Stakeholders Advocate for Legislative Measures to Enhance Investment Opportunities

Olufemi Adeyemi

Several stakeholders in the Nigerian impact investing sector have advocated for the implementation of legislation and policies aimed at promoting increased investment in underserved entities within the industry.

The call was made at the official launch of the Sustainable Systems for Research and Innovation Financing Project, funded by FCDO’s Research and Innovation Systems in Africa, took place on Tuesday in Lagos.

The primary objective of this initiative is to enhance the capabilities of enterprise support organizations, develop sustainable financing mechanisms for enterprise support and venture funds, foster effective connections between businesses, investors, and transaction advisors, and bolster local ecosystems, research, and institutional capacities.

At the event, Etemore Glover, the Chief Executive Officer of Impact Investors Foundation, the event’s organizer, stated that the foundation is collaborating with stakeholders to enhance understanding of the impact investing sector.

“We are also working with policymakers through several capacity-building programs to increase the knowledge and awareness of impact investment. I’m glad to say we are partnering with the Nigeria philanthropy office on impact investments and we will be driving for legislation for impact investments in Nigeria.”

In alignment with these sentiments, the CEO of Muazu Africa, Tolulope Makinwa-Adeniyi, expressed the need for a policy partner for social enterprises. This partnership would facilitate the pursuit of tax incentives to attract impact investors and increase capital inflow. It is crucial to recognize that this capital should not be limited to private sources; instead, a broader range of capital sources should be explored. Furthermore, it is essential to emphasize that the most compelling impact investments are not merely discovered but rather meticulously crafted through the collaborative efforts of all stakeholders, encompassing both private and public sectors.

“We are pushing for legislation, pushing for reforms. Once we have reforms, and regulations, figured out, it makes things easier for us to bridge the gap (between early-stage enterprises and capital).”

Muazu Africa facilitates access to capital, markets, and other essential resources for early-stage businesses.

The Director-General of the Small and Medium Enterprise Development Agency of Nigeria, Charles Odii, reaffirmed his dedication to supporting and empowering SMEs in Nigeria during his remarks.

He said, “The nano, micro small and medium enterprises are the backbone of our economy accounting for over 96 per cent of all businesses in Nigeria. For us at SMEDAN, we are committed to ensuring that these enterprises thrive and are committing to recognising the vital role that these small businesses play in our economic landscape and their contribution to our GDP.”

As defined by the United Nations, impact investing entails the allocation of funds to investments that yield quantifiable and advantageous social or environmental benefits in conjunction with a financial return on investment.

July 03, 2024