1. Understanding the Opportunity for Impact Investing in Africa June 5, 2013

2. Our Panelists Niamani Mutima Africa Grantmakers’ Affinity Group Daryn Dodson Wallace Global Fund Scott Wallace Wallace Global Fund Cynthia Muller Arabella Advisors

3. Impact investing uses return- seeking investments to help accomplish social and environmental goals.

4. Industry Timeline 1790 1968 1980-2000 2007 2010+ Franklin establishes 1st fund PRIs included in Tax Code Socially Responsible Investing Movement Global Financial Crisis Development of market infrastructure 4

5. Projected market size of Impact Investing 5 Impact Investing 5-10 year projection ~$650 billion Philanthropy (U.S. only) ~$300 billion Total Investing ~$60 trillion Impact Investing in 2013 ~$9 billion

6. Mapping the Impact Investing Industry 6 USA CHINA (HONG KONG) NETHERLANDS UK INDIA BRAZIL SOUTH AFRICA KENYA MEXICO GERMANY SINGAPORE AUSTRALIA The Sterling Group

7. Cynthia Muller Director, Impact Investing Arabella Advisors

8. Impact Investing Commercial Investors Foundations High Net Worth Individuals Development Institutions & Banks Where Does the Capital Come From?

9. Source: F.B. Heron Foundation Mission-Related Investing Continuum Impact Investment Continuum Below Market-RateHybridMarket-Rate Grant Support Equity Subordinated Loans Senior Loans CashGuaranteesCash Fixed Income Public Equity Private Equity Higher Risk Lower Risk Lower Risk Higher Risk Below Market-Rate Investments (Impact First) Market-Rate Investments (Finance First)

10. Mission Related Investments Investing with social or environmental screens Market rate expected return “Double or Triple Bottom Line Investing” The 95% Program Related Investments IRS Tax Code – can be counted toward 5% payout Below Market Returns Foundation Impact Investing

11. Impact Investing in Africa Size of African impact investing market between $300-400 million per year Sub-Saharan Africa represents a large area of growth with the continent Kenya and South Africa represent large areas of interest and growth Challenges around transparency and general uncertainty about business and political environment

12. SOUTH AFRICA KENYA GHANA Examples of Impact Investing in Practice

13. Scott Wallace Co-chair Wallace Global Fund

14. Background on Wallace Global Fund and Impact Investing WGF progressive family philanthropy Henry A. Wallace Programs in environment, democracy, women’s human rights, media and corporate power Funds globally and domestically Work in Africa History of supporting women’s human rights in Africa, reproductive rights and abandonment of FGM/C Support for civil society in Southern Africa Example: Zimbabwe Alliance, donor collaborative

15. Mission Related Investing Commitment to breaking down the wall between 95-5% 2009-2011 – Process begins to align program and assets New investment committee, advisors and managers, with substantial savings in overall management cost to Fund 2012 first year of performance – 11.8% beating benchmarks Screening goal is 100% positive + negative screens, currently over 90% Example of Environment Program alignment – fossil fuels and climate solutions/clean tech 99% fossil fuel free 5% + in clean tech

16. Portfolio Screening System

17. Impact Investing 5% of fund minimum for impact investments, will increase Early interest: Shared Interest Board set criteria for impact investment – Benefit marginalized communities, potential for scale – Women – Sustainability and climate solutions Engaged consultant to research impact opportunities

18. Daryn Dodson Consultant Wallace Global Fund

19. Q&A Niamani Mutima Africa Grantmakers’ Affinity Group Daryn Dodson Wallace Global Fund Scott Wallace Wallace Global Fund Cynthia Muller Arabella Advisors

20. Sampling of AGAG Membership with an Impact Investing Strategy

21. Opportunity for AGAG Funders Help to build networks and awareness Seek opportunities where Grants and or PRIs can help to reduced transactional risk and costs Cultivate strong entrepreneurs Don’t forget about public policy Share your results and experiences

22. Impact Investing Resources The Global Impact Investing Network (The GIIN) Mission Investors Exchange Council on Philanthropy Publications – Impact Investing in West Africa (Dalhberg) – Case Study: Mtanga Farms – Special Report: This is Africa

23. Stay in Touch Web – www.ArabellaAdvisors.com www.ArabellaAdvisors.com – www.AfricaGrantmakers.org www.AfricaGrantmakers.org – www.WGF.org www.WGF.org Twitter – @ArabellaAdvisor & @CynMull – @AGAGAfrica Email – Info@ArabellaAdvisors.com Info@ArabellaAdvisors.com

24. Niamani Mutima Executive Director Africa Grantmakers’ Affinity Group