Dealflow | December 13, 2018

World’s poorest countries to get dedicated impact fund

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, December 12 – Bamboo Capital and the U.N. Capital Development Fund are building an investment fund to increase the impact capital flow to the world’s 47 lowest-income countries.

The world’s so-called “Least Developed Countries” account for about 13% of the world’s population and 35% of the extreme poor.  They are least resilient to both economic and environmental shocks. Financially, LDCs are heavily dependent international aid as a funding source—one which has been declining in recent years.

How to attract private capital to the poorest countries

The vehicle aims to attract both “concessional” and commercial capital to reach markets that are often deemed by the private markets as too risky or lacking in opportunity. It will be used to invest in small businesses, financial service providers, and infrastructure projects that are aligned to the Sustainable Development Goals.

“By utilising a blended finance approach in our investment vehicle, we will be able to take greater risks,” Bamboo Capital’s Jean-Philippe de Schrevel said.

Specifics of the vehicle’s structure or target size have not been announced.