The world direct investment flows will gradually go down by 40% in June 2020 as a result of coronavirus pandemic. This is, according to UNCTAD, which is the UN’s trade body. The body also said that acquisition and mergers, and investments had decreased b over 50%.
However, some sectors that have remained resilient are housing, education, renewable energy projects, and healthcare. A research done in March and April showed that 57% of the investors would still go on with their investment schedules. It also showed that 16% of these investors would add more capital for investing.
Another report by the Global Impact Investing Network showed that investors who will reduce their investments stand at 20%, while the uncertain ones are at 7%. The above studies have shown a true reflection of various investment decisions.
Covid-19 has posed a significant problem in investing. The economic state is so hard to accommodate more funding. This has greatly affected the progress of various projects, while other investors are looking for their fellow investors to increase their financial power. There was an investment partnership that was started by GIIN in May this year with the purpose of allowing various investors to come together and talk about Covid-19 social-economic challenges.
More than 97 investors, who comprise various foundations, asset managers, and family businesses, have shown their stake in forming a partnership. Different projects which are expected to be worth $500,000 are expected to be implemented by a group of investors from the US in the following few months. Eight organizations involved in impact investing will receive grants that amount to $752,000 in July from Tipping Top Fund.
While talking to OBG, Amma Gyampo, the founding member of Impact Investing Ghana, said that this is the ideal time to speed impact investing and show its value during this challenging time. There are various sectors that are greatly benefiting from the impact of investors through funding. Examples include education, health, logistics, technology, agriculture, and retail.
During an interview with OBG, Tokunboh Ishmael, the co-founder of Nigerian Alitheia Capital, said that more emphasis would be on environmental and social projects during this pandemic time, which benefits more people.
He also added that they had done all they can to ensure that the public acquires essential services and products with ease. Ishmael continued to say that it is only the provision of essential services and commodities that will help the entire economy grow. He called upon private investors to put more emphasis on their enterprises to help resolve this challenge.