CANBERRA — In South, Southeast Asia, and the Pacific region, opportunities for impact investment are growing rapidly — and experts say Australia can leverage this growth, if investors’ perceptions of risk can be addressed.
“When it comes to impact investing, perceived risk can overwhelm real risk. Part of where we are on the journey is still to understand the risk as the market matures and investments mature.”— Simba Marekera, executive director, Brightlight Group
In changing these perceptions, donors including the U.S. Agency for International Development and the Department of Foreign Affairs and Trade are playing a role in building the foundations for investment, including taking risks investors may not be willing to take. With this, they hope to build an evidence base to help investors understand the true risks, as well as the value of investing in developing countries and social enterprises.