The Sustainable Development Goals, established by the United Nations(Opens in a new window), guide our commitment at Oxano Capital(Opens in a new window). We adhere to SDGs 1, 2, 3, 8 & 9. These specific goals focus on eradicating poverty, ensuring food security and sustainable agriculture, promoting good health and well-being, fostering decent work and economic growth, and building resilient infrastructure, industry and innovation. By aligning our investments with these goals, we aim to contribute to a more sustainable and equitable future for all.
The UNDP Africa Investment Insights Report showsInvestment Opportunity Areas (IOAs) across Sub-Saharan Africa and highlights trends over the past years to identify how impactful investments can be made by adhering to the SDGs. On the next figure, the IOAs are shown across different priority sectors and regions. On the industry level, Agricultural Products is the most prominent target industry with 22% of the IOAs situated in this industry, followed by Waste Management (8%).
Figure 1, IOAs by priority sectors and region
Investments with support to the SDGs reaches high ROIs while also achieving financial and social benefits. Across the regions, most IOAs expect an Internal Rate of Return (IRR) 8 range of 15-20% (27%) or a Return on Investment (ROI) 9 range of 15-20% (28%), followed by the 20-25% range (26% of IOAs for IRR and 28% of IOAs for ROI). For IOAs indicating Gross Profit Margins (GPM)10, most IOAs expect above 25% (50%), followed by 5-10% (25%).
The report stresses how shifting just 3.7% of the $100 trillion of global assets under management by institutional investors each year would enable us to achieve the SDGs. It also makes the case for public-private partnerships in support of impactful investments, as it establishes that most investment opportunities require risk-sharing arrangements and public financing support to be successful, especially for last mile populations and marginalized communities.Finally, UNDP calls on investors to use these insights to identify impactful business opportunities across Africa’s economies, and work with the in-depth data of the SDG for greater impact.
At Oxano, we have heeded the UNDP's call to action andunderstand the importance of leveraging public-private partnerships and utilizing the in-depth data of the SDGs to achieve greater impact for last mile populations and marginalized communities. We invite other investors to join us in this effort, as we work towards sustainable development and positive social change in the region. Let's collaborate and make a difference together.
References:
The UNDP Africa Investment Insights Report (2022) retrieved from https://www.undp.org/africa/investment-insights(Opens in a new window)