There has been a lot of news in recent weeks showing a very bearish Emerging Markets. While much of the data points to this and it has been clear for a while that a strengthened US dollar means weaker numbers coming out of developing countries, not all is lost – especially when it comes to SDG implementation.
This is important, because as the US tightens its fiscal policy taking cheaper money off the table, Emerging Markets have struggled to keep up.
Do You Want to Make an Impact? Sign Up to Learn How…
“We are all aware that the normalization of the monetary policy in the US, combined with their fiscal policy and trade policy … are all creating a systemic impact to the whole economy in the world,” Indonesian Finance Minister Sri Mulyani Indrawati said in an interview during the meetings in Bali.
So how should interested investors handle the current challenges in the Emerging Markets?
Impact investing within the Emerging Markets has always been risky, yet when there is success there is a huge upside. What makes the SDG framework important is that it ties in many projects within the pre development stage to a system backed by the UNDP and other international institutions.
Impact investing always has risk, but investing alongside international institutions as well as other blended finance partners mitigates the challenges when investing in emerging markets. The current challenges aside, Emerging Markets along with the need to implement the Sustainable Development Goals adopted by the UN means that there is assured source of backing at the highest international levels.
Green Banks, Institutional Investors, and International Banking make impact investing in the Emerging Markets a play that is worthwhile with a potentially large upside.
- David is SDG-Market's Chief Marketing Officer. He is considered an expert in the Middle East and Sub-Sahara African regions as they relate to indigenous rights and geopolitics. In the past he acted as an advisor to OurCrowd's director of investment community as well as having consulted a variety of fintech and equity level crowdfunding platforms.
- Emerging Markets2018.10.15Don’t Pay Attention to the Volatility in the Emerging Markets
- Emerging Markets2018.08.13Emerging Markets are Getting a Beating, Impact Investments More Important Than Ever
- Sustainability2018.07.31Africa is On the Right Track to Eliminate Plastics
- Emerging Markets2018.06.11YES IT CAN: Can Africa Tap Its Sustainable Energy Potential?