Impact Investing Initiative
|AKUH – Karachi. Access to health care is a major challenge in Pakistan where only 1 percent of GDP goes to health and fewer than 2 out of 3 pregnant women see a doctor even once before giving birth.|
Our Approach to Impact Investing
The Aga Khan Development Network (AKDN) has decades of experience in mobilizing investment capital with long-term social impact − what is known as Impact Investing. For more than 50 years the Aga Khan Development Network has financed critical economic infrastructure across the developing world including banks, airlines, agro-processing plants, and media enterprises. The profits from these social enterprises are reinvested in other economic development initiatives.
Launched in 2011, Aga Khan Foundation U.S.A.’s (AKF USA) Impact Investing program grew directly from AKDN’s history of using innovative financing mechanisms to achieve social and economic development. AKDN has long embraced the discipline of investing for impact to increase the amount of capital available for social infrastructure projects. Impact Investing at AKF USA has three primary objectives:
• Mobilize investment capital for high-impact social enterprises within the AKDN
• Make mission-related investments in support of AKDN enterprises and/or beneficiaries
• Remove barriers that prevent the impact investing sector from scaling
AKF USA provides catalytic capital to AKDN social enterprises across Central and South Asia, East and West Africa, and the Middle East. Our portfolio includes:
First MicroFinance Bank of Afghanistan
First MicroFinance Bank of Afghanistan (FMFB-A) is the largest microfinance institution in Afghanistan, having made over 59,000 loans totaling over $116 million in 2012. The bank provides needed capital to the country’s vulnerable urban and rural populations through financial products such as Small and Medium Enterprise (SME) and housing loans. In December 2012, AKF USA became an 11 percent owner of FMFB-A alongside the German development bank - KfW, the International Finance Corporation, and the Aga Khan Agency for Microfinance. Learn more about this investment here.
Multi-Input Area Development
One of the largest global development alliances ever made by the U.S. Agency for International Development (USAID), the Multi-Input Area Development (MIAD) program combines two components: a set of grant-funded, community-based, socio-economic initiatives, and a financial vehicle that will invest in regional social enterprises to create jobs and drive economic growth. Over time, investments will provide returns to be partially channeled into a special social development fund for Badakhshan Province in northern Afghanistan, where poverty poses an extraordinary challenge. USAID and the AKDN committed over $30 million each to this project in an innovative combination of grants and investments, including a $10 million Mission Related Investment through AKF USA. Learn more about this program here.
Aga Khan University Hospital
The Aga Khan University Hospital (AKUH) owns and operates a hospital in Karachi whose proceeds fund world-class health treatment in 82 cities across Pakistan. In 2013 the U.S. Overseas Private Investment Corporation (OPIC) provided a $30 million loan facility, alongside $7.5 million in debt from AKF USA, for an expansion at AKUH to improve access to health care in Pakistan. The investment includes the construction of a new private wing; neonatal, medical, and pediatric intensive care units; and a center for innovation in medical education. Proceeds from this new construction will increase AKUH’s ability to provide health services and medical education, making high-quality health care more available for thousands of Pakistan’s poorest citizens. Learn more about this investment here.
Nairobi City Park Service Company
The Aga Khan Trust for Culture (AKTC), with its strong track record for revitalizing urban parks across Africa and Asia, is undertaking a plan to restore the Nairobi City Park. Launched by His Highness the Aga Khan with the Government of Kenya, the plan revitalizes 150 acres of forest cover in the city. This public-private partnership will preserve the site’s ecological integrity (including the city’s only remaining indigenous forest) while developing a botanical garden, open-air theater, restaurants, parking, and other facilities. Proceeds from the park facilities will be used both for park maintenance and to provide benefits to the local community including enterprise training and clean water. AKF USA is receiving support from donors and impact investors to make the revitalized park a reality. Learn more about this project here and watch a video about it here.
Partnering With Us on Impact Investing
AKF USA is continually identifying co-investment and partnership opportunities with other like-minded impact investors. We specialize in AKDN projects that accelerate financially sustainable and high-impact social investments in healthcare, higher and secondary education, rural development, microfinance and urban rejuvenation. If you would like more information on our investments or how to partner with us, please contact: firstname.lastname@example.org. You can read more about our work by downloading our flyer and through our blog posts:
• 05.17.2014 - Improving Healthcare in Pakistan through Impact Investing
• 05.13.2013 - Speeding Forward: Canada and Impact Investment
• 01.26.2013 - AKF USA Makes Its First Mission Related Investment in Afghanistan
• 11.08.2012 - CEO Notes: Creating an Atmosphere for Investing in Social Good
• 10.25.2012 - SOCAP12 and a New Market for Social Investment
• 09.19.2012 - A Relationship Blooms at the Social Capital Markets Conference
• 08.02.2012 - Measuring Impact for Investment in Social Development: Can Metrics Help Alleviate Poverty?
AKF USA is a member of the Aspen Network of Development Entrepreneurs and founding Global Impact Investing Network member.