Convening on Blending Finance for Social Investment in Nigeria:

Opportunities and Challenges

Oriental Hotels, Lagos, Nigeria, October 10, 2019

About The IIF 2nd Annual Convening 2019

The IIF Annual 2nd Annual Convening on Blending Finance for Social Investments in Nigeria: Opportunities and Challenges, is designed to bring key actors from diverse sectors to discuss the opportunities and challenges in expanding the blended finance market in the country with a view to reducing the barriers to increasing private sector participation in social investments and financing of SDGs implementation in the county. The convening is also important to enable catalytic capital holders in Nigeria to better vision where their capital can be used most effectively to achieve their goals – whether to demonstrate proof of concept for a new business model or catalyze commercial capital. The event will hold at the Oriental Hotel, Lagos on Thursday, October 10, 2019.

The convening is being organized by the Impact Investors Foundation (IIF), a nonprofit organization founded through a partnership involving Bank of Industry (BOI), African Capital Alliance (ACA), Business Day Media Ltd, Dalberg Development Advisors and Ford Foundation, with the overarching goal of accelerating the growth and excellence of impact investing in Nigeria.

Objectives of the Convening

The objectives of the convening are to:

  • Increase stakeholders’ awareness of blended finance as a strategy for increasing private sector contribution in the financing and delivery of SDGs in Nigeria and the critical role of government, development finance and philanthropic.
  • Enable increased flow of and better deployment of catalytic capital in structuring of blended finance deals for social investments in Nigeria.
  • Promote commitments of stakeholders to enhance the effectiveness of blended finance and creating a community of actors interested in monitoring progress.

Session Descriptions

The daylong event is divided into three broad segments: Two moderated panel sessions in the morning (details below), meetup by key actors in impact investing in Nigeria in the afternoon and a dinner/award ceremony in the evening to honor individuals and corporates who have contributed significantly to the growth of impact investing in Nigeria.

Panel Sessions:

Panel 1: Role of Government, DFIs and Philanthropy in De-risking Social Investments in Nigeria: This session is designed to sensitize participants (especially government and foundations) on the critical role MDAs, DFIs and corporate and private philanthropic foundations can play in providing concessionary capital needed to spur and unlock private sector participation in social investments in areas such as education, health, housing, energy, infrastructure and other SDGs in Nigeria.

Key Questions

The landscape:

Who is doing what and where in the deployment of catalytic capital to incentivize private sector participation on social investments social investment in Nigeria?

Entry Point

Where should an MDA or philanthropic Foundation wishing to participate in the blended finance market begin from and what sort of framework does the agency need in order to be effective?

Gauging impact

What tools are being used by catalytic capital providers to measure social returns and how can measurement frameworks will be designed to meet the needs of the full range of impact investing stakeholders?

Targeting

What type of social enterprises should catalytic capital providers pay more attention to (early stage, mid-stage or advance enterprises) in an emerging market like Nigeria?

Challenges and Risks

What sort of challenges and risks should new actors in blended finance market (public, private and philanthropy sectors) expect from inception?

Panel 2: Structuring Blended Finance Vehicles: Approaches that Work.

Session Description: Given the diversity of actors across the risk-return spectrum that are involved in the impact investing industry, a great opportunity exists for collaboration to mobilize significant capital toward positive impact. However, the process of designing a specific blended finance approach is not without challenges, given that investors’ motivations are varied and driven by a variety of factors such as risk-return preferences, impact targets, and fiduciary responsibilities. This session will examine approaches that have worked in structuring blended finance vehicles to meet the goals of a variety of actors involved in social impact investments.

Key Questions include

  • When do you use blended finance?
  • How do you ensure alignment amongst stakeholders regarding impact expectations in blended finance deals?
  • How will they be measured?
  • What specific type(s) of risk needs to be mitigated in order to attract capital required?
  • What internal policies and procedures must be in place to provide catalytic capital? Is there precedent to justify calculations for the level of catalytic capital required?
  • How do you design blended finance structures with minimal transaction costs and to scale the use of blended finance?
  • What challenges and risks should stakeholders new to blended finance transaction expect?

Afternoon Session - The IIF Deal Summit

The IIF Deal Summit is a special session where high-impact social enterprises get the opportunity to pitch their  businesses to investors from across Nigeria.

The objectives of the session are to:

  • Expose Social Enterprises to a range of impact investors
  • Create understanding for social entrepreneurs around the criteria and expectations of institutional investors;
  • Better understand capital gaps in the market through participation and the ‘pipeline challenge’ faced by investors
  • Match investors with potential investees

The IIF Deal Summit is done in collaboration with Acumen and the event is strictly by invitation.

Evening Session - The IIF Dinner and Award Ceremony

The IIF dinner and award ceremony is an evening to honor and recognise a leading social enterprise and an investor within the Nigerian impact investing space who have made significant impact by providing solutions through their innovations, products, services or investments. Through this award, IIF will reward entities who are able to set high standards through their business activities and investment decisions which further underscores the possibility of “doing good while doing well.”.

More about IIF

The Impact Investors Foundation (IIF) is a nonprofit organization founded by a partnership comprising Bank of Industry (BOI), African Capital Alliance (ACA), BusinessDay Media Ltd and Ford Foundation. The mission of the alliance is to work with other stakeholders to reduce the barriers to impact investing in Nigeria so that more investors can be brought on board in finding solutions to the country’s major social and economic problems and opportunities. Our approaches include convening critical actors in government, private and social sectors; promoting innovative investment approaches and tools; building evidence on what works and doesn’t work; and leadership and collective action.