A growing number of impact investors express interest in West Africa, but they are seeking a greater understanding of the opportunities and risks in this market, Amit Bouri, CEO of the GIIN, has said.

The Global Impact Investing Network (GIIN), in partnership with Dalberg Global Development Advisors, has published "The Landscape for Impact Investing in West Africa", a report on the impact investing industry in the region.

“This report sheds light on a market that is becoming an increasingly attractive region to place impact investing capital,” said Bouri.

The report includes regional findings from 15 countries, as well as dedicated chapters covering the most active markets: Nigeria, Ghana, and Senegal.

The report analyzes West Africa’s dynamic impact investing market and finds that it is a region that presents tremendous opportunity for impact.

According to the findings, development finance institutions (DFIs) are significant players in the market, having deployed nearly $6.5bn in impact capital in the past decade.

However, several other types of investors—including VC/PE funds, foundations, family offices, commercial banks, and angel investor networks—are becoming increasingly active, with such non-DFI impact investors having deployed over $220m in theregion in the past ten years through more than 250 deals.

The most active markets are Nigeria and Ghana, with more than half of the total capital deployed in the region going to these two countries.

However, impact investors have also deployed at least $350m each in Senegal, Cote d’Ivoire, and Togo.

Across the region, investors highlight opportunities for impact and financial return, particularly in the key sectors of energy, financial technologies, and agriculture.

“West Africa is a diverse and challenging region to work in. Skepticism of impact investing in the region makes it difficult to establish credibility and raise local capital,” said Matthew MacDevette of Dalberg Global Development Advisors.

“Still, impact investors have been bold in entering markets others have ignored and have shown just how much opportunity can be found with a little patience and tenacity,” he added.