The Covid-19 pandemic threatens already fragile social and economic systems and could potentially impact the lives of up to 2 billion people. Based on estimates by the World Bank, it would push 88-115 million people into extreme poverty in 2020, reversing decades of continuous progress. Covid-19 has already highlighted our global connectedness making it abundantly clear that our socioeconomic systems are only as robust as the most vulnerable links in the chain.
We are likely to witness a reduction of aid budgets as governments face economic pressures, increasing demand to supplement donor funds and public investments with private return-seeking capital, to fill the $2.5 trillion Sustainable Development Goals (SDG) annual financing gap.[…]
Despite the economic damage wrought by the pandemic, we are confident that there is ample investor capital ready to fill this financing gap. 72% of impact investors surveyed by the Global Impact Investing Network (GIIN) expect to maintain or expand their portfolios in response to COVID-19.[…]
Humanitarian and Resilience Investing is an emerging impact investing theme focused on leveraging private capital to directly benefit people and communities in fragile contexts by investing in local resilience and markets. Transactions in this space typically involve blending return-seeking investor capital with de-risking concessional capital to make interventions investable, in partnership with humanitarian and development actors to ensure that capital is deployed responsibly and efficiently in order to create measurable impact.[…]
This nascent investment theme is being championed by the Humanitarian and Resilience Investing Initiative; co-chaired by the World Economic Forum, Credit Suisse, ICRC, the Netherlands, the World Bank Group, and supported by Boston Consulting Group. The initiative brings together investors and corporates with humanitarian and development organizations who work together to identify pioneering projects that catalyze investor capital and strengthen collaboration across different communities.[…]