Catalysing Sustainable Growth: Insights from the AVPA Conference.

Earlier this month, the African Venture Philanthropy Alliance (AVPA) hosted an inaugural in-person forum in Nairobi to mark six years of enabling social investment in Africa. Themed ‘Catalysing Africa’s Sustainable Growth’, the 2024 AVPA Conference attracted more than 350 impact leaders and stakeholders. Across 44 impactful sessions, over 100 dynamic speakers and vibrant partner events, there were valuable opportunities to connect and learn from each other. I was delighted to attend and participate.

Eating risk for breakfast

On Day One, I moderated a panel,"Eating Risk for Breakfast: Seeding and Scaling Innovation through Catalytic Capital," featuring Charles Coustan from the MacArthur Foundation, Chris Maranga from Acumen, and Dr Emmeline Skinner from the UK’s Foreign, Commonwealth & Development Office (FCDO). The panel drew a large and engaged audience, and shared valuable insights on the future of social impact investing.

A key takeaway was the importance of being transparent about both successes and failures, through which investors not only strengthen their own practices but also contribute to a more resilient and informed investment ecosystem. This builds trust among new investors and reduces the likelihood of repeating past mistakes, ultimately strengthening the market.

We also addressed market distortion and balancing impact with viability. Catalytic capital, while transformative, can sometimes distort markets if deployed without a clear path to sustainability. Dr Skinner cautioned against excessive reliance on grants, which can unintentionally create dependence rather than resilience. Instead, structuring catalytic deals with phased reductions in support encourages ventures to transition towards financial independence. 

The panellists agreed that catalytic capital should aim to foster long-term viability, ensuring that early support leads to sustainable growth rather than prolonged dependency. Thus, grants, especially those earmarked for for-profit companies, should be used to catalyse development, not sustain it.

Advancing gender-smart capital at scale 

On Day Two, I participated in a masterclass from 2X Global, focused on unlocking the potential of gender-smart investing through the newly launched 2X Certification and the 2X Challenge.

GIF was delighted to join the 2X Challenge in June this year as one of the first non-DFIs to participate.This multilateral coalition of public and private sector investors has pledged to invest US$20 billion in women’s economic empowerment over the next three years. Fellow signatories Audrey Obara from Swedfund International, and Christophe de Montille from Beyond Capital Ventures also spoke on the panel.

I shared insights into the tangible benefits of investing in gender-diverse teams and solutions specifically targeted at women’s empowerment and improved access to essential goods and services. Research consistently shows that women are not only prudent savers but also responsible borrowers, making them reliable financial partners and excellent clients for financial services. According to a study by the World Bank, women in developing countries are 25% more likely than men to save for emergencies, demonstrating foresight in managing household finances. 

Similarly, the International Finance Corporation (IFC) has found that women have lower default rates than men, which can be attributed to their emphasis on financial stability and household welfare. This data enables new businesses to tailor financial products and services to meet women’s specific needs, benefiting both the businesses and female consumers. 

Strengthening the African Impact ecosystem

The 2024 APVA Conference gave social investors across the Continuum of Capital - grants, debt or equity, and other impact investing stakeholders - an opportunity to connect and learn from each other. We explored bold solutions to catalyse Africa’s sustainable growth, forged new connections and shared learnings with the intention of accelerating development progress.