Reports relevant to the South African impact investing eco-system and mainstream financial markets
2020
Report:
Impact Investing South Africa Overview

“The world is on the brink of a revolution in how we solve society’s toughest problems. The force capable of driving this revolution is ‘social impact investing’, which harnesses entrepreneurship, innovation and capital to power social improvement. By bringing a third dimension – impact – to the 20th century capital market dimensions of risk and return, impact investing has the potential to transform our ability to build a better society for all”

In this groundbreaking report, the Social Impact Investment Taskforce, illuminate the enabling role that governments and the financial sector can play in unleashing investment for solving social problems and furthermore, the Taskforce makes recommendations for building a thriving social impact investing market.

12 June 2020
Letter to the President:
Post-Covid Recommendations from Impact Investing South Africa

We are in the midst of unprecedented change, on a global scale. The pandemic has exposed cracks in our economic system that, along with the imminent climate crisis, will force us to rethink how we allocate resources and account for our impact on people and planet. We will need to move deeper and permanently into a paradigm of partnered inclusive, sustainable growth if we are going to survive and thrive. The question is how. There is a financial toolbox that has emerged over the last 10+ years that will not only help us to address the short-term issues but serve as a foundation for long term restructuring. This toolbox is known as impact investing.

12 May 2020
Article:
Impact investing is essential and SA needs to run with it

Investments made with the intention to generate positive, measurable social and environmental impacts are gathering momentum in SA.

15 March 2020
2019
Article:
SA turns spotlight on impact investing ahead of 2019 Investment Conference

Industry leaders have expressed concern about the ruling party’s proposal to impose a form of-prescribed assets on the country’s investment community – a topic that is expected to provoke some heated debate at the upcoming Impact Investment Forum, which will take place on Tuesday, 5 November 2019, ahead of the South Africa Investment Conference.

4 November 2019
2018
Article:
Impact investing needs business schools to get on board

After the global financial crisis, a new way of looking at business and finance – which integrates social and environmental impact more effectively – emerged.

12 December 2018
2017
Report:
Fiduciary duty in the 21st century: South Africa Roadmap (2017)

Generation Foundation, PRI, UNEP Finance Initiative

This South Africa roadmap was developed through industry consultation and sets out recommendations to ensure that the modern interpretation of fiduciary duty is reflected in the practice of South African institutional investors . It provides recommendations on how to ensure institutional investors integrate ESG factors into their investment decisions. It also sets the South African capital market in a broader international context as regulators and investors respond to a rapidly-changing investment environment.

4 August 2017
Report:
The Empowerment Endowment (2017)

Intellidex

This report estimates the size of the endowments that have been created by 35 of the largest 100 JSE listed companies that have established trusts and foundations through BEE deals. Of a total of R51.6bn worth of charitable value created, R32.6bn has been invested in PBOs that will likely spend 10% on philanthropic activities on an a perpetual annual basis. 67% of the funds have an eductaional focus.

29 June 2017
Report:
Annual Impact Investor Survey 2017

Global Impact Investing Network (GIIN)

The Annual Impact Investor Survey by the GIIN, provides a descriptive overview of the dynamic and evolving impact investment market. In its seventh edition, the survey received responses from the greatest number ever – 209 impact investing organisation with an estimated $114 billion in assets under management.

17 May 2017
Report:
Global Entrepreneurship Monitor: Can small business survive in South Africa? (2016/17)

Mike Herrington, Penny Kew and Alesimo Mwanga

SMEs make an outsized contribution to job creation, economic growth and equitable income distribution. Recognising the urgency required in addressing the structural and policy reform required to create an enabling environment for SMMEs, this survey provides insights into both private and public initiatives in entrepreneurship development. The report identifies key challenges and offers a number of recommendations that can be used to inform policy decisions and stimulate entrepreneurial activity.

15 May 2017
Report:
An Analysis of the Risks and Opportunities Inherent in PDI Beneficiary Trusts as Vehicles of Broad Based Black Economic Empowerment – Part 2

Tshikululu Social Investments

The inclusion of Trust vehicles in order to broaden the base of ownership in BBBEE transactions is becoming the norm, certainly in the bigger deals being concluded. The report gives examples of the typology of trust vehicles utilised by private business to further their development objectives in compliance with the BBBEE mandate.

31 March 2017
Report:
An Analysis of the Risks and Opportunities Inherent in PDI Beneficiary Trusts as Vehicles of Broad Based Black Economic Empowerment – Part 1

Tshikululu Social Investments

This study investigates the role and effectiveness of community trusts in Black Economic Empowerment transactions. The report considers the history, evolving roles and broader impacts on society of community trusts and similar entities, while problematising the institutional role that trusts have assumed or are expected to assume in development and social welfare in South Africa. PDI beneficiary trusts have been utilised by the private sector as a mechanism to meet their transformations obligations through BBBEE as well as to contribute directly to development and social welfare. The study offers a theoretical framework for investigating the utility of PDI beneficiary trusts to social transformation and development through BEE transactions, and also develops workable models for the successful operation of these trusts.

31 March 2017
Report:
A Knowledge Brief of South Africa’s Incubator and Accelerator Landscape (ANDE)

The South African Business Development Services Provider (BDSP) space is active and growing. In an effort to deepen understanding of the incubator and accelerator landscape in South Africa, ANDE hosted a series of breakfast roundtables in Johannesburg and Cape Town in 2017 and 2018. Discussions focused on gathering qualitative information regarding key activities and services, programme structure and funding sources, as well as challenges and opportunities faced by BDSPs. This document presents an overview of the key findings from the roundtables and provides recommendations for further research.

1 January 2017
Report:
Standard on Unclaimed Assets

Association for Savings and Investment South Africa (ASISA)

This Standard sets requirements for members on the treatment of unclaimed assets and is intended to assist ASISA members in achieving the outcomes of Treating Customers Fairly (TCF). The standard aims to enhance tracing procedures, disclosure to customers, provide clarity on the principles applied in determining the assumed investment return and to achieve consistent treatment, as far as practically possible, of unclaimed assets by ASISA member companies regardless of product categories.

1 January 2017
Report:
South Africa Entrepreneurial Ecosystem Map (2017)

Aspen Network of Development Entrepreneurs (ANDE)

The Entrepreneurial Ecosystem map is an infographic that profiles all organisations that support entrepreneurial development in South Africa identifying the direct finance providers and capacity development providers.

1 January 2017
Report:
Fruitful Partnerships: A journal of activity and trends in Southern African private equity (2017)

Southern African Venture Capital and Private Equity Association (SAVC)

A series of thought pieces in PE sector reflecting the opinion of a spectrum of LPs and fund managers. A range of investment mandates and approaches are presented and analysed, with regards to topics such as fund structuring, fund raising, collaboration and exits.

1 January 2017
Report:
FTSE/JSE Responsible Investment Index Series (2017)

FTSE Russell

The FTSE/JSE Responsible Investing Index Series is comprised of the FTSE/JSE Responsible Investment Index and FTSE/JSE Responsible Investment Top 30 Index. This document sets out the ground rules for the management and construction of the FTSE/JSE Responsible Index Series. The index series has been designed to identify South African companies with leading environmental, social and governance practices.

1 January 2017
Report:
Private Equity Industry Survey (2017)

Southern African Venture Capital and Private Equity Association (SAVCA)

The survey aims to provide a comprehensive and deeper understanding of the trends in the private equity industry and has done so since 1999. The survey found that funds under management grew from R158.8 billion in 2015 to R171.8 billion in 2016 reflective of a growing industry and an increased interest from investors in the private equity asset class in Southern Africa. This however represented a significant drop compared to the amount of R27.5bn raised in 2015. 70% of the funds raised in 2016 are for early stage investments.

1 January 2017
Report:
The Africa and Middle East Alternative Finance Benchmarking Report (2017)

Cambridge Centre for Alternative Finance (CCAF)

The rapid growth of crowdfunding globally has led some in the development sector to see the crowd as a potential solution to the funding challenges innovative businesses face when they try to serve the ‘bottom of the pyramid. The study systematically and comprehensively reports the size and growth of crowdfunding and peer-to-peer lending markets in Africa and the Middle East. The study details the types of online alternative finance, ranging from reward-based crowdfunding to peer-to-peer business lending, it captures the industry volumes in key markets, documents the growth of alternative funding for start-ups and SMEs, analyses the latest market trends and explores the changing regulatory landscape in Africa and the Middle East.

1 January 2017
Report:
The Entrepreneurial Ecosystem in South Africa: A strategy for global partnership (2017)

Global Entrepreneurship and Development Institute (GEDI)

Based on the analysis of ecosystem actors, both in the private and public sectors and the issues and bottlenecks present, GEDI presents a strategy for action for investors, stakeholders, policy actors in directing their resources towards generating the greatest impact for entrepreneurs in the country. The report offers a national entrepreneurship policy framework based on the strengths and weaknesses and causal factors that define the entrepreneurship ecosystem. Some of the recommendations emanating from the GEDI policy tool were (1) continue to build on the work already underway towards eliminating the dual economy by increasing start-up skills, improving education and training for all South Africans as well as remove most regulations that hinder the starting of a business; (2) improve the financing of SME and entrepreneurs by engaging in bank reform, mobile banking and crowd funding for all South Africans; and (3) build global brands and further integrate South Africa into the digital revolution by making digital access available to all.

1 January 2017
2016
Report:
The Landscape for Impact Investing in Southern Africa (2016)

Global Impact Investing Network (GIIN)

This report offers an analysis of political and economic factors that may inform and influence investment decisions in the Southern African region. The study provides a landscape of the impact investing market in 12 Southern African countries, capturing trends, challenges and opportunities for both social enterprises and impact investors. The report maps impact investing activity by development finance institutions (DFIs), non-DFI investors, social enterprises, government institutions and other ecosystem players.

25 February 2016
Report:
A guide to finance for social enterprises (2016)

Greater Capital

This guide to is aimed at Social Enterprises that need to access funding to grow and scale their businesses. It is designed to assist small and medium sized social enterprises to navigate the myriad of different funding mechanisms and channels and gives practical advice on how to prepare for the application and due diligence processes.

1 January 2016
Report:
The African Investing for Impact Barometer (2016)

Bertha Centre for Social Innovation and Entrepreneurship

The African Investing for Impact (AIFI) Barometer provides a snapshot of the growing investing for impact (IFI) market and strategies implemented by fund managers in East, West and Southern Africa. The 2016 edition has expanded its coverage of Africa’s formal investment markets as it strives to objectively depict the spectrum of publicly reported investments, which seek to combine financial returns and positive impact on society and the environment. It also provides a scoring system to gauge impact of IFI strategies employed.

1 January 2016
Report:
Innovative Finance in Africa Review (2016)

Bertha Centre for Social Innovation and Entrepreneurship

This review showcases outstanding models and practices making up the innovative finance ecosystem across Africa. The review highlights specific impact themes and business models as well as walking the reader through new financials tools and products with the potential to shift the system.

1 January 2016
Report:
King IV Report on Corporate Governance in South Africa 2016

The King Report on Corporate Governance is a booklet of guidelines for the governance structures and operation of companies in South Africa. The fourth revision was published in 2016. The code is non-legislative and is based on principles and practices pertaining to leadership, sutainability and good corporate citizenship. All JSE companies are required to comply with the principles and The Institute of Directors in Southern Africa (IoDSA) is the custodian of the King reports and the holder of their copyrights.

1 January 2016
Report:
New Frontiers: Perceptions of and allocations to private equity by Southern African pension funds (2016)

Southern African Venture Capital and Private Equity Association (SAVCA)

This reports presents the results of an anonymous online survey conducted by SAVCA of the top 100 pension funds in South Africa and of the major pension funds in the Southern African Development Community (SADC) region. Of the 39 respondents, 14 South African funds implemented private equity programmes. The survey observed that defined contribution and standalone funds are less likely to allocate funds for private equity investment; size is not singular determinant of the appetite for private equity investment; pension funds with an existing private equity mandate and which are already invested into the asset class are most likely to consider an increased allocation through new investment partnerships and are also more familiar with the process of private equity investment; and the main impediments to private equity investment are liquidity concerns and limited familiarity with the asset class amongst pension fund managers, principal officers and trustees.

1 January 2016
Report:
Greening the Banking System: Experiences from the Sustainable Banking Network

International Finance Corporation (IFC)

This input paper reviews the experience of the Sustainable Banking Network (SBN), a group of banking regulators and associations from 24 emerging markets focused on enabling frameworks for environmentally and socially sustainable lending. From this, it identifies continuing barriers to sustainable banking, as well as critical success factors in the efforts to date. It closes with some options for consideration by the G20 Green Finance Study Group.

1 January 2016
Report:
Design of a Sustainable Financial System: Experience and Lessons from South Africa

United Nations Environmental Programme, 2016

The inquiry was initiated to advance policy options to improve the financial system’s effectiveness in mobilizing capital towards a green and inclusive economy. This study outlines South Africa’s financial system and the challenges and innovations in aligning it to sustainable development.

1 January 2016
Report:
Form and Function: A View of Financial and Operational Practices of South African Private Philanthropic Foundations (2016)

GastrowBloch Philanthropies

GastrowBloch Philanthropies conducted interviews with 21 philanthropic foundations with the objective of providing existing foundations and individuals who wished to establish foundations with information relating to common practice amongst South African foundations in relation to governance, endowments, financial management and grant-making. Of the 21 foundations only 67% had permanently invested capital amounting to R12.57bn. The remaining foundations distribute annually replenished donations.

1 January 2016
Report:
The Corporate Social Investment (CSI) Handbook, 19th edition (2016)

Trialogue

Trialogue CSI Handbook provides insights into the spending patterns of corporates with an emphasis on the use of charitable contributions generated as a result of BEE legislation. The most recent recent edition explores in-depth how business might incorporate the United Nations Sustainable Development Goals (SDGs) in order to attain a more holistic impact in their development efforts.

1 January 2016
2015
Report:
The Value of BEE Deals (2015)

Intellidex

The report makes a study of the value created for BEE beneficiaries by the top 100 listed companies on the Johannesburg Stock Exchange (JSE). The study observed that empowerment deals conducted since 2000 have generated R317bn in total value attributable to beneficiaries, of which R52bn (16%) is attributable to staff schemes, R196bn (62%) to strategic investment partners and R69bn (22%) to broadbased community schemes.

15 June 2015
Report:
A review of the local community requirements in South Africa’s renewable energy procurement programme (2015)

WWF South Africa

The Renewable Energy Independent Power Producer Procurement (REIPPP) programme obliges companies – within a 50km radius of a project site – to contribute towards local community development through socio-economic and enterprise development, local ownership and local job creation. This report sheds light on the initial implementation experiences of the REIPPP and explores emerging evidence of local community development schemes established by the renewable energy industry and proposes steps to overcome emerging challenges. The report estimates, based on the 64 REIPPP projects awarded in the first three procurement rounds, approximately R1.17 billion will be available for local community development through socio-economic development, enterprise development and local ownership requirements over the next 20 years.

1 January 2015
2014
Report:
Impact Investment: The Invisible Heart of the Market: Harnessing the power of entrepreneurship, innovation and capital for public good (2014)

Social Impact Investment Taskforce, UK

“The world is on the brink of a revolution in how we solve society’s toughest problems. The force capable of driving this revolution is ‘social impact investing’, which harnesses entrepreneurship, innovation and capital to power social improvement. By bringing a third dimension – impact – to the 20th century capital market dimensions of risk and return, impact investing has the potential to transform our ability to build a better society for all”

In this groundbreaking report, the Social Impact Investment Taskforce, illuminate the enabling role that governments and the financial sector can play in unleashing investment for solving social problems and furthermore, the Taskforce makes recommendations for building a thriving social impact investing market.

1 January 2014
2013
Report:
Responsible Investment and Ownership: A guide for pension funds in South Africa (2013)

WWF South Africa

This guide is aimed at pension fund trustees and principal officers to assist them to respond effectively to the business case for responsible investment, with specific reference to Regulation 28 of the South African Pension Fund Act and other complementary frameworks such as the Code for Responsible Investing in South Africa (CRISA). The majority of pension funds are at the early stages of responsible investment implementation and Regulation 28 does not include detailed guidance on how the mandate must be met. While the guide is not prescriptive, it gives trustees guidance on how best to give effect to responsible investment, as enabled in Regulation 28.

1 July 2013
Report:
Unlocking the potential of South Africa’s technological innovation: A literature review

Technology Innovation Agency (TIA) and SiMODiSA

This high-level literature review outlines the funding landscape that supports the development of technology enterprises. The reports also provides profiles of the top 20 performing countries based on their startup entrepreneurship ecosystems, with the aim that South Africa identify key enablers and emulate the processes that made those ecosystems successful and apply them to its own nascent and emerging local startup ecosystem.

1 January 2013
Report:
The Economic Impact of Venture Capital and Private Equity in South Africa (2013)

Southern African Venture Capital and Private Equity Association (SAVCA)

The research aims to assess the perceived and measurable impact of private equity and venture capital in South Africa. Relying on the assumption that the contribution of private equity is best measured by analysing the economic performance of investee companies, the report charts the impact of private equity investment on a number of different areas: growth before and after investment; innovation and new product development; job creation; corporate governance structures; and Black Economic Empowerment (BEE). Some of the findings of the research provide strong evidence that private equity firms create value and employment in both the domestic and international markets with firms investing significantly in capital expenditure and research and development.

1 January 2013