Feasibility study on mobilising German private retail investment towards the SDGs
The German development agency GIZ commissioned IPC, along with its impact investment advisory partner Innpact, to study the feasibility of establishing a new technical assistance (TA) facility. The proposed new TA facility would focus on mobilising German private retail investment for Sustainable Development Goal (SDG)-aligned purposes in developing markets, particularly in Sub-Saharan Africa. The aim of the study was to first understand and define the level of contribution of German retail investment towards SDG-aligned goals, whether in the form of microfinance funds, sustainable investment funds, or crowdfunding platforms. Based on the results of this analysis, GIZ wished to see whether it would be feasible to establish a TA facility to promote and increase the level of investment by German retail investors for SDG-related purposes.
The IPC team conducted the feasibility study using a combination of market data, key informant interviews with relevant market actors (such as banks, asset managers, investment advisers, crowd investing platforms, foundations and other related institutions), and an analysis of the German retail investment regulatory framework. The team provided to GIZ an estimation of potential market size and key constraints, along with a rationale, requirements and theory of change for the establishment of a market enhancement facility to act as a catalyst for improving the mobilisation of German retail investments.