Organizations and companies in Central America come together to create the first impact investing platform in the region

March 2021. VIVA Idea, Alterna and INCAE join together with more than 13 organizations to create the Central American Impact Investment Platform (PiiC), whose main objective is to promote the impact investment sector in Central American countries, to turn it into an engine for the sustainable development of the region. 

Impact investing is a growing area of ​​investment that is helping finance solutions to some of the biggest challenges we face in our societies, such as affordable housing, sustainable agriculture, and renewable energy, among others. Look for a measurable social and / or environmental impact, as well as a financial return.

According to Shannon Music, Co-Executive Director of VIVA Idea, “Today, the financial sector around the world is changing its paradigms by worrying not only about the financial return on an investment, but also about its environmental and social impacts. It is showing that by having a social and environmental focus, they not only contribute to society, but also strengthen the profitability and resilience of their investment projects. "

The PiiC comes to position and strengthen knowledge about impact investing in the region through the awareness of key actors that make up the sector's ecosystem, the active and strategic promotion of impact investments, in addition to supporting development of ventures and companies with impact objectives at the regional level.

"The search for a systemic and sustainable change in the region starts from nurturing a robust entrepreneurship ecosystem, with strengthened ventures capable of generating impact, but also of generating growth and therefore capturing the interest of both regional and international investors", commented Daniel Buchbinder, Founder and CEO of Alterna.

Impact investing promotes companies, initiatives and projects that have a transformative effect in areas of high value for the Central American region and its nations. In addition, it expands the total reserve of funds available for social and environmental purposes; encourages innovative approaches to solving old problems; and it recognizes that the challenges facing society are too great and complex to be solved by government, philanthropy and non-profit organizations alone.

“INCAE, as an international and non-profit organization, is in itself an impact investment, and has dedicated its more than 56 years of existence to promoting the sustainable development of Central America and all of Latin America. Therefore, we are proud to be part of the Impact Investment Platform in Central America to promote the creation of more companies that seek a measurable social and / or environmental impact, as well as a financial return, in sectors as diverse as education, waste management, sustainable agriculture, renewable energies, and even the arts ”, indicated Wendy Rodríguez, Director of Institutional Development of INCAE and member of the Board of the PiiC.

Today, there are many types of investors who participate in these impact investments: family offices, development finance and international cooperation institutions, fund managers, public and private foundations, banks and other institutional investors such as retirement funds and investment companies. insurance, governments, community finance organizations, etc.

The PiiC is part of the Global Steering Group for Impact Investing (GSG), an organization that was born from a G8 initiative and that seeks to contribute to sustainability and global development through impact investing, strengthening it as a key tool to address poverty and environmental challenges. The PiiC is the representative for Central America in the GSG and focuses on creating impact in Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and Panama.

Organizations such as the Aspen Network of Development Entrepreneurs, Pomona lmpact, FUNDES Latinoamérica, Fundación Monge, Banco Lafise Honduras, Voces Vitales El Salvador, IDC, Capital & Advice, HEIFER International, ACDI VOCA, and Seed by EY are part of the organizations that together he VIVA Idea, Alterna and INCAE work together to promote the impact investing sector in Central America.

If you want more information about the PiiC or be part of this great initiative, you can enter the following link or write to the mail info@platformaiic.org.

Photos: Strategic planning Central American Impact Investment Platform