Fighting grand corruption with impact investing

April 12, 2021

Peace Justice and Strong Institutions

We are privileged to be involved in another insightful Impact for Breakfast session, this time joined by our partners Restitution Impact – an impact fund manager drawing on litigation financing techniques to bring enforcement action against corrupt actors, reversing illicit financial flows, returning stolen state patrimony, and reversing the effects of corruption globally. At Innovest Advisory we have seen how as the impact investing field grows and matures a number of new and exciting investment thematics have arisen. This session will examine the game-changing and frontier impact investing thematic of anti-corruption investing. 

Stolen assets represent a significant barrier to development, hindering developing countries’ ability to progress towards attaining the UN Sustainable Development Goals. To give some scale to this issue, illicit capital flows from Africa surpass US$90 billion annually, equating up to 85% of all annual FDI and ODI inflows to the continent. Reversing this illegal capital flight could bridge half of Africa’s SDG financing gap. 

However,  asset recovery cases are complex and costly, and thus are prohibitive for a developing country sovereign state to pursue.  As a result,  stolen assets are rarely recovered and returned, depriving developing countries of much needed resources for investment into their basic development requirements such as health, education and infrastructure.

In this discussion we will discuss the current challenges in the fight against grand corruption, and explore how impact investment has the potential to finance scalable solutions to recover and return stolen assets and thereby generate long-term positive impact in developing countries in a managed process that maximises the benefits to the people of their countries. Through such anti-corruption models, impact investors can target the end of the impunity of corrupt state actors globally.

Join us on April 15th 2021 at 10am for this session to learn more about this issue and how you may be able to get involved.