Impact Investing in Ghana: A Multiple-Case Study

Contrary to extant studies on impact investing, which provide understanding from a demand-side perspective, this study changes this perspective by exploring the approach to impact investing from a supply-side viewpoint. Using a multiple-case study design and qualitative data from two Ghanaian impact investment organisations, significant strides are made to the limited but growing impact investment literature by providing in-depth descriptive account based on three dimensions: (i) funding approach, (ii) engagement approach, and (iii) exiting approach. Our findings provide evidence of an impact investment approach characterised by the concurrent motive of financial and social/environmental returns, longer time horizon, and engagement or provision of non-financial support. We conclude that this approach leverages the tools of venture capital to realise social or ecological purposes. The findings can potentially assist investors and entrepreneurs to make informed decisions to navigate the complexity surrounding the emerging impact investment environment in Ghana and economies of similar nature. Additionally, it will aid in developing explicit policies to regulate the sector, increase its awareness, and widens its appeal and use to serve the intended purpose of addressing social and environmental problems.