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Africa has received support in the form of aid throughout the years but the continent remains one of the most impoverished regions in the world. Recent statistics show that over 490 million people in sub-Saharan Africa live below the poverty line.
Many believe that the future of Africa’s success lies in its ability to create an entrepreneurial economy based on private ownership. According to the World Bank, skills development is key for helping the labor market in the long run.
Foreign aid continues to flow into sub-Saharan Africa – over $62B USD in 2020 alone. But are charities helping Africa? Are there better ways to help Africa that turn philanthropic investment into meaningful, long-term change?
If you've ever wondered, "How can I help Africa in a meaningful way?" keep reading to discover how impact investing can help create stronger economies across Africa.
5 Ways to Help Africa: Common Methods to Boost Economic Well-being
There are several ways to help Africa – beyond foreign aid and charitable donations – that focus on boosting all aspects of life on the continent.
1. Philanthropic Investment
One of the most common methods of helping Africa is philanthropic investment, which involves giving money or resources that support specific projects in African countries. Philanthropy in Africa addresses poverty and inequality, promotes education and health, supports small businesses and improves infrastructure.
2. Education
How can we help Africa? Education is an excellent place to start. Providing access to quality education in primary and secondary schools and universities lets people acquire the skills and knowledge necessary for economic growth and job creation.
3. Charitable Giving
Many charities in Africa work to bring about equitable distribution of resources and foster economic development. These charities provide services ranging from healthcare and nutrition to education and entrepreneurship training.
4. Technology Enhancement
Technology has the potential to shape Africa’s economy. For Africa to thrive, its people need to be empowered by digital competencies. For example, between 1,000 and 2,000 languages are spoken in Africa. Digitizing language can improve communication among diverse people, impacting the continent's economic, social and cultural welfare.
5. Impact Investing
Impact investing focuses on generating positive social and environmental change while simultaneously driving financial returns. It finances projects with specific social and environmental objectives, like supporting renewable energy or providing access to clean water. Helping Africa via impact investing is a way to combine meaningful social change with financial returns.
Are Charities Helping Africa?
If you’ve been thinking about how to give money to Africa, you’ve probably thought about donating to charities in Africa. How can you ensure that your contributions are being used to make a lasting difference? And how do you make sure your donations don't have unintended negative consequences?
When you give, you should take a close look at how the charity works to better understand how they improve aspects of African life, including poverty reduction, improved healthcare and better education.
Here are some examples of things charities in Africa can focus on:
1. Aiding in the Fight Against Medical Issues
Africa is facing severe medical issues, like malnutrition and disease. Charities that focus on medical aid are an essential part of the effort to create a healthier Africa. This fight can include programs in medical infrastructure, delivering life-saving medicines and providing training for medical professionals.
2. Supporting Agricultural Development
Agricultural development can be a powerful tool for reducing poverty in Africa. Charities that focus on supporting smallholder farmers, providing access to improved seeds and tools or improving irrigation systems can help to create a more prosperous future for African citizens.
3. Promoting Education
Education is fundamental to long-term progress in Africa. Charities that support access to quality education, both at the primary and secondary level, as well as in higher education institutions, can create more economic opportunities for Africans.
4. Developing Critical Infrastructure
A lack of basic infrastructure prevents African citizens from achieving success. Charities that support initiatives to improve roads, communications systems and even access to clean water can make a difference in the lives of many people on the continent.
How Can I Help Africa?
How can we help Africa in more ways than one? There are many ways to help Africa financially or through hands-on volunteering with a charity or organization. Everyone is different and has varying access to financial resources, industry experience and concerns. Here are some opportunities to consider.
1. Connect With Trusted Charities in Africa
One way to aid those in need is philanthropic investment through top-tier charities and organizations. Do your research to ensure that the charity is focused on achieving its stated mission, has a good track record of successful outcomes and has an open accountability system.
2. Get Involved With Volunteering Programs
Finally, consider getting involved directly by volunteering with a charity or organization in Africa. Volunteering can be an enriching experience that lets you directly impact African citizens’ lives. But always ensure that your efforts are making a positive difference and are focused on sustainable outcomes.
3. Support African Entrepreneurs and SMEs Through Impact Investing
Entrepreneurship is key to stimulating economic growth in Africa. Many organizations provide support to African entrepreneurs, through impact investments and/or training programs. Look to partner with investment firms focused on growing emerging markets and accelerating sustainable development in Africa.
How to Help Africa With Renew Capital
So, are charities helping Africa? In many cases, charities are creating real, lasting change. But there are many more opportunities to help those in need, from providing medical aid to developing infrastructure and supporting entrepreneurship.
While you should ensure that the charity you choose has an effective mission, you can make a meaningful difference by investing your time or money into organizations working toward African development.
If you’re ready to make a lasting difference in Africa, consider connecting with a trusted firm that is helping Africa through impact investment. Consider applying to Renew Capital Angels™—an active community of accredited investors seeking sustainable social impact in Africa alongside financial returns.
Disclaimer
This blog should not be viewed as investment advice, or as a solicitation of an offer to buy or sell securities or to adopt any particular investment strategy. Impact investing, and investing in frontier markets specifically, is speculative in nature and involves a high degree of risk. The Renew Capital Angels invest in companies located and doing business in sub-Saharan Africa. Investors should understand and be willing and able to handle the risks of investing in such frontier markets, which are more significant than the risks associated with investing in securities of U.S. companies or in other developed countries. Risks include the risk of total loss of an investor’s entire investment. Investors should fully understand all risks and consult with their independent financial, legal and tax advisors to determine whether any particular investment or investment strategy is appropriate for them. Renew Capital does not make any recommendation regarding the appropriateness of any specific investment opportunity for any specific investor.
