This case study explores how the Impact-Linked Fund for Eastern and Southern Africa (ILF ESA)—a specialized blended finance vehicle, managed by iGravity and Roots of Impact, is working to close the $331 billion SME finance gap in Sub-Saharan Africa. By tying financial costs directly to social and environmental performance, the fund transforms impact from a passive byproduct into a powerful financial lever.
The fund operates on a transformative core principle: “the better the impact, the cheaper the capital.” By strategically pooling public and philanthropic grants, ILF ESA “crowds in” private investment, directing much-needed capital toward high-potential SMEs in critical sectors such as climate adaptation, healthcare, and agriculture.
