FAQs


Frequently asked questions [FAQs] about the people of the AfricaSIF Project, African Sustainable Investment Forum [AfricaSIF], sustainable investment, investment in Africa, and environmental, social and governance factors in investment decisions [ESG integration]. Have a question we have not answered? Then please email us at africasif@gmail.com


“Sustainability is an emerging megatrend, and thus its course is to some extent predictable.. For many companies, sustainability is integrated into the very core of the business.  Doing more with less is not only possible, but has become a clear imperative.” - The Sustainability Imperative, Harvard Business Review, May 2010


AfricaSIF_2Pager_2Sept2010.pdf AfricaSIF_2Pager_2Sept2010.pdf
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A. About AfricaSIF (click to expand)



1. How was AfricaSIF created?

The Africa Social Investment Forum [AfricaSIF] was created in 2009 by a group of African investment practitioners. Throughout 2009, this network grew through the development of soft and hard infrastructure, attracting people to the AfricaSIF Steering Committee, Advisory Council, and Board of Trustees. From the beginning, the AfricaSIF project was built purposefully pan-African, currently being driven by Africans from Nigeria, Kenya, Cote d'Ivoire, and South Africa, with colleagues from North Africa (Morocco and Egypt) to follow. To learn more about the AfricaSIF community, please go to: http://africasif.org/people

2. What is the AfricaSIF future?

AfricaSIF is the platform for scaling up the answers in a systemic way connecting Africa to the world and the world to Africa. AfricaSIF aims to attractive sustainable investment for sustainable development - new capital in new ways.

3. What is AfricaSIF’s mission?

AfricaSIF’s mission is to promote sustainable development in Africa by attracting sustainable finance and responsible investment across asset classes, countries, and stakeholders. Our vision is to have the majority of investment decisions contribute to sustainable development in Africa. As a not-for-profit network systemically advocating and promoting best practice in integrating environmental, social and governance [ESG] factors into investment, we believe that the need for sustainable development affects all investment decisions in Africa. The answers will impact the future of investing in both the public and private sector asset management professions into Africa.

4. How does AfricaSIF define sustainable investment?

“Sustainable investment” [SI] is defined as investment using strategies and processes that integrate environmental, social, and governance (ESG) factors. AfricaSIF is currently developing a revised definition of sustainable investment for investment practitioners in Africa to use.

5. How is AfricaSIF operated?

AfricaSIF is operated as not-for-profit a network, knowledgebase, and advocate for sustainable development in Africa. AfricaSIF’s key stakeholders include AfricaSIF members and the AfricaSIF project team. AfricaSIF members may be individuals or institutions active along the investment value chain from pension fund to investment analyst, from project financier to green investor, from philanthropy advisor to policy maker. The AfricaSIF Project team is made up of individuals in the investment space who are connected to Africa. This project team includes: i) The AfricaSIF Advisory Panel, providing input on items ranging from technical capabilities and roles to marketing, from investment to languages or sustainable development; ii) The AfricaSIF Board, playing a fundamental role in connecting AfricaSIF to appropriate accountability mechanisms under the guidance of the Chair through annual Board meetings. iii) AfricaSIF Steering Committee, actively building out the strategy as a workplan for 2010-11 to take AfricaSIF from an idea to a thriving community of investment practitioners connected, sharing knowledge and making sustainable investment happen on the ground in Africa.

6. Is AfricaSIF connected to other Social/Sustainable Investment Forums?

AfricaSIF is connected to other Social/Sustainable Investment Forums around the world. We have indeed developed relationships with: o Social Investment Forum (SIF) in United States of America: www.socialinvest.org o UKSIF in the United Kingdom: www.uksif.org o EuroSIF in Europe: www.eurosif.org o ASrIA in Asia: www.asria.org o Dutch Social Investment Forum in the Netherlands: www.vdbo.nl o Social Investment Organization (SIO) in Canada: www.socialinvestment.ca

7. How can you become an AfricaSIF member?

You can help make the AfricaSIF vision happen by joining us as a Member, Associate Member or Charter Member.

8. Is it possible to make a donation to AfricaSIF?

Yes, it is possible to make a donation to AfricaSIF. AfricaSIF relies on funding from people like you to connect Africa to the world, and the world to investment in Africa. Your funding helps us increase our network, build the knowledgebase and increase our advocacy. [Coming soon] Please support us by donating through our PayPal account [...] or email us at africasif@gmail.com.

9. Who are AfricaSIF’s key partners?

AfricaSIF benefits from the support and partnership from individuals and organizations. Such organizations include social/sustainable forums from around the world, such as: o Sustainable Investment Forum (www.socialinvest.org ) o UKSIF (www.uksif.org ) o Eurosif (www.eurosif.org) o ASRIA, The Association for Sustainable & Responsible Investment in Asia (www.asria.org) o VBDO Dutch Social Investment Forum (www.vdbo.nl ) o Social Investment Organization (SIO) in Canada (www.socialinvestment.ca) o To learn more about AfricaSIF’s stakeholders, please go to: http://africasif.org/stakeholders

10. What are the benefits of being an AfricaSIF member?

AfricaSIF is designed to offer members a network of peers, a knowledgebase of research & analysis including a bi-annual survey of assets in Africa, and a pan-African advocate for sustainable investment in countries where we have a critical mass of members. Most AfricaSIF work will be member-led and provide opportunities for member involvement and leadership, such as: * Network: Networking with industry leaders through our working groups, round-tables, and virtual discussion groups. Automatic invitation to AfricaSIF launch events in Africa and internationally, as well as our planned Sustainable investment in Africa conference. Outreach to potential clients through materials targeted at more than 200,000 members of SIFs globally each year. * Knowledgebase: Investment industry research through AfricaSIF bi-annual reports, sustainability issue guides, fund profiles, media program and other resources. Research that builds credibility for sustainable investment in academic and policy circles, increases visibility, and provides a key information service benefit to members, including first access to breaking research. * Advocate: Media, policymaker and public education campaigns in Africa that enhances the visibility, credibility, impact, and growth of sustainable investment in Africa, and in the world.

11. How can you contribute to AfricaSIF’s knowledge library?

The AfricaSIF knowledge library is a members-only repository of research and report materials of interest on the subjects of sustainable investment and Africa. As an AfricaSIF member, you have access to all of these resources. Our goal is to develop and collect research that builds credibility for sustainable investment in academic and policy circles, increases visibility, and provides a key information service benefit to members, including first access to breaking research. To contribute to the knowledge library by suggesting the addition of new documents to the library or by participating in AfricaSIF’s future research projects, please contact us at africasif@gmail.com. Members may access the library, please go to: http://africasif.org/library

12. How can you contact AfricaSIF?

To contact us to participate in the AfricaSIF project team activities, support us through donations, or submit some event information that could be of interest to the AfricaSIF community, please email us at: africasif@gmail.com.
 
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B. About investing in sustainable development in Africa (click to expand)


1. Is sustainable investment increasing?

Yes. From IFC-commissioned research in 2008, we know that over 80% of asset owners and asset managers believe that social and environmental issues will grow in importance over the next three years.

2. How will Africa be impacted by climate change?

Africa stands to suffer significantly from global climate change despite contributing less than 1% to the problem of accumulated green house gas emissions and the higher expected impact because of thinner capital resources and smaller economies.

3. What was the WSSD in 2002?

The World Summit on Sustainable Development was held in Africa in Johannesburg for the first time and focused on addressing the challenges of climate change and developing new and more sustainable methods of development, and the financing to make it happen. See http://www.worldsummit2002.org/

4. Are large investors supporting sustainable development?

Major investors across Africa include development financing institutions e.g. IFC, African Development Bank or FMO which use private equity with ESG integrated. Also investing mostly in South Africa, the Government Employees Pension Fund [GEPF] launched for the first time their “responsible investment” policy laying our the rationale and policy for underlying asset management on 25 March 2010 in Soweto.

5. What ESG issues have investment practitioners in Africa flagged as important?

ESG issues flagged in 2010 study of institutional investors in sub-Saharan Africa including water scarcity and sanitation, desertification of agriculture, climate change-linked social instability.

6. Why are stock exchanges in Africa important to developing small, micro, medium enterprises?

Stock exchanges are a good proxy indicator of investment marketplaces. Sustainable development in Africa needs more SMMEs [small, medium, micro enterprises] to grow and succeed. Local stock exchanges can offer local businesses opportunities to raise the capital needed to grow. Stock exchanges - like the AfricaSIF network - are necessary investment infrastructure in Africa.
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C. About investment in Africa (click to expand)



1. How big is Africa?

Africa is the 2nd largest continent, with 30 million square kilometers, approximately 1 billion souls and over 2,000 languages.

2. How many stock exchanges are there in Africa?

At December 2009, there were 20 stock exchanges in Africa.

3. How many countries are in Africa?

Africa has a total of 54 countries and territories.

4. How much money is invested in sustainable investment in Africa?

Current estimates point to less than 1% of AUM is managed with ESG mandates but the first-ever pan-African survey of asset management using ESG factors led by AfricaSIF in 2010 will offer the best picture by Dec 2010.

5. How big is the investment market in Africa?



6. Who are the largest African trading partners?

BRICs now rate as Africa’s top trading partner; South Africa ranks as 10th largest in 2009.

7. How have stock exchanges in Africa moved sustainability forward?

Africa has led other frontier and emerging markets in developing ESG indexes. The JSE SRIX launched in 2004 as the first exchange-led SRI index and first in emerging markets. The Egypt Stock Exchange launched the first MENA ESG index in 2009 in partnership with CRISIL, S&P and Hawkamah Institute.

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