10% impact 10% Impact Leverage 4X businesses allocation private capital Top 30 JSE listed Impact Funds Foundations companies 10% funds high 10% Endowment Measure and impact allocation report impact 50 Fort G IMPACT INVESTING SOUTH AFRICA | MAY 2018 16
HOW WILL WE GET THERE IMPACT INVESTING SOUTH AFRICA | MAY 2018 17
DEMAND GROW PIPELINE OF INVESTABLE OPPORTUNITIES Support capacity building in profit-with-purpose/social enterprises • Develop sectoral or thematic strategies • Develop infrastructure pipeline • • Enhance municipal funding Support early stage businesses • IMPACT INVESTING SOUTH AFRICA | MAY 2018 18
INTERMEDIATION IMPROVE MATCH BETWEEN CAPITAL AND INVESTABLE OPPORTUNITIES Create Impact Investment Wholesaler • • Use technology to speed development Create more impact Funds • Develop Innovative finance products/vehicles/tools • Better match capital in early stage deals • IMPACT INVESTING SOUTH AFRICA | MAY 2018 19
SUPPLY INCREASE SUPPLY OF PRIVATE SECTOR IMPACT INVESTMENT CAPITAL Unlock institutional capital • Unlock retail capital • Align Foundation asset base with mission • Better utilise DFI capital to attract savings • • Plug gaps in early stage finance IMPACT INVESTING SOUTH AFRICA | MAY 2018 20
ENVIRONMENT CREATE ENABLING ENVIRONMENT TO FACILITATE DEPLOYMENT Standardise Impact Measurement • Create more transparency • Build strategic leadership • Use policy levers to unlock funding • IMPACT INVESTING SOUTH AFRICA | MAY 2018 21
EXISTING INITIATIVES OPPORTUNITIES FOR COLLABORATION/ALIGNMENT/ADVOCACY/SUPPORT Supply Demand Intermediation Environment Existing sector research eg Water Defining and mapping (NBI) - FSB/FSCA Directive Sustainable Policy - Sustainable Finance Initiative Municipal funding WG (NT) reporting - ASISA RI working group - ASISA CRISA WG - President’s Investment Envoys CEO Initiative Investment infrastructure - CEO Initiative DBSA Green bank + LAB Tertiary Funding - PIC VC Fund - Global Steering Group working Best practice exchange groups - Impact Management Project Education/ Advocacy IMPACT INVESTING SOUTH AFRICA | MAY 2018 22
ROLE OF IISA TASK FORCE IMPACT INVESTING SOUTH AFRICA | MAY 2018 23
THE ROLE OF THE IISA TIME FOR ACTION • The purpose of the South African National Task Force for Impact Investing (IISA) is to bring together leaders from across sectors to develop a clear and dynamic understanding of the local eco-system, obstacles to development and opportunities to remove these obstacles; and to create enabling infrastructure. The IISA will work with other actors from across sectors to identify priorities, scope initiatives, raise • awareness, advocate for development of the field and take other such steps as it determines appropriate ways to drive forward the growth of the impact investment market. IMPACT INVESTING SOUTH AFRICA | MAY 2018 24
IMPACT INVESTING SOUTH AFRICA IISA Task Force SECRETARIAT Working Working Working Working Working Group Group Group Group Group IMPACT INVESTING SOUTH AFRICA | MAY 2018 25
PROPOSED FUNCTIONS OF TASK FORCE Task Force TO BE RATIFIED AT FIRST PLENARY MEETING 1. Identify key levers that will accelerate growth of market 2. Join or head up appropriate Working Group 3. Generate report 4. Advocate for recommendations and build engagement across the market 5. Share learnings with international audience IMPACT INVESTING SOUTH AFRICA | MAY 2018 26
PROPOSED FUNCTIONS OF WORKING GROUP Working TO BE RATIFIED AT SECOND PLENARY MEETING Group 1. Develop strategy and operational plan to action Task Force recommendation 2. Launch intervention (if possible within timeframe) 3. Generate Working Group report to add to final report 4. Share learnings with international audience IMPACT INVESTING SOUTH AFRICA | MAY 2018 27
PROPOSED FUNCTIONS OF SECRETARIAT TO BE RATIFIED AT FIRST PLENARY MEETING SECRETARIAT 1. Support strategic process and intelligence gathering 2. Provide research/writing capacity + engage external stakeholders 3. Provide coordination and logistical support to Task Force and Working Groups 1. Coordinate public relations and media engagement 2. Link to international best practice IMPACT INVESTING SOUTH AFRICA | MAY 2018 28
TIMELINE AND WORK-PLAN TO BE RATIFIED AT FIRST PLENARY Responsibility Activities Timeline Secretariat IDENTIFY POTENTIAL TASKFORCE MEMBERS APRIL 2018 Secretariat INCEPTION MEETING MAY 2018 LAUNCH and 1 st PLENARY Secretariat JUNE 2018 Every 2 months for 6 months then IISA & Secretariat REGULAR MEETINGS every 3 months for 12 months IISA & Secretariat INTERIM REPORT DEC 2018 JAN 2019 WG & Secretariat REGULAR MEETINGS Every 2 months for 12 months IISA & Secretariat PRODUCE STRATEGY & REPORT DEC 2019 IMPACT INVESTING SOUTH AFRICA | MAY 2018 29
CONSTITUTION OF IISA TASK FORCE IMPACT INVESTING SOUTH AFRICA | MAY 2018 30
Recommend
More recommend
