Though investment patterns in Ghana and Africa over the past 15 years, shows a large chunk of foreign direct investments, mounting to $50 billion US dollars in the beginning of 2013, has been realized, the communities where the investors have been operating still remain undeveloped.
Consequently the GIMPA Center for Impact Investing (GCII) has challenged investors and potential ones to come up with business innovations that do not focus on financing specific projects in the extractive industries but design a strategy that has the social impact that trickle down to the masses.
At a breakfast meeting, the Dean of GIMPA School of Business, Professor Samuel K Bonsu who introduced the activities of GCII, hinted that the flow of foreign private capital now exceeds the disbursements of official development assistance (ODA). He revealed that the growth of investment has increased from $14 billion in 2002 to $67 billion in 2012, making the flow of foreign private capital to multiply by five times in the last 10 years.
Professor Bonsu however urged private investors to create positive social impact beyond their financial return rather than their traditional forms of investments that tend to focus on oil, gas and mining.
To him, the GCII will advocate that investors consciously incorporate premium on solving social and environmental challenges as an integral part of their business model, placing it on pact with their desire to achieve their financial return.
Speaking to Peacefmonline.com in an interview, Professor Samuel K Bonsu averred that “it is this vision of impact investment and potential for socio-economic transformation that motivates GIMPA and its sponsors to set up GCII…..poverty is rife in Africa; the vast majority of investments benefit only a few people, mostly our political and corrupt bureaucrats”.
“GCII is a non-profit organization currently supported by the Rockefeller Foundation and the Tony Elumelu Foundation (TEF) and the Venture Capital Trust Fund and GIMPA officially launched the center…..the center is open for business and will be happy to work with anyone who shares this vision,” he said.