Impact Investment Boost Comes from Major Africa Deal Says AAA
Submitted by: pressreleasepoint
Boston, MA (OPENPRESS) May 11, 2011 -- Impact investment advocate, Alternative Asset Analysis (AAA), has received a boost for its cause following news that LeapFrog Investments has agreed to plough $14 million into an East African insurance project.
The deal is the largest of its kind in the history of the African microinsurance industry and marks a significant landmark investment for the fund set up in 2008 by former US president Bill Clinton through Clinton Global Initiatives. AAA partner, Anthony Johnson, who is also an advocate of impact investing, said, "LeapFrog is a fantastic example of a prosperous socially responsible fund that focuses on investing in insurance firms in Asia and Africa that help as many as 25 million vulnerable people to access insurance services."
The Founder and President of LeapFrog, Dr Andrew Kuper, agrees with AAA, stating that Africa is a lucrative place to do business: "Some of the greatest opportunities for business growth, profitability, and impact are found in Africa - whose people so often prove the critics wrong."
Through the deal, the insurance group, called Apollo Investment Ltd will receive $14 million in funding from LeapFrog's $135 million pot. Although the investment is socially responsible, the investors expect to make strong returns, according to Kuper, who explained, "By investing in Apollo, a fast-growing and multi-line insurance group, we expect to achieve robust returns and to reshape the market." He added that the investment will also help Apollo to provide a 'safety net' for million of people. He added that the deal, epitomises our profit-with-purpose approach to investing."
"We believe that socially responsible investment and profit are not mutually exclusive," added Johnson. "There are a growing number of investment opportunities for those who want to see their money grow while helping emerging economies to reap the benefits of receiving funding from foreign investors. Some projects in Brazil, like the one operated by Greenwood Management for example, are offering individuals the chance to invest as little as $10,000 in sustainable forestry plantations that help to reduce industry's dependence on native timber stocks."
AAA is an organization that hopes to promote impact investment as a viable means of generating returns while helping to boost enterprise in developing countries. Nations like Brazil have proven that, given help from foreign investors, emerging economies can really start to command attention on the world business stage alongside major economies like the US and China.
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