UNDP Africa Investment

Insights Report
Fourth Edition: Enabling Environment
Opportunities
 UNDP AFRICA
INVESTMENT INSIGHTS
REPORT

FOURTH EDITION:
ENABLING ENVIRONMENT
OPPORTUNITIES

Copyright © UNDP 2025. All rights reserved.

One United Nations Plaza, NEW YORK, NY 10017, USA

United Nations Development Programme

Africa Sustainable Finance Hub
UN House, 351 Francis Baard Street
Pretoria, South Africa
 Authors: Joanne Manda, David Mueller and Zain Kazmi

Support: Khombomoni Chuma, Stephanie Mukoko, Ana-Maria Beldiga and Nozipho Kumalinga
Oswald Osaretin Guobadia, Tracy Okoro Issac
Lily Murei, Romain Galgan
Syed Asfar Hussain Shah, Christopher Hughes and Tiina Turunen
UNDP Africa Inter-Practice Coordination Group (IPCG)

The views expressed in this publication are those of the author(s) and do not necessarily represent those
of the United Nations, including UNDP, or the United Nations Member States.
UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality,
and climate change. Working with our broad network of experts and partners in 170 countries, we help UNDP and their affiliates (collectively “UNDP”) do not seek or solicit investment for programmes,
nations to build integrated, lasting solutions for people and planet. Learn more at undp.org or follow projects, or opportunities described in this report (collectively “Programmes”) or any other Programmes,
@UNDP. and nothing in this document should constitute a solicitation for investment. The actors listed in this
report are not partners of UNDP, and their inclusion should not be construed as an endorsement or
The Sustainable Finance Hub (SFH) brings together UNDP’s financial expertise to harness public and recommendation by UNDP for any relationship or investment.
private capital for the Sustainable Development Goals (SDGs) – supporting governments, investors
and businesses in reaching climate, social impact and sustainability targets. Its work drives systemic The descriptions in this document are provided for informational purposes only. Under no circumstances
change towards a sustainable financial architecture that benefits people and the planet. Find out more should their appearance in this report be construed as an endorsement for any relationship or investment.
about its integrated services that ensure all finance is sustainable at sdgfinance.undp.org or follow at UNDP assumes no liability for investment losses directly or indirectly resulting from recommendations
@UNDP_SDGFinance. made, implied, or inferred by its research. Likewise, UNDP assumes no claim to investment gains
directly or indirectly resulting from trading profits, investment management, or advisory fees obtained by
The UNDP Africa Sustainable Finance Hub (ASFH) harnesses the potential of sustainable finance following investment recommendations made, implied, or inferred by its research.
solutions for countries, governments and the private sector to realise Africa’s development objectives.
Investment involves risk, and all investments should be made with the supervision of a professional
The UNDP timbuktoo initiative represents a bold and transformative effort to position Africa as a global investment manager or advisor. The materials in this report are not an offer to sell or a solicitation of
innovation and entrepreneurship powerhouse. Conceived as a multi-sectoral platform, the initiative aims an offer to buy any investment, security, or commodity, nor shall any security be offered or sold to
to address systemic challenges inhibiting entrepreneurs, enabling them to scale, thrive, and contribute any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such
meaningfully to the continent’s economic growth. jurisdiction.
TABLE
OF CONTENTS
Foreword .............................................................................. 2

Executive Summary ..................................................................... 3

Section 1: Taking Stock of African SDG Investment Opportunities ........................... 5

1.1 Introduction .................................................................... 6

1.2 SDG Investment data and trends across Africa ................................... 7

1.3 Financing SDG investment opportunities and the case for public support . . . . . . . . . . . . . 12

Section 2: Enabling Environment Opportunities for SDG Investments in Africa . . . . . . . . . . . . . . . . 14

2.1 Understanding white spaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2.2 Key barriers to SDG investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2.3 Market, policy and regulatory opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

UNDP AFRICA
INVESTMENT
INSIGHTS
REPORT 1
 FOREWORD EXECUTIVE SUMMARY

Africa stands not at a crossroads, but at a Let’s be clear: Africa doesn’t need saving. It needs SDG Investor Maps are a market intelligence tool emerging markets. In addition to providing data
launching pad. In this era of global uncertainty space. Space to lead, innovate, compete, and produced by the United Nations Development that enables investors to explore opportunities
– economic volatility, climate disruption, claim its future. This report serves as both mirror Programme (UNDP) in partnership with for generating development and financial impact,
geopolitical realignment – we are seeing renewed and map – guiding action for those ready to bet governments to help private investors identify SDG Investor Maps help organizations to direct
opportunities: a continent ready for partnerships. on Africa not from charity, but from strategy. investment opportunities and business models activities and capital to where they can have
with potential to advance the Sustainable the most impact on the SDGs. This information
The global economy’s center of gravity is We are ready. Are you? Development Goals (SDGs). Their aim is to is complemented by the SDG Impact Standards,
shifting. Influence now flows through innovation, provide funds, financiers and corporations with which enables them to operate more sustainably
investment, and ideas – all resources Africa actionable data and insights that enable them to and track their contributions to the SDGs.
possesses in abundance. What constrains us use their capital for good while making a financial
isn’t talent or ambition, but trust, capital, and profit. This helps to mobilize the resources The UNDP Africa Investment Insights Report
environments that unleash our potential. needed to advance sustainable development, provides valuable insights into selected African
and make private finance integral to achieving markets, drawing from SDG Investor Maps in
This fourth Africa Investment Insights Report isn’t the SDGs, especially considering the existing sub-Saharan Africa. In its third edition, the annual
just analysis – it’s a call to action. It spotlights how financing gap. publication offered SDG investment data and
SMEs – the backbone of our economies – need trends from 15 African countries with an emphasis
robust infrastructure, consistent policies, patient UNDP’s Africa Sustainable Finance Hub (ASFH) on climate-related investment opportunities. In this
capital, and scalable platforms. has completed 20 SDG Investor Maps across current fourth edition, the dataset has expanded
19 sub-Saharan African countries, including a to include SDG investment opportunities from
They deserve ecosystems that recognize them dedicated SDG Investor Map for Zanzibar. The four additional SDG Investor Maps – offering
as prosperity partners, not risk factors. tool has also been adopted to marginalized greater country coverage to capture the diversity
cross-border contexts through the Guidelines of African economies. This report’s focus is on
At UNDP, we’re building these ecosystems for African Borderlands SDG Investor Maps. highlighting the policy, regulatory and market
Maxwell Gomera
alongside governments and private sector allies. These SDG Investor Maps have driven a shift in barriers obstructing private sector participation
Through initiatives like the SME Disruption Lab Director development financing by providing investors in critical SDG opportunities to underline the
and Project DIGIT, we’re investing in environments UNDP Africa Sustainable Finance Hub with access to vibrant and innovative market importance of catalytic interventions for unlocking
Resident Representative,
where African innovation thrives. UNDP South Africa intelligence, along with insights into business the private sector’s full potential.
models and investment prospects in Africa’s

2 3
 The UNDP Africa Investment Insights Report Alternative Energy sectors, for example limiting
offers the following key messages on SDG- the role the private sector can play in meeting

01
SECTION
focused investment opportunities across Africa: basic needs as per SDG 2 – Zero Hunger
and SDG 3 – Good Health and Well-being.
• SDG investments deliver financial profits
• Competitiveness challenges are the critical
Many opportunities can provide lucrative market barrier:
financial returns of 15-20 percent and target
significant market sizes of US$100 million Limited competitiveness in domestic
and $1 billion, generating accumulated markets, where local enterprises struggle
positive cash flows in 5-10 years. to provide competitive goods and services,
leads to low local market growth and
• Investments across Africa have significant over-reliance on international markets,
impact potential showing the importance of countries
harnessing their comparative advantage.
Most opportunities can generate a
new positive outcome for underserved • Policy and regulatory challenges require
stakeholders, including in rural areas, public-private collaboration
addressing both basic needs (such as SDG
1 – No Poverty) and structural economic Some SDG investment opportunities are
transformation requirements (such as SDG constrained by policy and regulatory
8 – Decent Work and Economic Growth). frameworks, which fall entirely under the
public sector’s influence. This highlights
• Public support unlocks private capital for the critical role of government in providing
the SDGs an enabling environment. Most barriers,
however, emerge in interaction with the
While many opportunities are commercially
viable, most require financing models
that incorporate public support. These
private sector, where businesses and
investors have an important role to play
alongside public stakeholders, such as by
TAKING STOCK
OF AFRICAN SDG
models call for de-risking measures, policy supporting human capital growth to address
incentives, effective pricing mechanisms, skills mismatches.
and catalytic engagement by governments
and development partners. Complementing the detailed Africa SDG Investor

Diving into enabling environment

opportunities from the 20 African SDG
Maps, which are publicly accessible on the
SDG Investor Platform, the report showcases
opportunities for private-sector partners to utilize
INVESTMENT
OPPORTUNITIES
Investor Maps, the UNDP Africa Investment existing data and conduct their own due diligence
Insights Report highlights the following: towards realizing impactful SDG investments.

• Bottlenecks limit growth of SDG investments

Private capital faces limitations to deliver

financial returns and impact potential due
to market as well as policy and regulatory
gaps, especially in the Food and Beverage,
Infrastructure, and Renewable Resources and

4
 INTRODUCTION SDG INVESTMENT DATA AND TRENDS
ACROSS AFRICA
SDG Investor Maps are a market intelligence tool This fourth edition provides economic, social
produced by the United Nations Development and environmental insights from 20 African
Programme (UNDP) and its partners to assist SDG Investor Maps (the 16 included previously Based on the 20 SDG Investor Maps, the regional The most prominent industries in which
private investors in identifying investment plus four additional SDG Investor Maps from distribution of IOAs is: 38 percent in Eastern these IOAs are found (according to the SASB
opportunities and business models with Angola, Côte d’Ivoire, Mauritania and Togo). Africa; 31 percent in Southern Africa; and 31 SICS classification) are: Agricultural Products
significant potential to advance the Sustainable All findings are available publicly on the UNDP percent in Western Africa. Using a tailored (23 percent), Solar Technology and Project
Development Goals (SDGs). Pioneered by SDG Investor Platform. This edition focuses on version of the Sustainable Accounting Standards Developers (10 percent), and Waste Management
UNDP’s Sustainable Finance Hub (SFH), SDG enabling environment opportunities that can Board (SASB) Sustainable Industry Classification (6 percent).
Investor Maps aim to equip financiers and make the private sector an even more critical System (SICS), these investment opportunities are
businesses with actionable data and insights to agent of change. It is delivered in partnership situated within 11 sectors, 38 sub-sectors and 44 Regions have specific target industries of
deploy their capital for good while generating with timbuktoo, UNDP’s bold initiative sparking industries. The most prominent sectors are: Food prominence, especially Processed Foods in
financial returns. In this way, UNDP supports the up the African innovation ecosystem, to place and Beverage (32 percent), Infrastructure (22 Eastern Africa, Consumer Finance in Southern
financing of national development priorities by a particular emphasis on the entrepreneurial percent), Renewable Resources and Alternative Africa, and Meat, Poultry and Dairy in Western
directing private resources to areas with potential ecosystem and innovation in high-potential Energy (11 percent), Health Care (10 percent), Africa.
for the greatest impact on people and the planet, thematic areas, such as AgriTech and GreenTech. Education (8 percent), Services (5 percent) and
helping to address the SDG financing gap. Financials (4 percent).
Insights in this report are based on the 250
Across the African continent the financing Investment Opportunity Areas (IOAs) in SDG
landscape is marked by heavy reliance on Investor Maps, including data on business models Most prominent target sectors (percent of IOAs)
external resources and slow domestic revenue that show significant financial and SDG impact
growth. Channeling financial assets into potential. Additionally, for the first time, the report
transformational and impactful investments will reviews the SDG Investor Maps’ 53 white spaces
Resource Transformation
help alleviate increasing debt burdens many to provide an overview of market as well as policy
Transportation
governments on the continent face. Within this and regulatory obstacles for SDG investments
Technology and Communications
context, based on the SDG Investor Map, the in sub-Saharan Africa. The market intelligence
Consumer Goods
UNDP Africa Investment Insights Report provides covers five low-income countries, 10 lower-
Financials
an overview of private-sector opportunities with middle-income countries (including Zanzibar),
Services
potential for economic, social and environmental four upper-middle-income countries and one
Education
impact across Africa. In its third edition, the report high-income country. These include 10 countries
Health Care
utilized market intelligence from 16 economies – classified as least-developed countries (including
Renewable Resources and Alternative Energy
Eswatini, Gabon, Ghana, Kenya, Lesotho, Malawi, Zanzibar). The report presents an analysis across Infrastructure
Mauritius, Namibia, Nigeria, Rwanda, Seychelles, sub-Saharan Africa as well as regional findings Food and Beverage
Sierra Leone, South Africa, Tanzania, Uganda from Eastern, Southern and Western Africa.
- 5 10 15 20 25 30 35
and Zanzibar – offering SDG investment data
and trends with a specific emphasis on climate This first section of the report offers updated
opportunities and avenues for the private findings on SDG investment opportunities and Chart 1: Most prominent target sectors (percent of IOAs)
sector to support African countries’ Nationally highlights important developments since the last
Determined Contributions (NDCs) under the Paris edition, drawing on IOAs. The second section
Agreement, drawing on UNDP’s climate expertise provides an analysis of white spaces to highlight
and its global Climate Promise 2025. enabling environment opportunities to SDG
investment across Africa.
6 7
 Market size IRR and ROI range distribution (percent of IOAs)

The SDG Investor Maps indicate the market size have CAGR ranges of below 5 percent and 5-10 40
of each IOA using metrics such as US dollar value percent each; 18 percent have CAGR between 10- 35

or Compound Annual Growth Rate (CAGR).1 Of 15 percent; and 8 percent of IOAs have a CAGR 30

those IOAs identifying a market size in US dollars, above 25 percent. 25

36 percent have a market size between $100 20

15
million and $1 billion, 34 percent have a market In Eastern Africa and Southern Africa, more IOAs
10
size below $50 million; and 22 percent have a target a smaller market size of below $50 million
5
market size above $1 billion. For IOAs in which (44 percent and 31 percent, respectively).
0
market size is identified using CAGR, 29 percent < 5% 5-10% 10-15% 15-20% 20-25% 25%

IRR ROI
Market size - US$ value distribution (percent of IOAs)

Chart 3: IRR and ROI range distribution (percent of IOAs)

40
Investment timeframes
30

20

10
Nearly half of all IOAs (44 percent) require IOAs in the Consumer Goods (71 percent) and
0 between 5-10 years to generate accumulated Financials (60 percent) sectors exhibit the shortest
< $50 million $50-100 million $100-1 billion > $1 billion
positive cash flows; 36 percent expect a short- investment timeframes, while opportunities in the
term investment timeframe of less than five years; Transportation (67 percent) and Infrastructure (41
Chart 2: Market size – US$ value distribution (percent of IOAs) and the remaining 20 percent of IOAs indicate a percent) sectors require the longest investment
long-term timeframe of over 10 years. timeframes.

Investment timeframes (percent of IOAs)

Indicative return profiles
60
An estimated 26 percent of IOAs have an Internal 25 percent, and 20 percent expect margins
Rate of Return (IRR) between 15 and 20 percent, between 15 and 20 percent. 50
and 38 percent have a Return on Investment
(ROI) in the same range. In the 20-25 percent IOAs in the Food and Beverage (for IRR) as well 40
bracket, 24 percent report IRR, while 29 percent as Financials and Services (for ROI) sectors
report ROI. Among IOAs that indicate Gross Profit anticipate the highest returns with 84 percent 30

Margins (GPM)2, 47 percent expect margins above and 100 percent of the opportunities indicating
20
return profiles of above 15 percent, respectively.

10

1. CAGR describes the historical or expected annual growth of revenues (or market size) during a particular period

2. GPM describes an investment’s or company’s net sales minus the Cost of Goods Sold.

8 Chart 4: Investment timeframes (percent of IOAs) 9

 Ticket size SDGs

Among all investment opportunities, 38 percent and Alternative Energy sectors are suitable for The most addressed SDG by these IOAs is SDG make it difficult for traditional investors with larger
necessitate investment amounts of $1-10 million investments of ticket sizes ranging from less 1 – No Poverty (18 percent), followed by SDG 8 – ticket size expectations to use their capital to
to realize the IOA’s business model. Another than $500,000 to over $10 million, indicating the Decent Work and Economic Growth (15 percent) address basic needs but can open opportunities
22 percent have a ticket size below $500,000 attractiveness of these sectors. and SDG 2 – Zero Hunger (12 percent). In Western for innovative financing mechanisms disbursing
or above $10 million each, while 18 percent fall Africa, SDG 7 – Affordable and Clean Energy also smaller loans for example via local banks.
between $500,000 and $1 million. Eastern Africa has the most IOAs with ticket sizes emerges as a top target (15 percent).
of under $500,000 (35 percent). SDGs 7-11 on economic impact, on the other hand,
Opportunities in the Infrastructure, Food and The most addressed SDG indicators are: 7.1.1 which are focused on energy and infrastructure
Beverage as well as Renewable Resources Proportion of population with access to electricity opportunities, are more likely to require large
(8 percent); 2.1.1 Prevalence of Undernourishment investment amounts of over $10 million. IOAs
Ticket size ranges (percent of IOAs) (7 percent); and 1.1.1 Proportion of the Population impacting SDG 7 – Affordable and Clean Energy
Living below the International Poverty Line (6 and SDG 8 – Decent Work and Economic Growth
percent). also correlate with return profiles of over 20
percent (as measured in IRR). This speaks to the
SDGs 1-3 on social impacts, especially food ticket size requirements and return expectations
security and health outcomes, are linked with of many institutional investors.
small ticket sizes of under $1 million. This may

Primary SDGs addressed (percent of IOAs)

Chart 5: Ticket size ranges (percent of IOAs)

Chart 6: Addressed SDGs (percent of IOAs)

10 11
 Impact classification Financing models (percent of IOAs)

Utilizing the ABC Impact Norms developed by the remaining 6 percent “act to avoid harm”, which
Impact Management Project and incorporated by reduces or mitigates a negative outcome.
Impact Frontiers, 56 percent of IOAs “contribute
to solutions”, which means they generate a new “Contribute to solutions” IOAs are predominantly
positive outcome for a stakeholder who would found in the Infrastructure and Food and Beverage
otherwise be underserved. Thirty-eight percent sectors (24 percent each). Eastern Africa has the
of IOAs “benefit stakeholders” and are therefore largest share of “contribute to solutions” IOAs (63
maintaining or improving a positive outcome. The percent).

Geographic focus

Semi-urban areas are targeted by 38 percent solutions”. They are also more likely to achieve
of IOAs, followed by 34 percent targeting urban higher returns, as measured in ROI. This may
areas and 28 percent targeting rural areas. reflect the scalability of opportunities in urban
Chart 7: Financing models (percent of IOAs)
contexts and the presence of proven business
Urban opportunities show greater tendencies for models that perform well in such environments.
higher impact classifications and “contribute to
Market risks

Supply chain constraints constitute the greatest across the African continent. However, many in-
market risk for investment opportunities, affecting vestment opportunities could not be included as
FINANCING SDG INVESTMENT 29 percent of all IOAs. Capital intensity emerges
as the second most prominent market risk at 19
key policy, regulatory or market barriers limit their
viability. The next section analyses these barriers
OPPORTUNITIES AND THE CASE FOR percent, followed by regulatory challenges at 16
percent.
and pathways for growth with the ambition to un-
lock additional resources for Africa’s sustainable

PUBLIC SUPPORT The IOAs and their compositions signal abundant

development progress.

opportunities for transformational investments

Financing models

Looking at predicted financing options for the percent of investment opportunities with SDG
SDG investment opportunities across geograph- potential require a financing model that necessi-
ic areas, 47 percent of IOAs are appropriate for tates public support.
financing at ordinary market conditions through
commercial instruments. By sub-region, Southern and Western Africa have
larger shares of commercial financing IOAs (49
Another 36 percent of IOAs necessitate a blend- percent and 48 percent of investment opportu-
ed financing model that includes risk-sharing nities, respectively) than Eastern Africa. By ticket
arrangements, and 17 percent rely on a conces- size, IOAs requiring above $10 million have the
sional financing model such as concessional in- lowest share of commercial financing (35 per-
frastructure loans, with conditions that are more cent), and the highest share of blended financing
generous than standard market rates. In all, 53 models (50 percent).

12
 02
SECTION
UNDERSTANDING WHITE SPACES

In addition to the IOAs that deliver investable Twenty out of the 53 white spaces face market
solutions to pressing SDG needs, SDG Investor gaps (market white spaces), and 18 white spaces
Maps diagnose complementary white spaces feature policy and/or regulatory challenges
that identify policy, regulatory and market barriers (policy white spaces). The remaining 15 white
obstructing private sector participation and spaces include both market as well as policy
growth in critical SDG opportunities. If addressed, and/or regulatory issues (dual white spaces),
these white spaces can unlock additional private indicating the interdependence between market
capital to advance sustainability objectives. as well as policy and regulatory dynamics.
They therefore form enabling environment
opportunities of significance to governments This section first provides an overview of the white
and development partners given that catalytic spaces, and then discusses the market and policy
interventions can achieve impact at scale. barriers they face. For the critical gaps identified,
learnings from UNDP’s timbuktoo initiative are
Within the 20 African SDG Investor Maps, 53 applied to showcase country experiences that
white spaces show potential for private sector- offer enabling environment solutions impacting
led development impact once the market as real economies through entrepreneurial
well as policy and regulatory environments ecosystems and innovation.
progress alongside evolving market dynamics,
and an enabling environment for private sector

ENABLING
contributions is established.

ENVIRONMENT KEY BARRIERS TO SDG INVESTMENTS

OPPORTUNITIES FOR Food and Beverage (24.5 percent), Infrastructure

(19 percent) and Renewable Resources and
food production, processing and distribution,
including mechanization. For policy white

SDG INVESTMENTS
Alternative Energy (17 percent) feature the most spaces, Infrastructure (28 percent) is the
white spaces overall. For market white spaces most prominent target sector, concerning
and dual white spaces, most opportunities are mostly support infrastructure for energy and
in the Food and Beverage sector (35 percent agricultural production and distribution, as well as

IN AFRICA and 27 percent, respectively) and relate to manufacturing and housing infrastructure.

14 15
 WHITE SPACE SPOTLIGHT
LOCAL AGRICULTURAL PRODUCTION IN
SEYCHELLES
Draft business model: Produce nutritious crops, particularly for local households
and the hospitality industry. Applying the concept of climate-smart agriculture, the
model should prove resilient to climate change impacts. It can use intensive agriculture
techniques, notably for high-tech vertical farming.

Development need: In Seychelles, agricultural contribution to the GDP amounts to

only 1.89 percent, which is low compared to other African countries, particularly in East
Africa where 20 percent of GDP comes from agriculture. In addition, in most of Africa, the
agricultural sector employs on average between 60 percent and 80 percent of the labour
force, compared to 3.7 percent in primary production agriculture in Seychelles. The total
land size of the islands is limited and amounts to 455 square kilometres, of which 46
percent is legally protected for conservation purposes.

Emerging private sector market potential: Seychelles is heavily dependent on food

imports for domestic needs, and hence vulnerable to shocks such as the COVID-19
pandemic and the war resulting from the Russian Federation’s invasion of Ukraine.
Seychelles relies exclusively on importation to supply the local market with onion,
potatoes, carrots, garlic and ginger. Due to a lack of arable land on Main Island Mahe,
Praslin and La Digue, agricultural production can be promoted for development on the
outer islands. Islands such as Desroches and Coëtivy can produce the whole range of
vegetables, indicating that a variety of crops can grow under local climatic conditions.
Onion, potatoes, carrots, garlic and ginger have an annual import value of around $40
million.

Policy/regulatory momentum: In 2018, the Government of Seychelles developed an

Agricultural Comprehensive Plan, in which 15 core local products were identified. These
include tomatoes, lettuce, capsicum, cucumber, eggplant, Chinese cabbage, cabbage,
chili, banana, cassava, sweet potato, herbs/spices, pumpkin, beans and pawpaw. Despite
the government’s objective to assess the sustainability of agricultural lands and their
crops, and its commitment to developing a policy to enhance productivity and efficiency,
no such policy has yet been implemented. If policy and regulatory gaps are addressed,
Seychelles can substitute fruits and vegetable imports and enhance its self-sufficiency.

See Seychelles SDG Investor Map Summary Report for additional information and individual references.

16 17
 Opportunities in the Health Care sector almost underserved by the public sector. This may also
exclusively feature market gaps, rather than policy indicate a concentration of private sector activity
and regulatory gaps, highlighting challenges in urban areas, neglecting the communities most
in delivering services and products to markets in need.

Chart 9: SDGs (number of white spaces)

Chart 8: Sectors (number of white spaces)

Thematically, most white spaces relate to food potential, but lacks a dedicated aquaculture policy
systems (25 percent), energy transition (19 and the necessary regulations for the production
In terms of regional distribution, 24 white spaces Across all white spaces, the opportunities with
percent) and trade (16 percent). and trading of relevant products, particularly
have been identified in Southern Africa, compared the greatest potential contribution target SDG
Eucheuma spinosum and Kappaphycus alvarezii
to 15 in Eastern Africa and 14 in Western Africa. 12 – Responsible Consumption and Production
Opportunities with trade relevance are more (commonly known as cottonii) seaweed, as well
In Western Africa, most opportunities are market (14 percent), followed by SDG 8 – Decent Work
prominently represented among policy white as sea cucumber and mud crab. If addressed,
white spaces, alluding to additional market and Economic Growth (12 percent) and SDG 9 –
spaces than market white spaces, demonstrating sustainable aquaculture could help leverage
potential in the region. In Eastern Africa, however, Industry, Innovation and Infrastructure (11 percent).
the critical importance of coordinated policy and Zanzibar’s rich blue economy and comparative
policy white spaces are more numerous,
regulatory action for cross-border investment advantage, positioning it as a leading horticulture
suggesting strong market dynamics that are SDG 2 – Zero Hunger and SDG 3 – Good Health
and business activity – as pursued through the export hub within the AfCFTA. This would be
limited by policy and regulatory challenges. and Well-being are among the top targets for
African Continental Free Trade Area (AfCFTA). especially relevant through the Trade in Goods
market white spaces and dual white spaces. This
Protocol, supported by harmonized cross-border
At the country level, Malawi, Sierra Leone and reflects the persistent challenge of meeting basic
For example, in Zanzibar, sustainable aquaculture policies such as taxation frameworks.
Lesotho show the highest number of market white needs – particularly for marginalized communities,
production for export shows strong market
spaces, indicating significant market potential in often traditionally served by governments –
emerging economies. Zanzibar and Seychelles through private sector interventions.
are among the countries with the highest
numbers of policy white spaces, highlighting the SDG 13 – Climate Action is the leading target SDG
importance of a strong enabling environment for for dual white spaces, underscoring the interplay
small island economies with unique market and between market and policy dynamics in enabling
development dynamics. In Angola, dual white the private sector to support efforts to combat
spaces are the most prevalent, pointing to close climate change and its impacts.
ties between policies and private sector activities
in the country.
18 19
 Box 1: Kenya-Uganda Borderlands SDG Investor Map and enabling
environment findings

As a pilot conducted in partnership with the UNDP Resilience Hub, the Kenya–Uganda
Borderlands SDG Investor Map identifies cross-border SDG investment opportunities and
bottlenecks. Draft results indicate, for example, significant potential in the honey value
chain in the Karamoja–West Pokot borderland, enabled by coordinated policy action and
investment in value addition. The region’s acacia woodlands and semi-arid landscapes
provide ideal conditions for high-quality honey production, which has evolved from
traditional practices to modern apiculture techniques with support from the Governments
of Kenya and Uganda in harvesting, processing and packaging. On both sides of the
border, cooperatives have played a key role in organizing beekeepers, improving quality
standards and expanding market access. With honey recognized for its unique flavor and
medicinal properties, branding efforts under the “Pokot Honey” label, standardized by the
Kenya Bureau of Standards, have strengthened its market position regionally and beyond.
Additional value generation can result in increased income for local communities, where
private sector partners are needed to realize this potential.

By contrast, the commercialization of aloe vera remains constrained by uncoordinated Chart 10: Themes (number of white spaces)
policies and weak regulatory frameworks, despite its promise as a cross-border investment
opportunity in the Karamoja–West Pokot region, where strong demand exists from medicinal,
cosmetic, and pharmaceutical industries. In West Pokot, aloe vera harvesting has been
largely informal, dominated by black-market traders from Nairobi, leading to unsustainable
exploitation and prompting the Kenya Wildlife Service to impose a temporary ban. MARKET, POLICY AND REGULATORY
While this measure aims to protect natural aloe stocks, it has also hindered legitimate OPPORTUNITIES
investment and the development of a structured value chain. Stringent regulations, combined
with a lack of clear land-use policies and commercial-scale propagation initiatives, have
limited investor engagement. If local and national governments align regulations to support
Across the white spaces with market gaps are unable to compete effectively along the value
responsible cultivation, aloe vera could become a high-value commercial crop, offering
(covering both market and dual white spaces), chain due to business-related supply constraints
economic benefits alongside environmental advantages such as soil conservation in arid
all identified barriers to private sector SDG and institutional or infrastructural limitations. For
regions.
contributions relate to competitiveness challenges example, in Lesotho, the country relies entirely
in domestic markets, where local enterprises on the import of climate shade nets and irrigation
struggle to deliver goods and services that are equipment, which limits the adoption of new
cost-effective, high-quality and innovative. This smart-agro technologies that could improve crop
For market white spaces, there are comparatively For example, in Malawi, solid waste-to-energy
results in limited local market growth and over- production and yields. Similarly, in Angola, the
more circular economy opportunities, highlighting power plants in urban areas require additional
reliance on international markets. production of health food and food supplement is
the potential to embed circularity into core infrastructure to improve the efficiency of waste
constrained by the limited scale of the domestic
business models or to integrate circular practices collection and would benefit from incorporating
These market barriers are primarily associated market and a reliance on imported of chemical
into existing operations. informal waste pickers into cooperatives to
with supply side (47 percent) and structural (45 inputs.
support a steady supply chain.
percent) challenges. This shows that enterprises

20 21
 WHITE SPACE SPOTLIGHT
SMART MANAGEMENT AND RECYCLING
OF BIOMASS AND SOLID WASTE IN
MAURITANIA
Draft business model: Invest in the management, recovery, and processing of municipal,
livestock and agricultural solid waste, integrating technologies that enable value creation.
Recovery solutions include biogas, electricity generation, compost, building materials
and other value-added outputs.

Development need: Mauritania produces approximately 63.6 million kilograms of

livestock waste and 540,000 tonnes of municipal solid waste annually. Management and
recovery strategies remain limited across both sources.

Emerging private sector market potential: Estimates indicate that Mauritania could
generate 2.45 billion cubic metres of biogas and 14,640 GWh of electricity annually
from livestock manure, while agriculture waste could generate an additional 3.7 GWh of
electricity. For example, a local start-up founded in 2021 produces biogas from livestock
manure and agriculture waste. The company sells the product at $5 per 12 kilograms of
biogas to female-headed households in rural Bassikounou.

Market momentum: Despite the enactment of Law No. 2023-031 on solid waste
management that allows private-sector operators to recover value from waste by reusing,
recycling, transforming and any other action aimed at obtaining reusable materials
or energy from waste, this opportunity is not fully established in the market and the
operations remain at a small-scale. Emerging enterprises face several challenges:

1. Limited waste collection services and transportation networks, which increase

operational costs.
2. Limited access to financing and training in design, marketing and strategy.
3. Limited upstream waste separation by households, companies and municipalities,
which reduces the efficiency of specialized products and services.
4. Competition with established and imported goods—particularly butane gas, in the
case of biogas companies.
5. Low population density, which makes centralized waste collection logistically
challenging.

See Mauritania SDG Investor Map Narrative Report (expected before the end of 2025) for additional information
and individual references.
22 23
 Only a small share of market white spaces (9 are major obstacles to innovation and long-term
percent) face demand-side competitiveness economic growth.
barriers – situations in which consumer demand
Box 2: timbuktoo thematic and policy area
exists, but the private sector is unable to respond For example, Tanzania’s high-value leather
effectively. For example, in Malawi, only a fraction manufacturing market has been identified as a
AgriTech plays a critical role in advancing food security, improving productivity and promoting
of the off-grid population can afford stand-alone high-impact investment opportunity, supported
sustainability across Africa. By leveraging supportive policies, AgriTech can facilitate the
solar energy products. This represents a missed by the country’s abundant livestock population.
adoption of smart farming technologies, strengthen agricultural value chains and position
opportunity for both development impact and The Government of Tanzania has implemented
Africa as a global agricultural leader.
economic growth . the Leather Sector Development Strategy to
improve the quality and value addition of raw
Agricultural productivity:
Collectively, these market gaps underscore materials by modernizing tanneries, upgrading
In South Africa, the use of mechanized farming and export-oriented policies has significantly
the importance for countries to enhance their certification systems and strengthening
boosted agricultural productivity – particularly in the production of fruits, wine and grains.
domestic competitiveness by harnessing their regulatory enforcement. These policies aim to
These policies aim to support emerging farmers, improve access to land and resources and
comparative advantages. Doing so can increase address structural barriers, enhance productivity
promote innovation and technology adoption. Across countries, key initiatives have included
the efficiency and resilience of enterprises, and increase export volumes to international
land redistribution programmes, financial support schemes and investment in research
reducing dependence on international markets markets.
and development. While some progress has been made in increasing agricultural yields
and mitigating exogenous shocks – both of which
and supporting African farmers, significant challenges remain in achieving equitable land
distribution, addressing infrastructural constraints and ensuring the long-term sustainability
of AgriTech initiatives.

For white spaces with policy and regulatory gaps Ministry of Blue Economy and Fisheries. However,
(covering both policy and dual white spaces), it is hindered by the absence of supporting
more than one-third of the opportunities (38 regulations governing the production and trade of
percent) face policy and regulatory framework aquaculture products. In Mauritania, cold storage
constraints that fall entirely within the remit of the infrastructure for fish products lacks a clear legal
public sector. In some cases, the required policies framework to incentivize private operators to
and regulations exist but are not implemented or invest in commercial cold storage facilities for
enforced sufficiently (16 percent), or the available fish landings at ports. The government-owned
frameworks are outdated or not sufficiently company, Société Nationale de Distribution de
tailored to the opportunity (16 percent). Poisson (SNDP), is currently the only approved
entity entitled to receive a predefined share of
For example, in Zanzibar, the opportunity for the landed catch.
sustainable aquaculture production builds on the
Chart 11: Market Issues (number of white spaces) Blue Economy Policy, published in 2021 by the

24 25
 WHITE SPACE SPOTLIGHT
DEVELOPMENT OF LIMESTONE MINING
AND PROCESSING IN MALAWI
Draft business model: Establish an open-cast limestone quarry and processing facility
to supply domestic industries and serve export markets.

Development need: Malawi has historically underperformed in attracting foreign direct

investment (FDI), partly due to legal and regulatory barriers. The Government of Malawi
has outlined ambitious plans to accelerate economic growth and reduce poverty, including
through the development of an integrated national financing strategy. The Malawi 2063
vision seeks to achieve an average annual GDP growth rate of 6 percent and transition
Malawi into an upper-middle-income country by 2063. This vision includes a pillar
focused on strengthening the manufacturing sector, driven by vibrant agriculture and
mining industries. While Malawi’s economy has long been agro-based, the agricultural
sector alone has not generated sufficient growth to meet national development targets.
As part of efforts to diversify the economy, the government has committed to promoting
the extraction and processing of mineral resources.

Emerging private sector market potential: The global limestone market was valued at
$73.02 billion in 2019 and is projected to grow at a compound annual growth rate (CAGR) of
4.4 percent between 2020 and 2027. Increasing infrastructural developments globally is
expected to drive demand for limestone in the coming years. Currently, the African region
produces only 50 percent of its limestone requirements, with the remainder imported
from overseas. Limestone has a wide range of applications, including in agriculture,
construction, environmental protection, steel manufacturing and water treatment.

Policy/regulatory momentum: The growth of Malawi’s mining sector stands to benefit

significantly from investments in energy and transport infrastructure. While infrastructure
gaps continue to affect operational costs, legislative reforms are also under way. The
recently gazetted Mines and Minerals Bill of 2023 aims to replace the Mines and Minerals
Act of 2019 with legislation that would establish an independent regulatory authority
for the mining sector. This authority would be responsible for issuing mining licences,
inspecting operations and advising the government on policy matters related to mineral
development. Currently, long and complex procedures for obtaining permits, licences
and agreements delay projects such as limestone mining and processing, leading to cost
overruns and operational uncertainty.

See Malawi SDG Investor Map Narrative Report for additional information and individual references.

26 27
 An additional few policy white spaces (5.5 percent) need to be introduced for obtaining permits, While the government has the ability to (56 percent) are shaped by challenges at the
are faced with incoherent and inconsistent policy and overlapping mandates of various ministries independently address the framework barriers intersection of the public and private sectors.
and regulatory frameworks. For example, in (with the Ministries of Health and Finance both previously described, most policy white spaces
Eswatini, to enable pharmaceutical manufacturing in charge of granting licenses, including for
and packaging, especially for antiretroviral pharmaceutical imports), must be addressed.
therapy (ART) medicines, streamlined processes Four critical enabling environment issues emerge:

Human capital gaps Lack of incentives

(18 percent) (16.5 percent)

Some
opportunities are limited
by insufficient policy and
These opportunities face a mismatch regulatory motivators to encourage
between the skills and knowledge enterprises to enter markets and
available in the workforce and the needs achieve market growth. For example, in
of enterprises. For example, in Togo, energy Zanzibar, favourable incentives are available
efficiency services in construction and real for the real estate sector that benefit foreign
Chart 12: Public sector framework issues (number of white spaces) estate face challenges in accessing qualified investors. However, its policy environment lacks
professionals. This highlights the need for incentives to enable local populations access to
vocational training, including engagement affordable eco-friendly housing opportunities,
with the country’s diaspora, to scale these such as mortgage financing and insurance
opportunities into viable business schemes, to mitigate the risks associated
interventions. with housing financing. By only
Box 3: timbuktoo thematic and policy area incentivizing foreign investment,
the market is imbalanced.
HealthTech is a critical enabler of improved healthcare delivery in African countries, where 1. 2.
population growth and limited infrastructure heighten the need for innovative solutions.
With supportive policy environments, HealthTech can help address pressing health care
challenges by enabling digital health solutions, expanding access to services and protecting
3. 4. In these
cases, a lack of effective
patient data. partnerships between the public
and private sectors constrains enterprise
These opportunities are hindered by development. In Seychelles, for example,
Approval process for medical devices and software: In Rwanda, the Rwanda Food and
the lack of essential systems, services and public–private partnerships are needed to
Drugs Authority (Rwanda FDA) oversees the registration and approval of medical devices facilities needed by enterprises. For example, support agricultural production. The government
and software through a structured regulatory framework. The government has introduced in Côte d’Ivoire, efforts to establish eco-lodges could help by developing key infrastructure
streamlined processes to accelerate innovation, such as enabling the deployment of drone in less-developed regions are constrained through models such as Build–Operate–Transfer
technology by Zipline to deliver essential medical supplies. The approval process for by the absence of infrastructure and basic or Design–Build–Operate. Establishing vocational
HealthTech innovations in Rwanda is built a comprehensive approach that includes needs services. Regional disparities between the training centres to build capacity and financial
north and south continue to limit growth literacy among agricultural entrepreneurs could
assessments, policy formulation by the Rwanda FDA, consultations with private sector
along the value chain. strengthen the sector, and comprehensive
stakeholders and health care institutions, pilot projects to test feasibility and the creation assessments of potential crops and
of expedited review pathways. These efforts have been supported by capacity-building plantation models could support
initiatives and ongoing monitoring to ensure that policies are practical, safe and effective in more sustainable
improving health care delivery. production.

Absence of public (support) infrastructure Limited public-private collaboration

(14.5 percent) (7.5 percent)

28 29
 These challenges present key opportunities role the private sector plays in shaping a A final sub-set of white spaces with policy areas. LPG remains expensive compared to the
for public and private actors to advance shared conducive enabling environment. gaps specifically concern business models that global average. Its unaffordability limits most
objectives. They also underscore the important may be successful in some settings, such as households’ access to clean cooking fuels,
in urban contexts or for the middle class, but resulting in reduced development outcomes and
face challenges to reach those targets most in a large underserved market with unmet energy
need, especially in rural areas and low-income needs.
clients. These are opportunities characterized by
geographic and socio-economic disparities (5.5 White spaces pertaining to geographic and
percent), where there is an uneven distribution of socio-economic disparities represent critical
resources, services and opportunities between opportunities to use catalytic public support to
urban and rural communities and marginalized unlock private sector interventions for targeted
groups. development gains. By using innovative
financing mechanisms, such as guarantees,
For example, in Malawi, the use of liquefied governments and development partners can de-
petroleum gas (LPG) as an alternative energy risk investments and enable private sector actors
source for cooking and heating is viable to operate in areas that would otherwise remain
primarily for middle- to high-income households underserved.
Chart 13: Public-private interplay and geographic and socio-economic disparities Issues (number of white spaces) and is concentrated almost entirely in urban

Box 5: timbuktoo thematic and policy area

Box 4: timbuktoo thematic and policy area
EdTech is transforming learning experiences across Africa by offering innovative solutions
ManuTech is pivotal for economic development, contributing significantly to GDP and to persistent challenges such as access, inclusivity and quality. Through digital learning,
employment. Policies can promote advanced manufacturing, workforce development and teacher training and a focus on education equity, EdTech is reshaping how education is
industrial competitiveness. delivered and received.

Skills development and workforce training: In Kenya, a focus on vocational training has led Accessibility and inclusivity: In Ghana, initiatives such as iCampusGH provide online
to higher employment rates in manufacturing. Originally, the country’s manufacturing sector educational resources tailored to secondary school students – particularly those in last-
faced significant skills gap deterring its ability to leverage on industrial opportunities and mile communities who face barriers to quality education due to geographic, economic or
compete globally. The government addressed this by prioritizing vocational education training social constraints. The platform offers digital materials including e-books, video lessons and
programmes aimed at building the capacity of the workforce with relevant practical skills for interactive quizzes, which can be accessed via computers or mobile devices, helping to
the modern manufacturing processes. These initiatives involved collaboration among the overcome the limitations of traditional textbooks and classroom-based learning. To support
government, private sector and training institutions to align curricula with industry needs. the reach of iCampusGH and similar EdTech solutions, the government has introduced
They also expanded access to apprenticeships and internships, supported technology enabling policy measures. These include investments in internet infrastructure in rural areas,
transfer and strengthened workforce readiness – ultimately boosting employment and subsidized data plans for students and teachers, and digital literacy training programmes.
enhancing the sector’s competitiveness. Together, these efforts help ensure that even the most remote communities can benefit from
inclusive and high-quality learning opportunities.

30 31
 CONCLUSION

Data from the 20 SDG Investor Maps show that Frameworks (INFFs) are supporting countries to
the private sector has a critical role in advancing overcome financing challenges by strengthening
development objectives across national and policies and systems that channel financing
regional priorities in sub-Saharan Africa. The 250 towards impactful, SDG-aligned opportunities.
IOAs demonstrate the potential for economic, INFFs also enable the development of appropriate
social and environmental impact – highlighting an financing tools and mechanisms to crowd in
investment landscape that enables both financial private capital.
returns and measurable development progress.
In sub-Saharan Africa, 37 countries are using
However, structural barriers remain. As illustrated INFFs to shape financing strategies, implement
by the 53 white spaces identified across the reforms, and build the financial instruments, tools
African SDG Investor Maps, market, policy and and institutional capacities needed to mobilize
regulatory constraints continue to limit growth private sector investment. Many of these countries
in emerging sectors. This results in capital also have SDG Investor Maps, which help identify
being concentrated in more mature markets, and align investment opportunities with national
where risk is perceived to be lower, while high- development priorities. Measures supported
impact business models remain underfunded. through INFFs include blended finance models,
Country experiences captured through initiatives updated public-private partnership (PPP) laws,
such as timbuktoo underscore how enabling risk-sharing arrangements and concessional
environments – especially those that foster instruments to reduce barriers to investment.
innovation and entrepreneurship – can support Notable opportunities emerging from INFF
meaningful private sector engagement in the real implementation include, among others, the use of
economy. remittances as a strategic source of development
finance, as seen in Benin’s Government-Diaspora
To bridge investment gaps and align capital with Partnership Pact, and the application of FDI to
development priorities, key reforms are needed. national priorities, such as Tanzania’s PPP-linked
An effective interplay between public and private agriculture investments that channel private
actors is essential for unlocking transformative capital into local economic development.
investment. Integrated National Financing

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Africa Sustainable Finance Hub
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Pretoria, South Africa

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