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NCDFGroup: Our Impact

At NCDFGroup, impact lies at the core of our endeavours. Discover how we define impact, our areas of focus, and the organisational learning that propels our mission forward.

Defining Impact

Impact is the essence of our work. Our strategic objectives revolve around supporting productive, sustainable, and inclusive development. To achieve this, we have developed a world-class impact management approach.

Managing Impact

Our aim is to maximize impact across all our initiatives. From setting clear objectives to monitoring progress and responsible exit strategies, impact management permeates every step of our investment process. We are committed to learning from each investment, ensuring adherence to the Operating Principles for Impact Management—an international standard of which we are a founding signatory.

Measuring Impact

A Comprehensive Framework for Sustainable Assessment

Our Impact Framework serves as a consistent tool to articulate and assess expected impact, measuring six dimensions of impact and aligning with the industry-consensus dimensions of impact set by the Impact Management Project.

Assessing Potential Impact

Impact-Driven Investment Approach with Tailored Sector Frameworks

For every potential investment, we translate our Impact Framework into an 'Impact Dashboard.' This comprehensive tool defines expected achievements, assesses impact across six dimensions, and links investment impact to the Sustainable Development Goals. Additionally, we have developed specific impact frameworks for each priority sector we invest in.

Monitoring and Evaluation

We rigorously monitor each investment's performance against its Impact Dashboard and update its Impact Score based on our ongoing evaluation. This approach ensures that we are consistently aligned with our strategic impact objectives and enables us to report on our portfolio's aggregate impact score publicly.

Driving Inclusive Outcomes and Sustainable Growth

At NCDFGroup, our commitment to fostering sustainable and inclusive businesses extends to championing gender equality and advancing diversity and inclusion. Recognizing the obstacles faced by women in our markets, we leverage our role as investors to bridge gender disparities and showcase the social and economic value of investing in women. Our focus spans across various roles women play as leaders, employees, entrepreneurs, suppliers, customers, and community members. Over the next five years, we have set a target for 30% of all new investments to meet the criteria of the 2X Challenge, aimed at empowering women's economic development. Additionally, we aspire to enhance diversity outcomes by increasing the representation of black African-owned and led businesses in our sub-Saharan Africa portfolio.

In line with our commitment to long-term growth and economic development, we prioritize building resilient businesses with robust environmental, social, and governance (ESG) practices. Collaborating closely with our portfolio companies, we provide hands-on support to help them achieve sound ESG standards. Adhering to our Policy on Responsible Investing, based on IFC Performance Standards, we work with investees to develop practical plans for meeting these standards within a reasonable timeframe. We also employ a risk-based approach to focus resources on investments based on potential ESG incidents and our ability to add value. Moreover, we conduct regular training programs on ESG matters for investors and companies and offer an online ESG Toolkit to promote best practices across the industry.

Fostering Sustainable Growth and Development

Net-Zero Climate Transition: Inclusive Growth and Financial Commitments

Addressing the urgent global challenge of climate change, we are dedicated to assisting the countries where we invest in transitioning towards net-zero emissions by 2050 in a socially just manner. With a focus on supporting clean, inclusive, and resilient growth, our Climate Change Strategy aligns with the pillars of the Task Force on Climate-related Financial Disclosures (TCFD) and the Paris Agreement. Over the next five years, at least 60% of our total new commitments will be in climate finance, making us a significant investor in Nigeria. 

Resilient ESG Commitment

Empowering Businesses for Sustainable Impact

We are committed to building resilient businesses with robust environmental, social, and governance practices. Our Policy on Responsible Investing ensures that our investees comply with our standards, supporting them to enhance their practices. Moreover, we actively seek to add value to our portfolio, offering expertise and resources to enhance commercial performance and development impact, particularly focusing on gender, diversity, inclusion, and climate change.