WORLD ECONOMIC JOURNAL
EMERGING MARKETS
Where impact investing yields bigger returns and greater change
By McKinley Richards
McKinley Richards is Head of Impact at Sturgeon Capital . A graduate of international economics and global development , she has built her career around public , private and non-profit impact initiatives including the Page programme at the Canadian House of Commons , Enactus at the University of Ottawa , the Propel Impact Consulting Fellowship , and the Accelerate Prosperity accelerator in Kyrgyzstan .
T here ’ s a lot of buzz around “ impact investing .” The sector has experienced remarkable growth in recent years , capturing the attention of investors , entrepreneurs and philanthropists . Recognising the urgency and complexity of global challenges like poverty , inequality , and climate change , there is a growing global movement advocating for the need to allocate more capital to improving lives and the health of our planet . More than just a buzzword , impact investing holds the potential to play a historic role in reshaping the role of capital .
Despite its rapid growth and surge in popularity , impact investing evokes both promise and criticism . Sceptics raise concerns about “ green and impact washing ,” the lack of standardised and comparable measurement , the challenges around proving contribution to impact , and the trade-offs between financial and impact returns .
While these criticisms contribute to confusion and misunderstandings about what impact investing really means , the field continues to attract a wide variety of investors who seek to finance solutions across developed and emerging markets . At Sturgeon Capital , for example , we believe that investing in early-stage , high growth technology companies , can be a catalyst for meaningful transformation , particularly for low-and middle-income people in countries with nascent digital ecosystems .
Let us unpack the core meaning of impact investing and discuss its specifics in frontier and emerging markets while addressing some misconceptions .
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