This chapter focuses on impact investing from a developing markets perspective. It begins with the definition of impact investing and a description of the key elements and core characteristics that differentiate impact investing from other types of ‘responsible investing’ such as Socially Responsible Investing, Sustainable Investing and Philanthropic Investing. The chapter presents an overview of the financial return spectrum, sources of capital, investment instruments and structures and the impact investment activity spectrum. It introduces readers to the main actors in the impact investing ecosystem, social impact measurement and tracking as well as the opportunities and challenges of impact investing in developing markets such as Sub-Saharan Africa (SSA). The chapter concludes with recommendations for both Impact-first and Finance-first investors to work jointly in the allocation of capital to achieve scale in delivering sustainable financial return while addressing social and environmental issues in SSA.
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