Impact assessment: Strategic finance in low-income countries

PIDG's Chief Sustainable Impact Officer, Marco Serena, sat down with CNBC Africa to discuss the challenges and successes in driving positive change in low-income countries through impact assessment and strategic finance. Serena highlighted the importance of determining the financial viability of investments in underdeveloped markets, emphasizing the link between strategic value and impact on local economies. He mentioned that PIDG has been a pioneer in investing in infrastructure projects in least developed countries since 2002, with over 230 projects brought to financial close. Serena stressed the importance of assessing the impact of investments on communities and the environment to attract other investors and allow finance to grow. However, aligning financial strategies with impact goals presents significant challenges. Serena mentioned the lack of tools to deliver capital for sustainable development and the need to work between the public and private sectors to create legal environments for viable projects. He discussed PIDG's role in promoting resilience to climate shocks and changes through investments in sectors like battery energy storage and electric vehicles. Serena expressed the need to scale up efforts to accelerate sustainable development and climate action on the continent. When it comes to assessing impact in low-income nations, Serena highlighted the importance of international standards for health, safety, and social inclusion. He acknowledged the gap between national legislation and international standards, emphasizing the need to work with regulators to raise standards and absorb costs to move the market forward. Serena also addressed the undervaluation of positive impacts generated by projects and the importance of pricing in the value of investments that deliver positive change for communities and the local economy. In conclusion, Serena emphasized the long-term impact of infrastructure investments and the importance of future-proofing investments by considering climate risks. He underscored the significance of creating positive change for communities and investors, highlighting the need for international standards to catalyze sustainable development. Serena's insights shed light on the complexities and opportunities in driving positive change in low-income countries through impact assessment and strategic finance.