Investments that prioritize social and environmental benefits in developing countries
In a recent episode of the "Sustainable Investing" podcast by Börsen-Zeitung, Edda Schröder, a veteran in the field of Impact Investing with nearly 20 years of experience, expressed the need for a more global approach in investment strategies. Schröder, who works with Invest in Visions, believes that institutional clients tend to focus on Europe and America, often overlooking regions such as Africa.
Schröder argued that this narrow focus neglects promising opportunities in emerging markets. She believes that many institutions perceive emerging markets, particularly Africa, as being far away, a misconception she hopes to dispel.
To address this, Schröder's work with Invest in Visions includes partnerships with various entities to enable local monitoring of money flows. These partnerships include Sahel Capital (managing SEFAA), the Mastercard Foundation Africa Growth Fund via MEDA Mauritius, and Vision Invest (a Saudi Arabian infrastructure investor) supporting ARISE Integrated Industrial Platforms across multiple African countries.
Schröder's current project with Invest in Visions is the European Long-Term Investment Fund (Eltif), which she launched. The Eltif aims to support the operation of photovoltaic plants in Sub-Saharan Africa through loans.
Despite common prejudices about corruption in Africa, Schröder believes these perceptions should be challenged. She often hears the reaction, "Oh God, corruption!" when discussing investment in Africa, but she maintains that highly professional companies are operating in African countries.
Schröder also noted that large development organizations only start lending when amounts reach 5 to 10 million euros, leaving a gap that smaller companies often struggle to fill. To address this, the Eltif allows private individuals to invest in Private-Markets projects, providing a means for smaller investments to make a difference.
In the future, Schröder plans to step back from operational leadership at Invest in Visions, having sold most of her shares in the company in 2022. However, her work will continue to focus on regions often overlooked by others, as she strives to promote global investment in emerging markets.
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