1.0EWB Canadahttps://www.ewb.ca/en/anilkanjihttps://www.ewb.ca/en/author/anilkanji/rich600338<blockquote class="wp-embedded-content"><a href="https://www.ewb.ca/en/news-and-events/news/impact-investment-trap/">The Impact Investment Trap</a></blockquote> <script type='text/javascript'> <!--//--><![CDATA[//><!-- /*! This file is auto-generated */ !function(c,d){"use strict";var e=!1,n=!1;if(d.querySelector)if(c.addEventListener)e=!0;if(c.wp=c.wp||{},!c.wp.receiveEmbedMessage)if(c.wp.receiveEmbedMessage=function(e){var t=e.data;if(t)if(t.secret||t.message||t.value)if(!/[^a-zA-Z0-9]/.test(t.secret)){for(var r,a,i,s=d.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),n=d.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),o=0;o<n.length;o++)n[o].style.display="none";for(o=0;o<s.length;o++)if(r=s[o],e.source===r.contentWindow){if(r.removeAttribute("style"),"height"===t.message){if(1e3<(i=parseInt(t.value,10)))i=1e3;else if(~~i<200)i=200;r.height=i}if("link"===t.message)if(a=d.createElement("a"),i=d.createElement("a"),a.href=r.getAttribute("src"),i.href=t.value,i.host===a.host)if(d.activeElement===r)c.top.location.href=t.value}}},e)c.addEventListener("message",c.wp.receiveEmbedMessage,!1),d.addEventListener("DOMContentLoaded",t,!1),c.addEventListener("load",t,!1);function t(){if(!n){n=!0;for(var e,t,r=-1!==navigator.appVersion.indexOf("MSIE 10"),a=!!navigator.userAgent.match(/Trident.*rv:11\./),i=d.querySelectorAll("iframe.wp-embedded-content"),s=0;s<i.length;s++){if(!(e=i[s]).getAttribute("data-secret"))t=Math.random().toString(36).substr(2,10),e.src+="#?secret="+t,e.setAttribute("data-secret",t);if(r||a)(t=e.cloneNode(!0)).removeAttribute("security"),e.parentNode.replaceChild(t,e)}}}}(window,document); //--><!]]> </script><iframe sandbox="allow-scripts" security="restricted" src="https://www.ewb.ca/en/news-and-events/news/impact-investment-trap/embed/" width="600" height="338" title="“The Impact Investment Trap” — EWB Canada" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe>Development organisations need to be careful to not throw good money after bad investments. Since joining Engineers Without Borders Canada (EWB) in May, many discussions with my new colleagues have centered around the growing role of private sector impact investing, as a complementary approach to existing development efforts in emerging economies. The concept for EWB is relatively simple, in that, investments are made into promising local ventures, with the expectation of generating significant societal or environmental impact, alongside a modest financial return over time. The theory behind this approach, is that the value created, can be widely distributed in a much fairer and equitable manner, through social or environmental outcomes, rather than benefiting an exclusive minority by single mindedly delivering shareholder returns. Longer term, the positive outcomes are intended to indirectly spur opportunities beyond the initial investment, creating local economies that are self-perpetuating and more resilient to economic shocks. On paper, impact investments present an exciting opportunity for development organisations who are looking for an investment approach, that combines the best of private enterprise and philanthropic development. However, managing financial and social-enviro returns, while all the time creating value for the customer, brings a greater level of complexity, than experienced by the typical development project. The competing goals of these three perspectives creates a natural tension, requiring a greater level of trade-off and compromise, especially considering the scarcity of resources available in a developing economy. In turn, it is natural for a socially conscious development investor, to trade-off financial viability indefinitely, to achieve its social-enviro objectives. When this happens, the fundamental philosophy of the impact investment is undermined, and the venture simply reverts to yet another development project, without the added economic benefits that impact investing brings. Development organisations that involve themselves in the complex world of impact investing, must […]https://www.ewb.ca/wp-content/uploads/2018/04/Copy-of-Concordia_ChampagneParty1.jpg16001066