How Impact Investing Contributes to Global Prosperity
When you start investing, your primary goal is to make money. The more returns you have, the more you can invest and increase your portfolio. But what if there was a way to make a difference with your money? To help people who are struggling gain access to resources that can change their lives? Well, there is. And no, it’s not about making donations to charity—it’s about impact investing.
Impact Investing & Global Propserity
Impact investing allows you to grow your wealth while also having a social impact on developing communities. Essentially, funds from investments are provided to enterprises that have strong potential to make a positive impact on growing communities. In turn, people within the community gain access to safe water, sanitation, and other valuable resources. So, how does impact investing contribute to the global landscape? Let’s take a look.
Impact Investing Promotes Economic Growth
Impact investing supports local businesses and individuals the same way it benefits the investors themselves—it helps them grow their business. When you invest in a company or fund managed by a company with social impact goals, it gives those small businesses and individuals funds to grow their operations.
When this happens, businesses have more money to support others in their community, further expanding the local economy. And the more money an area has, the more resources it has access to. This means improved infrastructure, education, water treatment, and healthcare.
Eradicating Poverty with Clean Water Access
Most families in rural areas of developing countries have to prioritize things like food and water over going to work and earning money. They have to split their time between earning an income and collecting the basic necessities we often take for granted.
Consider this: clean water is often several hours away from the village and the only way to collect it is to walk with a bucket. That takes time away from work, school, and social activities. When clean water is locally accessible, individuals have more time to devote to benefiting their community.
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Impact Investments Encourage Gender Equality
Poverty isn’t the only social impact your investments have—they also improve gender equality throughout the globe. Caring for the family, finding water, collecting and preparing food is almost always the responsibility of the women in the community. This means they drop out of school early on to help around the house and never have the opportunity to go back.
Impact investing helps make it possible for girls and young women to stay in school and get the training they need to become doctors, teachers, lawyers, and business owners who can further improve their communities.
Fostering Resiliency and Long-Term Health
Climate change is a real threat. The more human activity grows, the more pollution and waste harms the environment. This has a direct impact on small developing communities. They lack the resources to manage when drought and disasters strike.
Through impact investing, you’ll give those communities access to the tools they need to better navigate those challenges. Their communities will become more resilient and better prepared for periods of environmental strain. And when those communities have dependable access to clean water and plentiful food, they stay healthy and contribute to local and global prosperity day after day.
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Learn how WaterEquity’s funds drive positive impact towards Sustainable Development Goals.
Discover our Experience.
Learn about WaterEquity’s experience over 25 years working with water and sanitation projects.
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Become an Impact Investor
By becoming an impact investor, you can increase your wealth in a socially responsible way and contribute towards efforts which aim to solve some of the world’s most pressing issues. Every dollar you invest helps communities across the globe become better, cleaner, and safer. Contact us today to learn more about how you can get started and make a difference in the lives of millions.