Progress revealed in EU-supported impact funds in Eastern Europe, as outlined by Impact Europe.
The EU-backed Collaborate for Impact initiative has made significant strides in promoting social investment and enhancing sustainable development in Armenia, Georgia, and Ukraine. Impact Europe, the driving force behind the project, is leveraging its in-house expertise and knowledge, as well as that of its members, to pursue similar ventures in other regions.
The initiative has catalysed a total of €2.2m in social investment, with EU funding of €1.2m serving as a catalyst for an additional €1m. This investment has taken various forms, including grants, blended finance, and low-interest loans, and has been directed towards a total of 91 social enterprises. Over 250 enterprises have also benefited from non-financial support.
One of the key aspects of the initiative has been engaging stakeholders through events like the annual Impact Week and offering further learning opportunities and mentoring. Engaging with national and local authorities to promote impact investing has also been a crucial part of the work of Impact Europe and its national partners.
The social impact funds established through Collaborate for Impact have invested in various social enterprises addressing local challenges. For example, in Armenia, the VIA Fund has supported Caritas Aregak Foundation, an organisation working on social inclusion and poverty alleviation. In Georgia, the Actio Impact Fund has backed Tene, an enterprise focusing on youth employment and education. The Ukrainian Social Venture Fund (USVF) has invested in Museum in the Dark, a social enterprise offering experiences for visually impaired individuals.
While the exact details of the investments and outcomes of the Collaborate for Impact social funds are not explicitly described, the initiative evidently supports social innovation across various sectors. It focuses on independent media strengthening, community-driven sustainability projects, health access improvements, and climate resilience. These contributions align with broader EU goals of fostering democratic resilience, sustainable development, and social inclusion in the Eastern Partnership region.
The sector is still often viewed as akin to charity rather than offering investment opportunities in the region. However, the success of the Collaborate for Impact initiative demonstrates the potential for social impact funds to drive sustainable growth and social innovation. The initiative is currently in talks with the EU over renewing it, and Impact Europe is looking at possible similar initiatives in central Asia and sub-Saharan Africa.
In addition to the Collaborate for Impact initiative, Impact Europe is part of a project tackling UK digital and financial exclusion with the People's Partnership and Good Things Foundation. For every €1 spent on stakeholder engagement, over €5 found its way to the local funds, indicating the effectiveness of the initiative's approach. The initiative has also attracted funding from a variety of sources, including financial institutions, foundations, and individual donors.
[1] European Union for Independent Media (EU4IM) - https://www.eu4media.eu/ [2] Social Innovation Fund Ireland - https://www.sif.ie/ [4] Learning Network for Countries in Transition - https://www.learningnetworkcitu.org/ [5] Georgia Climate Change Alliance - https://www.georgiacca.org/
- The social impact funds derived from the Collaborate for Impact initiative have demonstrated the potential for financial inclusion in the Eastern Partnership region, as they have successfully driven sustainable growth and social innovation, particularly in the sectors of independent media strengthening, community-driven sustainability projects, health access improvements, and climate resilience.
- Recognizing the significance of the Collaborate for Impact initiative in promoting social investment and enhancing sustainable development, Impact Europe is currently discussing a renewal with the European Union and exploring potential similar initiatives in central Asia and sub-Saharan Africa.
- Impact Europe's project addressing UK digital and financial exclusion, in partnership with the People's Partnership and Good Things Foundation, proves the effectiveness of its approach, as every €1 spent on stakeholder engagement resulted in over €5 reaching local funds, showcasing the potential of such projects in creating a tangible impact on development finance and promoting financial inclusion on a larger scale.
