Egypt’s Ministry of International Cooperation, together with the United Nations Development Programme (UNDP) are set to collaborate on Sustainable Development Goal (SDG) Impact Investing.
The two sides will explore joint efforts to promote this initiative, covering Environmental, Social and Governance (ESG) principles, and the alignment of investor capital with the SDGs.
As part of this broader scope of work, the UNDP and the Egyptian private equity Catalyst Private Equity (CPE) will put in practice an impact measurement towards the SDGs of private sector enterprises and private investments.
The initiative responds to growing interest from investors and businesses alike in making a positive impact on society beyond pure financial returns.
Globally, it is estimated that an additional $2.4trn a year will be needed to achieve the SDGs by 2030. A large portion of this financing will need to come from the private sector, which is increasingly investing in businesses that contribute positively to the SDGs. This comes in addition to being financially as profitable or more compared to mainstream investments.
“Egypt is committed to the principles of stakeholder capitalism, formulating inclusive economic policies to incorporate all societal actors and aligning them towards a common purpose including environmental, social and governance (ESG) indicators,” said Egypt’s Minister of International Cooperation Rania Al-Mashat, “Creating sustainable value creation through impact investing plays a fundamental role in achieving positive measurable outcomes for the society in addition to adequate financial returns.”
To jump-start practices in Egypt, the UNDP and CPE partnership will apply globally recognised impact measurement principles, standards and tools to a concrete pool of investment-ready small- and medium-sized enterprises (SMEs). This will help them measure and manage their impact with a practical impact measurement manual and a user-friendly digital platform.
“The UNDP is keen to help trigger investment that has positive impact towards the SDGs and UNDP has been promoting Impact Investment and impact management at the global level and in Egypt since 2018,” according to Randa Aboul-Hosn, UNDP Resident Representative in Egypt, “This partnership is a first step towards putting in practice global SDG Impact standards in the nascent impact business ecosystem in Egypt.”
Aboul-Hosn also said that the collaboration is a first practical step, but that the path being embarked upon is long and important.
She noted that it links credibly and quantitatively the intended impact of businesses with their management decisions and their results, and creates a powerful feedback loop that harnesses the size and energy of the private sector.