via unep.org

With the release of “Global Trends in Renewable Energy Investment 2011” from the UN Environment Program, many publications are lauding the $211 billion worth of global investment in renewable energy in 2010. The impact investing industry contributed to that number. This week, we looked at articles discussing the rising amounts of capital invested in clean tech and renewable energy, especially in developing countries.

“For The First Time, Developing Countries Spending The Most On Renewables” by Michael J. Coren via Fast Company 
In 2010, developing countries propelled themselves “toward a future powered by clean renewables” like solar, geothermal, and wind “in parts of the world where they are often the only source of power available.” In 2010, “investors poured a record $211 billion into renewable energy in 2010… a 540% rise since 2004,” according to the new UNEP report. It’s remarkable that countries like Kenya, Pakistan, and Argentina are beginning to increase their energy accessibility, specifically with renewable energy. If our neighbors in the developing world can afford renewable energy, surely the developed world can do the same, especially considering that “the price of PV solar per megawatt has dropped 60% since mid-2008.”

“Renewable Energy Investments Set New Record, Up 32% in 2010” by Andrew Burger via Triple Pundit
Further to the fact that $211 billion was invested in renewable energy in 2010, $72 billion was invested in “faster-growing developing economies.” Notably, renewable energy investments were highest in China at $48.9 billion, followed by “$13.1 billion in South and Central America… $5 billion in the Middle East and Africa… $3.8 billion in India…. $4 billion in [other] Asian developing countries.” In addition to capital, research and development expenditures on renewable energy have increased globally. A combination of government policy and private equity are contributing to the electrification of rural markets along with sustainable economic development.

“A research revolution to save the planet” by Jonathan Glennie via The Guardian UK
The world is approaching the 7 billion population mark and global energy demands are increasing. At a climate change workshop held by the Asia Europe Foundation, Shell argued that “the world will need to be producing about twice as much energy in 2050 as we are today,” while lowering carbon emissions simultaneously. The obvious solution is clean tech, the only problem is the high expense when compared to dirty energy. Research and development propels technological advances and “if we were to invest more [in clean technology], progress would be rapid. It is the difference between having 1,000 university working on a problem instead of 100.” Developing countries have had the smallest impact on the environment, but are now adopting clean technology faster than the damaging, developed countries because any changes in the environment will dramatically affect their citizens. Consider India, where “300 million people live by the coast – a rise in sea level matters.” Investment in clean technology will proactively prevent poverty caused by climate change and actively combat poverty by increasing global access to energy.

“Unlocking investment in Africa: could private equity be the key?” by Yingni Lu and John Battersby via The Africa Report 
More and more private equity funds are looking for African investments. In addition to less competition and good deals, African investments have significant potential for social impact, which appeals to impact investors like us. Additionally, “the average Africa fund performs as well as average global funds,” which appeals to investors of all types, whether impact driven or not. Investors and governments are seeking to utilize the growing investment in renewable energy for sustainable economic development. For example, South Africa has vowed to reduce carbon emissions with a set “target of 42% of new electricity generation to be met by renewable energy sources such as solar, wind, and wave-generation by 2030.” With a combination of government policy, foreign direct investment, and private equity, South Africa’s goal is very possible.

“Unprecedented success in Beijing paves avenues for impact investment” by Kevin Short via New Ventures 
In the impact investing industry, it is often difficult to match entrepreneurs with the right impact investors and vice versa. New Ventures hosted an Investor Forum in China last month centered on “the region’s development towards becoming a vibrant hub of environmental entrepreneurship.” Social entrepreneurs came together to present and discuss business models and to connect with impact investors. The Investor Forum attracted many different types of clean tech businesses and “marked the intersection of environment and development in China.” New Ventures is responsible for connecting Chinese environmental entrepreneurs with $150 million in capital from impact investors. Following the success of the Investor Forum, “New Ventures is now considering facilitating creation of a China-based impact investment fund that directly targets SMEs in the environmental sector.” China will continue to lead the way as an example of increased investment in clean tech in the years to come.

At ID, we often discuss the benefits of mobile phones for those at the Base-of-the-Pyramid. Access to mobile phones is proven to increase financial inclusion and accessibility to basic goods and service. This Weekly Review examines the benefits of mobile phones specifically for migrant workers.

Cairo's Tahrir Square during the Revolution via Wikimedia Commons

After the Egyptian Revolution of 2011, a man named his daughter “Facebook” in honor of the site’s mobile app and the role it played. On Twitter, #jan25 was trending for weeks, as Egyptians tweeted from their phones to report on the protests. Despite the government’s best efforts to cut off communications, protesters were able to organize through mobile technology. It’s clear that few places in the world have experienced such a dramatic impact of social networking and mobile technology, but why this happened and what will happen next are less apparent.

Tomorrow, South Sudan becomes the newest country with their declaration of independence. At ID, the newfound independence sparked a conversation. We discussed social enterprise in post-conflict areas, and found that social enterprise will be and has been effective in South Sudan and throughout other conflicted areas in the world.

via Afrographique

“Mobile phones in Africa” by Ivan Colic via Afrographique 
We recently came across the blog Afrographique by Ivan Colic. Colic collects data from reliable sources like the World Bank or the IMF, and presents the information in aesthetically pleasing and easy-to-understand format. Check out his site to see many more colorful and informative infographics to gain some insight on Africa and its people. His most recent post tells us that “in 2011, there are 32 non-smart phones for every 1 smart phone” in Africa. By 2015, the gap will close slightly to “5.6 non-smart phones for every 1 smart phone.”

“Activate 2011: Mobiles look set to play a big role in Africa’s development” by Madeleine Bunting via The Guardian
At the current growth rate, everyone in Africa will have a mobile phone by 2020 (Praekelt Foundation). Relatedly, economic development in Africa is expected to rise dramatically over the next five to ten years. Mobile phones will lend themselves to significant economic and social development and “the race is on to find what mobiles can do in areas as disparate as public health, governance and education.” Mobile money and Internet access are perhaps two of the most significant development leaps made possible in rural areas where banking and educational services are limited. Bunting describes many other examples of the benefits of mobile phone penetration in Africa, even if the most popular phone is the basic Nokia with nothing fancier than SMS capabilities.

“Mobile banking services to help two billion people by 2020” by Fredrick Onyango via Business Daily Africa
A recent Boston Consulting Group study reports that mobile money services will provide financial inclusion for two billion people by 2020 and drive development in emerging markets, especially Africa. Financial inclusion fosters “entrepreneurship, new business creation and new jobs.” The report found that the need for mobile money is great: “some 72 per cent of the population in developing countries are without access to banks or credit cards.” Many mobile money services are leading the way for social and economic development, including most famously M-PESA and our own portfolio company, SlimTrader.

“Teachers to Receive Salaries Via Mobile Money in Rwanda” by Bosco R. Asiimwe via Mobile Money Africa
Africa is notorious for slow-moving money. In an effort to pay teachers on time, the Teachers’ Credit and Savings Cooperative – Umwalimu SACCO will employ mobile money transfer services to pay their staff. In the past, teachers had to make long, expensive, and time-consuming journeys to collect their paychecks. This is another example of a simple solution with mobile phones that saves a lot of time, effort, and money that can now be spent elsewhere. The article notes that some teachers may invest in solar panels with their savings.

“Mobile money coming to Ethiopia” via Mobile Money Africa
M-Birr is the newest mobile money service provider in Africa, finally bringing services to Ethiopia. M-Birr’s parent firm is NCL Technologies, an Irish company. The government has historically controlled Ethiopia’s ICT industry. Late last year, the Ethiopian government hired France Telecom to manage the newly restructured Ethio Telecom. Ethio Telecom is the only ICT provider in Ethiopia, the country with the fifth-fastest growing economy worldwide according to The Economist. Ethiopia’s mobile subscriber base is growing and the government is investing in national infrastructure to facilitate and meet the demand for mobile technology including Internet access and mobile money services like the ones offered by M-Birr.