Colombia is positioning itself as a impact ecosystem in the regionthus demonstrating its ability to mobilize private capital at scale and thereby support the solution of social and environmental challenges at the national level.
According to the latest report from the Aspen Network of Entrepreneurs for Development (ANDE); 16 investors reported having invested in Colombia US$67 million in companies in growth stage in sectors such as agriculture (58%), financial services (11%) and microfinance (9%), with expectations of financial return adjusted to market risk.
(Read: These would be the new limits of contributions to health and pension in Colombia).
In addition to the above, Colombia has also been a pioneer and benchmark in the implementation of pay-for-results schemes such as the Social Impact Bonds. Three have been launched in the country: Employing the Future, Cali Progresses with Employment and CREO.
“Impact investing represents a paradigm shift in investment decisions, identifying opportunities that find a balance between social and environmental impact and financial return, helping to solve the social and environmental challenges we face”, commented Juan Pacheco, manager of the GSG-NAB Colombia.
Likewise, the director added that “this model represents the possibility of closing the financing gap of the sustainable development objectives and the gap between the supply of private capital and the demand for investment.”
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