Innovative credit models in Africa – An FSD Africa and Intellecap PublicationPublished: July, 2020
An East Africa Guide: Angel Investing During a Time of CrisisPublished: May, 2020
South and Southeast Asia Investment Landscape Mapping | Water and Energy for Food (WE4F) Grand Challenge for DevelopmentPublished: April, 2020
Nudging The Investment Ecosystem By Incentivizing Impact
PUBLISHED: June, 2018
Opportunities in Incentivizing Impact in Financing Small and Growing Businesses in Developing & Emerging Markets
This paper is a summary of fresh ideas on how to channel more capital into impact investing and incentivize impact creation. Building on insights generated by experts at the BMZ hosted conference Financing Global Development – Leveraging Impact Investing for the SDGs, the paper furthers the conversation on Impact Measurement and Management, IMM 2.0, through brainstorming practical ideas and viewpoints in the impact investing value chain: those who provide capital, those who manage it, and those who receive it. This included close to 50 stakeholders, including fund managers, DFIs, intermediaries, entrepreneurs, governments, CSOs and others.
The discussion, conducted in the form of a ‘design lab’ by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Intellecap, and the Swiss Agency for Development and Cooperation (SDC), aims to start a conversation on how to maximize impact by channeling capital into small and growing businesses (SGBs) as a way to expedite achievement of SDGs (Sustainable Development Goals). During the session, industry leaders like FMO, Vox Capital, and Roots of Impact had shared case studies of good practices in incentivizing impact along the investment chain. This formed the basis of brainstorming on development of new ideas on innovative instruments that could nudge the ecosystem towards more actively pursuing and scaling impact.
The result is an analysis of the barriers in the impact investment value chain highlighted during the stakeholder conversations, and key insights on how to overcome them (for example, the need for transparency, standardization, leadership, etc.). In addition, the workshop collated a list of potential ‘wild ideas’ to like impact currency, impact rewards, impact index, online market places for impact auctioning, and a give-back distribution impact support system, designed to incentivize increased levels of investment along the value chain. The practical approaches suggested by stakeholders fit well with the existing impact measurement and monitoring frameworks like GIIN’s IRIS and Intellecap’s PRISM and hold the potential to guide impact capital more efficiently by leveraging good practices.
The Financial Lives of Government Employees – Potential of Digital Finance in Sierra Leone
PUBLISHED: July, 2018
This report documents findings from research on the financial lives of government employees in Sierra Leone, commissioned by the Government to People Payments Project – Building Digital Ecosystem funded by USAID. Intellecap supported UNCDF, Government of Sierra Leone and Bank of Sierra Leone for conducting the research.
There are 80,000 government employees in Sierra Leone who receive salaries digitally in their bank accounts. Insights about their financial lives can help build a viable business case for DFS to expand access to a wide range of financial services for underserved communities in Sierra Leone. Such insights can inform strategies and use cases that the UNCDF and the Government of Sierra Leone can develop to promote DFS in the country. The National Strategy for Financial Inclusion 2017 – 2020 also refers to the need to identify and digitize use cases that will lead to habitual usage, and achieve Sierra Leone’s commitments to the ‘Better Than Cash Alliance’.
Recognizing the need and opportunity, UNCDF supported the Financial Lives Survey of government employees who receive their salaries digitally in Sierra Leone. Intellecap designed the survey to understand how government employees utilize salaries transferred into their bank accounts, their awareness of and access to DFS, avenues to use them and their perceptions about financial services and digital financial transactions. This report contains insights from the survey about potential customers of DFS and recommendations on use cases that could be piloted as an initial step to improve DFS adoption in Sierra Leone.
Replication of Intellecap’s Ecosystem Based Approach in East Africa
PUBLISHED: July, 2018
Intellecap has sought to replicate its ecosystem-based approach to East Africa by bringing
together capital, knowledge and networks to support SGBs at two levels: (i) provide direct support
to SGBs in the form of acceleration, fund-raising, technical assistance, innovation transfer, and
market linkages, and (ii) discover and engage critical ecosystem players such as corporations
(both local and international), accelerators, other development sector players in supporting SGBs.
In the three-year period since the launch of our initiative to replicate our ecosystem-based
approach for accelerating entrepreneurship support to SGBs in East Africa, we have received
generous support not only from our funders, but also from a number of local and international stakeholders such as development institutions, private sector entities, and industry associations.
Over the last year, we have replicated our advocacy platform (Sankalp), angel investment network
(I3N) advisory services (consulting & investment banking), virtual incubation platform
(StartupWave) and impact measurement platform (PRISM) as envisaged at the beginning of our
programmatic support. The development and adaptation of StartupWave for East Africa has
resulted in over 450 sign-ups for our early stage enterprise support activities and partnerships with
over 30 incubators / accelerators. Similarly, PRISM, our impact measurement platform, has
garnered interest from a wide variety of players to measure the impact of their programs.
The Indian Social Enterprise Landscape StudyPUBLISHED: February, 2019READ MORE
The Global Landscape of Gender Lens InvestingPUBLISHED: February, 2019READ MORE
Innovative Health FInancing Models for Universal Health Coverage in KenyaPUBLISHED: February, 2019READ MORE
By Women – for Women: Building the Childcare Ecosystem in IndiaPUBLISHED: December, 2018READ MORE
Women Investing in Women: A Case for Gender Lens Investing in IndiaPUBLISHED: December, 2018READ MORE
SDG 6: Clean Water and SanitationPUBLISHED: November, 2018READ MORE
Beyond CSR To The Sanitation Economy Transformational Business & Investment Opportunities In IndiaPUBLISHED: October, 2018READ MORE
Digitizing Rural Value Chains in India: An Assessment of High Potential Opportunities to Increase Women’s Economic EmpowermentPUBLISHED: October, 2018READ MORE
Mainstreaming Innovative Health Financing Models In AfricaPUBLISHED: October, 2018READ MORE
The Landscape For Impact Investing In Southeast AsiaPUBLISHED: August, 2018READ MORE
The Indian Social Enterprise Landscape Study
PUBLISHED: February, 2019
India is one of the most dynamic social entrepreneurship environments globally with an estimated two million social enterprises. A vibrant start-up community as well as sustained interest and support from impact investors in India and the world, have resulted in hundreds of projects providing access to basic services and making dramatic changes in the lives of millions of Indians.
The Bertelsmann Foundation mandated Intellecap to undertake research and develop a report that provides insights into the social enterprise landscape in India. This report focuses on seven sectors based on their contribution to the Sustainable Development Goals. The sectors are Agriculture, Clean Energy, Education, Financial Inclusion, Water, Sanitation and Healthcare. The report starts with portrayal of the social entrepreneurship ecosystem with the key stakeholders and their focus areas. Then it deep dives into the seven chosen sectors, highlighting policy initiatives as well as start-ups working on meeting the SDGs in their sector. Finally, it exhibits the key trends for the sector, from both an entrepreneur’s and an impact investor’s perspective in the coming five to ten years. Since the research is conducted for a Germany-based foundation, the recommendation section focuses on how India and Germany can cooperate to create a mutually beneficial partnership. This report will help policymakers identify key interventions, help impact investors fine-tune their sectoral focus and help social entrepreneurs tweak their value propositions.
The Global Landscape of Gender Lens Investing
PUBLISHED: February, 2019
This report presents the global landscape of gender lens investing and examines the strategies used by gender lens investors across the globe. In doing so, it also examines ways in which businesses promote social and economic empowerment of women and correlates investment strategies to them. The report studies patterns and draws insights about the evolution of the gender lens investing strategies, the financial instruments used in adopting them and regions where they are implemented. It also highlights the challenges gender lens investors face in emerging geographies both in terms of raising capital and accessing an investible pipeline for the adoption of this strategy. It is notable that almost 70% of the funds using this strategy were seeded by women investors and/or raised funds from women. The report concludes with a discussion on the various aspects that need to be considered for promoting gender lens investing – especially in developing countries.
Innovative Health FInancing Models for Universal Health Coverage in Kenya
PUBLISHED: February, 2019
The whitepaper brings out the need for innovative health financing models in Kenya and how these models can work towards achievement of Universal Health Coverage. It highlights that broader approach to look beyond social impact bonds and how models like Advance Market Commitments, Asset Lease Financing can facilitate better delivery of primary healthcare services in Kenya. The white paper highlights that the Government should continue to significantly increase its budgets for health to deliver on the Country’s ambition to realize UHC, while it is tapping into other sources of financing to optimize the existing resources and bridge critical gaps.
By Women – for Women: Building the Childcare Ecosystem in India
PUBLISHED: December, 2018
This report is based on the core hypothesis that heightened workforce participation by women can usher in the dual benefits of spurring India’s economic growth and strengthening socioeconomic empowerment of women. With this backdrop, the report contrasts the low and declining levels of women workforce participation in the country and highlights the complex interplay of socioeconomic barriers and challenges that contribute to this phenomenon. The report thereafter, deep dives into the specific challenges associated with lack of access to quality childcare and examines how convenient and affordable access to childcare can help women transition from unpaid labor to paid employment and in turn, socioeconomic empowerment. The report takes stock of the current state of the childcare ecosystem in India and attempts to leverage the latent market opportunity. The report concludes by articulating recommendations for implementing an integrated three-pronged approach that combines building the required policy, skilling and entrepreneurship ecosystems for childcare.
This report will be a valuable resource for a range of ecosystem stakeholders including regulatory agencies and government policymakers, development agencies, foundations, private sector companies in the capacity of employers, incubators and accelerators. It is expected to inform policy formulation and intervention design targeted at strengthening the childcare ecosystem in India.
Women Investing in Women: A Case for Gender Lens Investing in India
PUBLISHED: December, 2018
Global evidence of a strong business case for investing in women and leveraging their potential as entrepreneurs is emerging. The ‘Women Investing in Women’ movement can play a significant role in addressing the systemic access to finance challenges that women entrepreneurs contend with. The report takes stock of the access to finance challenges experienced by women entrepreneurs in India and the resulting financing gap. It explores the potential of the ‘Women Investing in Women’ movement to address those challenges and enhance access to finance for women-led start-ups and small businesses. The core objective of the report is to identify a strategic roadmap for strengthening this movement in India to further the adoption of gender lens investing. This report will be a valuable resource for a range of ecosystem stakeholders including regulatory agencies and government policymakers, development agencies, foundations, private sector companies who aim to strengthen the women entrepreneurship ecosystem in India. It is expected to inform policy formulation and intervention design targeted at strengthening gender lens investing in India.
SDG 6: Clean Water and Sanitation
PUBLISHED: November, 2018
This report launched in partnership with the impact investor’s council (IIC) at an event called Prabhav in India, critically assesses the water and sanitation ecosystem for the gaps in capital support across the value chain. The report highlights the impact potential of WASH entrepreneurs and makes a case for impact investors to step in the WASH sector.
Beyond CSR To The Sanitation Economy Transformational Business & Investment Opportunities In India
PUBLISHED: October, 2018
The sustainable management of water and sanitation underpins wider efforts to end poverty and advance sustainable development. But, the world is not on track to reach Sustainable Development Goal 6 (SDG 6) on Water and Sanitation by the deadline set for 2030, says a new UN report (UN Water, 2018). The World Bank estimates that $1.14
trillion USD per year in overall global investment is needed to meet SDG targets 6.1 and 6.2, which represents a trillion dollar financing gap, and calls for a new financing paradigm that includes mobilising additional and innovative forms of domestic and international finance—a largely untapped financial resource to the sector (World Bank & UNICEF, 2017). Locally, it is estimated that India loses more than $106 billion USD per year of its GDP (> 5% of total) due to inadequate sanitation. It is widely believed that the private sector can and should fund a significant percentage of the investment gap. The private sector should not only be considered a funder but also an implementer of more efficient solutions. Companies are structured to maximiSe efficiency in order to remain profitable. As such, for companies to step into this implementation role, we must create the right enablers. This means focusing on at scale or scalable projects, establishing streamlined go-to-market models, and
creating favourable economics that attract commercial investment.
It is becoming inevitable that for sanitation systems to be sustainable and resilient for future generations, infrastructure needs to be cost recovering and services delivered in partnership with the private sector and commercial investors. The transition to the Sanitation Economy presents a transformational opportunity to
ensure a sustainable future for sanitation systems that can provide alternatives to the cost burdened systems of today, towards cost recovery and full of life-improving innovations, business and commercial investment opportunities – that could turn the outlook for SDG 6 around and ensure the resilience of India’s progress on sanitation access via the Swachh Bharat Mission. The transformation lies in the transition to significant opportunity for private sector innovation, new technologies, new sources of water, energy nutrients, and information
about human health and behaviour that will attract commercial investment and contribute to sustainable economic growth. In this model, the public sector benefits from private sector expertise, and the private sector sustainably engages in the development agenda through relevant, appropriate commercial constructs.
There is mounting evidence that leading businesses are championing new and exciting areas for business opportunity with a vision for a multi-billion dollar Sanitation Economy. To un-lock the these opportunities companies and investors need to take bold action for sanitation solutions that go beyond Corporate Social
Responsibility. We are calling on Indian businesses, entrepreneurs and investors to build the Sanitation Economy in India. Promoting high impact enterprises and achieving good returns on investments made will require sustainable on-the-ground partnerships with multiple stakeholders.
With this white paper we seek to take stock of the current state of corporate engagement in sanitation solutions, and build the case for businesses to move beyond CSR to un-lock core business opportunities that lie within sanitation systems and have been virtually untapped. Doing so will build an exciting universe of new investment
opportunities. India has the opportunity to lead the way, to address this market failure, and showcase the potential of the Sanitation Economy.
Digitizing Rural Value Chains in India: An Assessment of High Potential Opportunities to Increase Women’s Economic Empowerment
PUBLISHED: October, 2018
In our latest report, we highlight the role and impact of digital financial services (DFS) on economic empowerment of rural communities’ especially rural women in India through accelerated financial inclusion. The report has been released as a part of the Mobile Solutions Technical Assistance Program (mSTAR) initiative, supported by U.S. Agency for International Development and implemented by FHI 360. The initiative aims to create a digitally-enabled rural financial ecosystem to enhance farmers’ livelihoods through use of DFS. These solutions have the potential to drive down financial services delivery costs for customers and service providers, as well as offer services at greater convenience and scale, opening the door to economic empowerment and development.
Mainstreaming Innovative Health Financing Models In Africa
PUBLISHED: October, 2018
Why are we trapped in pilotitis for innovative financing models in Africa? What will it take for us to move to scale? Is it only about lack of resources or is it much more?
These are some of the questions that currently float in the healthcare ecosystem in Africa like an elephant in the room, which we are aware but often ignore.
It is becoming inevitable that for health financing interventions to be scalable, sustainable and resilient for future generations, infrastructure needs to be cost recovering, value driven and services delivered in partnership with the private sector and catalytic investment. The private sector should not only be considered a funder alone but also a co-implementer of health solutions.
Mainstreaming Innovative Health Financing Models in Africa provides a holistic approach based on key internal, external and environmental drivers that will facilitate scale and address the existing barriers to successful replication of such initiatives.
To know more, please write to firstname.lastname@example.org / email@example.com
The Landscape For Impact Investing In Southeast Asia
PUBLISHED: August, 2018
The Global Impact Investing Network (GIIN), in partnership with Intellecap Advisory Services, has published The Landscape for Impact Investing in Southeast Asia, the first-ever detailed analysis of impact investing activity across Southeast Asia. The report was generously supported by Investing in Women, an initiative of the Australian Government which is partnering with impact investors to grow impact investments in women owned and led SMEs in Southeast Asia. The Landscape for Impact Investing in Southeast Asia provides deep insight into the three most active markets in the region: Indonesia, Vietnam, and the Philippines, and a broader regional overview of the remaining eight countries, namely Brunei, Cambodia, East Timor, Laos, Malaysia, Myanmar, Singapore, and Thailand.
Abhilash Mudaliar, Director of Research at the GIIN, says, “The Asia Pacific region has been the fastest growing impact investing market worldwide over the past five years. This report shows why that’s not surprising. The countries across the region offer dynamic business environments with increasing entrepreneurial and investment activity focused on ensuring inclusive and sustainable economic development.”
The report outlines opportunities and challenges for impact investors and analyzes regulatory and economic factors that inform investment decisions in each country. Overall, the report sheds light on a dynamic and expanding regional impact investing market:
•Investment activity in Southeast Asia has increased over time. Since 2007, Private Impact Investors (PIIs) have deployed USD 904 million through 225 direct deals, and Development Finance Institutions (DFIs) have deployed USD 11.3 billion through 289 direct deals. For both sets of investors, investment activity has increased significantly in recent years.
•Indonesia, the Philippines, and Vietnam are the three largest markets in the region accounting for over 60% of capital deployed to date. However, each country in the region faces its own set of social and economic challenges, and presents investors with unique opportunities to develop strategies that both generate a financial return and have a positive impact.
•The top three impact investment sectors in the region have been financial services, energy, and manufacturing, accounting for over 80% of total capital deployed. As the market expands there is growing interest and activity in sectors such as education, healthcare, and workforce development.
On the findings, Mudaliar notes, “Historically, most capital for impact investing in the region has originated from investors in North America or Western Europe. A particularly promising trend is the growing participation of local investors – led by wealthy families and high net-worth individuals. We expect this trend to expand rapidly across all investor segments in the coming years.”
The report also finds that there is increasing awareness and uptake of gender lens investment (GLI) strategies in the region, which are investments that seek to address gender disparities and/or examine gender dynamics to inform better investment decisions. A growing number of investors have started developing GLI strategies in recent years, with USD 40 million deployed into more than 30 deals in Indonesia, the Philippines, and Vietnam alone.
Dr. Julia Newton-Howes, CEO of Investing in Women, argues, “This important research provides much needed market intelligence for Southeast Asia and reveals the growing appeal of impact investing in the region. Importantly, moving capital with a gender lens can unlock a significant under-served market and additional social impacts. Obviously, investing with a gender lens has a long way to go in the region, particularly with development finance. But we recognize that impact investing will not reach its full potential without incorporating an intentional gender lens and are proud to partner with the GIIN and Intellecap on this publication.”
The Landscape of Impact Investing in Southeast Asia report is based on interviews conducted with over 100 stakeholders, a thorough review of existing research, and aggregate analysis of over 500 impact investing transactions made since 2007.