In Europe, decarbonization targets and net-zero portfolios have dominated the impact agenda in recent years. But ask an African entrepreneur what impact means and you’ll get a very different answer.
On the continent, impact isn’t a new concept. It’s not an imported framework. And it certainly isn’t limited to carbon emissions. Here, impact is rooted in development basics such as job creation, essential services and economic inclusion. These are not abstract ideals – they are day-to-day realities that determine whether families can eat, children can learn, and businesses can survive.
This kind of development must also be environmentally sustainable. Africa doesn’t need to follow a high-emission growth path just because others did. In fact, the continent is well-placed to skip entire phases of carbon-intensive industrialization. Just as Africa leapfrogged the traditional banking system through mobile money, it can make similar leaps in energy, food systems and infrastructure – but only if the right kind of capital shows up. What is needed is capital that is patient, transformational and aligned with Africa’s development and strategic priorities.
Building businesses that transform communities
For more than 20 years, Adenia Partners’ investments have focused on economic development as the primary driver of impact on the continent. Two pillars are fundamental to our approach.
- Majority ownership. Adenia has found that long-term, hands-on, majority ownership is the most effective way to build resilient businesses and generate sustainable impact. When we take control positions, we can install aligned leadership, implement value creation plans and embed ESG best practices across operations. These aren’t afterthoughts – they are built into the growth strategy.
- Embedding ESG to future-proof businesses. Using an ESG framework isn’t a reporting exercise – it’s a performance strategy that drives value and deepens resilience. For example, the introduction of specific commitments on gender equality and climate resilience can directly support business growth while future-proofing assets for the benefit of employees, communities and countries.
Investing in businesses that create jobs can have a significant impact. For example, in 2018 Adenia invested in the Kenyan retailer Quickmart. Since then the company has grown its workforce by 73%, with women now making up 41% of employees. That growth has radiated across its supply chain. A recent impact study calculated that for each job at Quickmart, at least three additional jobs were supported externally. Factoring in the economic effect of wages and salaries, Adenia’s investment in Quickmart supported the creation of nearly 104,000 indirect jobs.
Shifting the capital mix
To scale this kind of impact, more institutional money needs to move. Currently, 80% of capital for Sub-Saharan Africa funds comes from public funders. Just 18% is institutional. That’s starting to change, but not fast enough. Local LPs are increasingly exploring alternatives that can deliver both returns and measurable impact. AVCA’s 2024 African Private Capital Activity Report highlights a significant rise in commitments from African institutional investors, with pension funds, insurers, and corporates nearly quadrupling their contributions from $171 million in 2022 to $639 million in 2024.
The opportunity now is to tell the sustainable growth story in a way that accelerates this momentum. In the long run, economic growth and development need substantial domestic backing to propel the businesses that will underpin Africa’s future.
The road ahead
The continent’s young population — projected to reach 2.5 billion by 2050 — is not just a demographic trend, but a powerful engine of change. This generation is urbanizing fast, entering the workforce in growing numbers, and reshaping expectations around how business is done.
Youth-led innovation and activism are raising the bar for ESG performance, pushing companies to go beyond compliance and deliver real, lasting impact. They are demanding transparency on climate, human rights and inclusion — and holding leaders to account when standards fall short. These values-driven voices are setting a new standard for what responsible growth should look like in Africa. For investors, the message is clear: there are huge untapped opportunities to capitalize on. The future belongs to those who align with this momentum.
Ultimately, redefining impact in Africa means recognizing that in many ways development is the impact — and that investing in people, productivity and progress is the most transformative capital of our time. Impact in Africa is more than a carbon offset or a ticked SDG box. It’s the transformation that happens when a family gets a reliable income. When a woman can take a promotion and raise her kids. When a local company becomes a national leader. This is how you build economies from the ground up. This is impact – the African way.
Mokgadi Maunatlala is a partner at Adenia Partners.
