GSG backed initiative unlocks new investments to support the world’s most vulnerable
- Partners of the World Economic Forum’s Humanitarian and Resilience Investing Initiative announce over 50 commitments that will boost impact investment and could unlock over $15 billion.
- The initiative also launches new collaborations that will drive purpose-driven investment in frontier markets, and scale action at the intersection of climate and humanitarian impact.
- Initiative partners call on other organizations to join their new impact-linked finance and peace-positive investment initiatives.
The World Economic Forum’s Humanitarian and Resilience Investing (HRI) Initiative announced today that significant progress has been made in the international effort to mobilize $10 billion to enable 1,000 businesses in frontier markets to scale their operations by 2030. Over 40 partners announced more than 50 commitments to boost impact investment in frontier markets that have the potential to unlock over $15 billion in commercial and catalytic capital.
These commitments follow a Call to Action, announced in September 2023, which aims to respond to the systemic challenges faced by 2 billion people globally living in poverty and insecurity and increase the resilience of at-risk and crisis-hit communities.
The HRI Initiative is also launching three new collaborative actions that will build and mature selected frontier markets, scale action at the intersection of climate and humanitarian impact, and cultivate co-investment in purpose-driven businesses in frontier markets. Other key commitments include the launch of new funds and financing mechanisms, updated strategies and roadmaps, programmes to help build enabling market conditions, efforts to drive further market transparency, and initiatives to develop and harmonize new impact measurement methodologies.
“GSG is delighted to join this collective action. It signifies a transformative movement towards sustainable impact investment. By unlocking investments in frontier markets and addressing the intersection of climate change and humanitarian needs, we are setting a new paradigm in impact investment, creating resilient, empowered communities and driving meaningful change where it matters most.” said Cliff Prior, CEO, Global Steering Group for Impact Investing (GSG).
”Sustainable change and measurable impact can only be built through collective and concerted action by key private and public stakeholders. Market driven solutions can strengthen local economies, respond to the systemic challenges faced by communities living in extreme poverty, and reduce aid dependency.” said Peter Maurer, Co-Chair of the HRI Initiative, and GSG Ambassador.
Actions launched by the initiative include:
Building and maturing selecting frontier markets
Spearheaded by the governments of Kenya and the United States as well as major organizations – including the African Development Bank (AFDB), Bamboo Capital Partners, CrossBoundary, IKEA Foundation, ODI and World Bank Group – are coming together to support favourable market conditions to pilot a new approach to help scale a pipeline of businesses in northern Kenya. The HRI Initiative, together with its Call to Action partners, plans to implement this approach in nine additional frontier markets by 2030.
Scaling action at the intersection of climate and humanitarian impact
The HRI Initiative and the Forum’s Giving to Amplify Earth Action (GAEA) are announcing a new multistakeholder partnership to convene private-public-philanthropic partnerships to support and scale projects addressing the impacts of the global climate and nature crisis on vulnerable communities. Supporting organizations include Acumen, Bamboo Capital Partners, International Committee of the Red Cross (ICRC), International Rescue Committee (IRC), Private Infrastructure Development Group (PIDG) and United Nations High Commission for Refugees (UNHCR).
Cultivating co-investment in purpose-driven businesses
The HRI Initiative is partnering with AVCA – The African Private Capital Association, Collaborative for Frontier Finance (CFF), elea Foundation for Ethics in Globalization, Global Impact Investing Network (GIIN), Global Private Capital Association (GPCA), Global Steering Group for Impact Investment (GSG) and KOIS and to launch a new area of work facilitating collaboration along the continuum of impact investments. These organizations together reach over 1,000 capital providers globally investing in impact.
The full list of commitments can be found here.
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