Impact Investing: a trip to Rwanda!

shutterstock_143382055_small2

BiD Network strives to fulfill its mission in helping investors gain access to capital. We achieve this through our matchmaking services and different events aimed at connecting entrepreneurs with angel/impact investors.

One of such events is the Impact Investment trip to Rwanda from November 8th to November 13th. Two of our Investor Matchmakers will be joined by a group of angel investors and visit several local entrepreneurs. The overarching goal of this trip is to close the physical gap between entrepreneurs in emerging markets and angel investors. For a week long, investors will be able to meet entrepreneurs in Rwanda and see what it is like to do business in East Africa. Investors will also be able to soak up the local culture and travel alongside like-minded change-makers.

Rwanda: Land of Promise

 

Rwanda, known for its tragic recent history, has remarkably developed over the past decade and is nowadays one of the continent’s most well-developed countries. The economy has strengthened, with per-capita GDP (PPP) estimated at $1,644.310 in 2014, compared with $416 in 1994. Its breathtaking scenery, the warmth and kindness of the people and rising business opportunities make it a place worthwhile visiting.

The Rwandan genocide had a major influence on the already fragile social and economic status. Thanks to large amounts of monetary aid by: western nations, the IMF, and World Bank – the post-conflict GDP growth rates have been around the 8% annually. Rwanda actually had a staggering 13% GDP growth two years after the genocide, in 1996.

Why Impact Investing?

 

“The bottom line is that impact is being generated by the underlying operating entity. As investors, our job is to understand the underlying business model and determine whether we are prepared to align our capital to support it”  

Rwanda is the perfect location to begin or continue an angel investors’ impact investment portfolio. But what is impact investing? The definition developed by the Global Impact Investing Network (GIIN), the closest thing this field has to a trade association, provides a good starting point: “Impact investments are investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return”. This differs from a grant or other forms of capital investments towards small and medium sized enterprises (SME’s).

 

We, here at BiD Network, are excited about the upcoming Impact Investment Trip to Rwanda. For more information about the trip please go here.