Impact Investing in Brazil

In Brazil, the scenario is one of timid progress in invested volumes. Despite being a recent market and still in development, we already have a total of resources available for impact investments estimated at 186 million dollars.

In general, while the social entrepreneur finds it difficult to access cheap and patient credit, Investors who want to allocate their resources to organizations focused on socio-environmental impact also cannot easily find these application opportunities.. See more about Why Impact Investing.

On the entrepreneur's side, access to financing and investment for social organizations and impact businesses with and non-profit is restrictive due to the size and model of organizations and the high interest rates practiced in the market. These initiatives, however, need this type of capital both to keep the operation running and to expand their impact.

With the evolution of markets and collective consciousness, the demand for sustainable socio-environmental options has been growing at rates greater than the available offers, generating fundraising opportunities for organizations in more critical stages.

The development of financial mechanisms that meet these demands (such as the Sitawi Collective Lending Platform) it is important for reduce the death rate of impact organizations, as well as to break down barriers to investment with impact.

Sources: 

  1. http://ice.org.br/wp-content/uploads/pdfs/Mapa_do_setor_de_impacto_no_brasil_Ande.pdf
  1. https://aliancapeloimpacto.org.br/wp-content/uploads/2020/02/paper-produtos-financeiros-ice-itau-portugues.pdf

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