Determinants of impact investing for tourism development in emerging destinations of sub-Saharan Africa

Figures & data

Table 1. Some key literature on impact investing (II).

Study author/s	Research context	Method	Findings in relation to impact investing
Mogapi et al. (2019:397)	Examined how impact investors manage tensions between financial returns and social impact	Qualitative	Two opposing views expressed as to whether the tensions between financial return and social impact result in trade-offs
Agrawal & Hockerts (2019:1)	Examined practitioner interest and lack of knowledge production in II	Qualitative	Reveals unique longitudinal perspective on how II is evolving from pre-paradigm stage to the stage of proper scientific inquiry
Tekula & Anderson (2019:142)	Explores the roles and purpose of market rationales for the involvement of the public, private and non-profit facilitators in II	Qualitative	II ecosystem is populated by a multitude of actors playing facilitating roles and brokering in the market place
Roundy (2019:1)	Leveraging insights from entrepreneurial ecosystem studies to understand the dynamics of communities that encourage and support II	Qualitative	Theorised that vibrant II ecosystem has three system-level attributes: diversity, cohesion and coordination
Lehner et al. (2018:1)	Considered legitimacy to be an appropriate way to understand how actors in the II market influence discourse to overcome inherent liability of newness	Documentary analysis	Actors use diverse legitimisation strategies based on their relative positioning in the II market
Castellas & Ormiston (2018:87)	II and SDGs	Analysed performance data of IIs globally and maps impact data to the 17 SDGs	II is engaging with language consistent with the SDGs, a possible field-level frame to guide strategy and measurement
Findlay & Moran (2019:1)	Examined academic and practitioner literature on II for evidence of purpose-washing and retrofitting of funds by investors	Qualitative	Proposes a refined definition of II based on three exclusive criteria: intentionality, measurement and transparency
Choda & Taladia (2018:1)	Presents themes emerging from presentations and conversations within the innovation strand of II	Qualitative	Evaluation profession has much to offer in terms of overcoming challenges inherent in social impact measurement
Urban & George (2018)	Measures relating to II in South Africa	Quantitative	Twin factor of social impact and sustainability that influences growth
Roundy et al. (2017)	Answered four questions central to understanding the II, linked to (1) characteristics, (2) differences, (3) motivations, (4) criteria for evaluation	Qualitative	Impact investors are unique and differ from socially responsible investors and from philanthropist. They have varied motivations
Jackson & Harji (2017)	Examines the risk management and decision-making processes in rural households, and understands their implications for the evaluation of II	Qualitative	II – an approach to allocating capital to deliver a blended financial and social return
GIIN (2016)	Analysed the landscape for II in Southern Africa	Qualitative	Investors have many opportunities to support entrepreneurs who will generate both financial and social/environmental returns
Ormiston et al. (2015)	Challenges of II from the perspective of leading investors	Qualitative	Four main themes are identified as challenges: (1) focus on financial-first investments, (2) the importance of using due diligence processes, (3) opportunity to align mission and values, (4) value of network and collaboration
*UNDP (2015)	Survey on trends, constraints and opportunities for II in Africa	Qualitative	II in Africa is yet to realise its potential due to an under-developed support sector ecosystem
*GIIN (2012)	Developed a capital structure and impact governance mechanisms that satisfy social and financial goals	Case study approach	Demonstrates how diverse stakeholders worked together to create an investment that accommodates each of their financial and social objectives
*GIIN (2011:2)	Documents the decisions and activities of four investors and Mtanga Farms’ management as they balanced diverse appetites for financial and social returns	Case study approach	The potential for realising social returns was a driving factor in the investors’ decisions to pursue the investment opportunity

GIIN: Global Impact Investing Network; SDG: Sustainable Development Goal; UNDP: United Nations Development Program.*Reports on II focusing on Africa.

Figure 1. Understanding the determinants of impact investing (II) for tourism development. Source: Authors conceptualisation drawing on Dalberg (2012), Fletcher (2011), Dalberg (2011, 2012), Brest & Born (2014).

Note: R&D: research and development; SMEs: small and medium enterprises (small tourism firms).

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Agrawal, A & Hockerts, K, 2019. Impact investing: Review and research agenda. Journal of Small Business & Entrepreneurship. doi:10.1080/08276331.2018.1551457.

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Tekula, R & Anderson, K, 2019. The role of government non-profit, and private facilitation of the impact investing marketplace. Public Performance & Management Review 42(1), 142–161. doi: 10.1080/15309576.2018.1495656

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Roundy, P, 2019. Regional differences in impact investment: A theory of impact investing ecosystems. Social Responsibility Journal. doi:10.1108/SRJ-11-2018-0302.

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Lehner, O, Harrer, T & Quast, M, 2018. Building institutional legitimacy in impact investing. Journal of Applied Accounting Research. doi:10.1108/JAAR-01-2018-0001.

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Castellas, E & Ormiston, J, 2018. Impact investment and the sustainable development goals: Embedding field-level framesin organisational practice. Contemporary Issues in Entrepreneurship Research 8, 87–101. doi: 10.1108/S2040-724620180000008010

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Findlay, S & Moran, M, 2019. Purpose-washing of impact investing funds: motivations, occurrence and prevention. Social Responsibility Journal 15(7), 853–873. doi: 10.1108/SRJ-11-2017-0260

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Choda, A & Taladia, M, 2018. Conversations about measurement and evaluation in impact investing. African Evaluation Journal 6(2), 1–11. doi: 10.4102/aej.v6i2.332

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Roundy, P, Holzhauer, H & Dai, Y, 2017. Finance or philanthropy? Exploring motivations and criteria of impact investors. Social Responsibility Journal 13(3), 491–512. doi: 10.1108/SRJ-08-2016-0135

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Jackson, E & Harji, K, 2017. Impact investing: Measuring household results in rural West Africa. ACRN Oxford Journal of Finance and Risk Perspectives 6(4), 53–66.

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GIIN, 2016. The landscape for impact investing in Southern Africa. https://thegiin.org/assets/documents/pub/Southern%20Africa/GIIN_SouthernAfrica.pdf Accessed 29 July 2018.

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Ormiston, J, Charlton, K, Donald, S & Seymour, R, 2015. Overcoming the challenges of impact investing: Insights from leading investors. Journal of Social Entrepreneurship 6(3), 352–378. doi: 10.1080/19420676.2015.1049285

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UNDP, 2015. Impact investment in Africa: Trends, constraints and opportunities. United Nations Development Programme Regional Service Centre for Africa, Addis Ababa, Ethiopia.

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GIIN, 2012. Diverse perspectives, shared objectives: Collaborating to form the African Agricultural Capital Fund. https://thegiin.org/assets/documents/pub/diverse-perspectives-shared-objective.pdf Accessed 29 July 2018.

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GIIN, 2011. Improving livelihoods, removing barriers: Investing for impact in Mtanga Farms. Global Impact Investment Network. https://thegiin.org/assets/documents/pub/improving-livelihoods-removing-barriers-investing-for-impact.pdf Accessed 29 October 2019.

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Dalberg, 2012. Assessment of Impact Investing Policy in Senegal. http://dalberg.com/documents/Impact_Investing_Senegal_Eng.pdf Accessed 27 August 2014.

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Fletcher, P, (Ed), 2011. Impact investment: Understanding financial and social impact from investments in East African agricultural businesses. PCP & The Gatsby Charitable Foundation, Kampala.

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Dalberg, 2011. Impact investing in West Africa. A Report by Dalberg Global Development Advisors. http://www.rockefellerfoundation.org/blog/impact-investing-west-africa Accessed 27 August 2014.

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Brest, P & Born, K, 2014. Giving thoughts: Deconstructing impact investing. http://boundlessimpact.net/wp-content/uploads/Deconstructing_Impact_Investing.pdf Accessed 24 September 2014.

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