In this episode, Ally Mwakaneno chats with Vital Capital Managing Partner Nimrod Gerber on why it is crucial for investors to equally weigh the potential impact and the business case of a venture before investing. Nimrod talks about the different impact and finance metrics such as ESG and profitability, the relationship between profitability and impact sustainable businesses and how businesses can work with governments through tools like blended finance in areas of mutual concern. Nimrod closes the episode recounting Vital Capital's experience in lending to companies in Sub-Saharan Africa on the onset of the COVID-19 pandemic and the lessons the company learnt, which will enhance collaboration with more SMEs beyond the COVID-19.
Highlights:
Impact investors should analyse the impact of a business as if there are no financial metrics and weigh the financials of a company as if there is no impact, only investing in businesses that check both boxes. There is no positive, sustainable impact if a business is not financially sound. A profitable business is likely to attract investors, making it easier to create a sustainable, scalable impact. Setting clear rules and definitions and availing all information creates an ideal environment for partnerships between governments and businesses. It is easier to invest in areas where investors, authorities and investees have a financial stake and where information is readily available and easy to access.

Audio Production by Ally Mwakaneno Gakweli – Business Writer & Podcast Host, Hisa Technologies
Snippet Artwork by Muteti Munyambu - Graphics Designer, Hisa Technologies

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