Private Equity / Venture Capital facing the Sustainable Development Goals: African Realities.

Private Equity / Venture Capital facing the Sustainable Development Goals: African Realities.

Terms of Reference:

Private Equity / Venture Capital Facing the Sustainable Development Goals: African Realities

1. Background

Africa faces significant development challenges alongside substantial growth opportunities. Achieving the Sustainable Development Goals (SDGs) requires mobilizing large-scale private capital, particularly in sectors such as energy, infrastructure, agriculture, healthcare, education, and financial inclusion.

Private Equity (PE) and Venture Capital (VC) have become increasingly important financing mechanisms in Africa, supporting innovation, entrepreneurship, and business expansion. However, aligning these investment models with SDG priorities presents both opportunities and challenges due to factors such as market fragmentation, regulatory environments, currency risks, and ESG (Environmental, Social, and Governance) considerations.

This panel aims to examine how PE/VC can effectively contribute to SDG achievement within the context of African realities.

2. Objectives

Overall Objective

To analyze the role and effectiveness of private equity and venture capital in advancing the Sustainable Development Goals in Africa.

Specific Objectives

  • Assess the current landscape of PE/VC investments across Africa
  • Identify alignment between investment flows and SDG priorities
  • Analyze barriers and risks affecting SDG-oriented investments
  • Evaluate the impact measurement practices used by investors
  • Identify successful investment models and case studies
  • Provide actionable recommendations for scaling SDG-aligned investments

3. Scope of Work

3.1 Sectoral Focus

  • Renewable energy and energy access
  • Agriculture and agribusiness
  • Healthcare and pharmaceuticals
  • Education and edtech
  • Financial services and fintech
  • Infrastructure and climate resilience

3.2 Thematic Areas

  • Investment strategies and fund structures
  • SDG alignment and impact investing frameworks
  • ESG integration and reporting
  • Risk-return trade-offs in African markets
  • Role of blended finance and development finance institutions (DFIs)
  • Gender lens investing and inclusive finance

3.3 Geographic Coverage

  • Continental overview (Africa-wide)
  • Regional analysis (West, East, Southern, and North Africa)
  • Selected country case studies

4. Key Research Questions

  • To what extent are PE/VC investments aligned with SDGs in Africa?
  • What are the main constraints to scaling SDG-focused investments?
  • How do investors balance financial returns with development impact?
  • What role do DFIs and blended finance play in de-risking investments?
  • Which sectors and regions present the greatest opportunities?
  • How effective are current impact measurement and reporting frameworks?