The African Venture Philanthropy Alliance’s (AVPA) study, Strengthening impact investment in Africa: Supply of capital, provides an updated landscape analysis of the supply of impact investment capital in Africa. Published in May 2026, the report builds on the 2020 baseline to identify shifts in the structure, instruments and regional distribution of capital.
The study analyses structural gaps, emerging opportunities and the evolving roles of philanthropic, blended and commercial investors with the intention of strengthening the supply and effectiveness of social investment. It draws on data collected from 25 organisations across Eastern, Southern, and Western Africa, including foundations, DFIs, fund managers, intermediaries and non-financial support institutions.
Report findings in short
- Africa’s impact investment ecosystem remains dominated by philanthropic capital but is gradually transitioning toward blended and market-based models.
- The total capital mapped is $36 million, of which East Africa accounts for 60%, Pan-African investments 25%, West Africa 8%, and multi- region initiatives 6%.
- Sectoral allocation is led by energy (32%), food and agriculture (26%), healthcare and infrastructure (11% each) and water, financial services and education (5% each). The report noted a decisive shift toward climate-linked productive sectors that combine social impact with measurable financial returns.
- Philanthropic actors remain the backbone of capital mobilisation, contributing around $30 million of total investment. Intermediaries contribute about $5.25 million and commercial actors less than $1 million.
- Technical assistance is the primary enabler of investment. The majority of investment occurs at the project level (63%), compared to 32% at the organisational level. Although this bias contributes to accountability, it limits institutional capacity building and long-term sustainability.
The study situates its findings within the broader financing context in Africa, marked by declining aid flows, shrinking fiscal space and increasing demand for innovative funding models. Pointing to the widened annual sustainable development goal (SDG) financing gap of about $200 billion, the report identifies blended finance as the most viable pathway to close this gap. It cites successful models such as the SDG Namibia One Fund and AfricaGoGreen, which demonstrate how layered concessional and commercial tranches can mobilise institutional investors.
The study notes, however, the hindrances to capital flow and ecosystem coherence, including data fragmentation, uneven regional participation and limited deal pipelines. It calls for structural reforms that institutionalise blended finance frameworks, develop local-currency vehicles and embed technical assistance within capital deployment as the path towards a more cohesive, less donor-dependent ecosystem.
The report proposes seven actions to shift to a more coordinated market architecture:
- Establish a continental impact investment registry and data observatory to standardise metrics, track deals and align with global frameworks.
- Transform AVPA’s deal share platform into a regional pipeline facility with impact scoring systems and co-investment matching.
- Integrate technical assistance within financing structures to strengthen institutional capacity alongside capital deployment.
- Develop regional guarantee and local-currency financing vehicles in partnership with development finance institutions and domestic pension funds.
- Implement a regional balance strategy to expand origination and capacity building in southern and francophone Africa.
- Launch an AVPA blended finance playbook outlining templates, risk layers and exit pathways for members.
- Establish an impact evidence lab within AVPA to conduct evaluations, generate sector intelligence and reinforce Africa’s global voice in impact finance.
Read the full report: Landscape Analysis Study on “Strengthening Impact Investment in Africa: Supply of Capital”
