Impact Investing: A Tale of Two Undervalued Geographies 🧩💰

As an impact investor, I've had the privilege to uncover parallels in unlikely places. A recent tour in Baltimore unearthed striking resemblances to the narrative of Africa in the world of impact investing, both are bubbling with undervalued potential.

The commonality lies in the misconceptions that cloud the reality of opportunity. In Africa, as well as in the heart of Baltimore, there exists a chronic undervaluation of worth. Entrepreneurs across Africa face staggering interest rates and restrictive financial conditions that unjustly prevent them from benefiting from their own soil. Likewise, Baltimore, with its pockets that could easily rival the sophistication of Boston or Bethesda, remains overshadowed by its larger metropolitan neighbors.

Despite its proximity to powerhouses like Washington D.C., Philadelphia, and New York City, Baltimore is often overlooked by investors. During my tour, I discovered areas that were reminiscent of the most affluent parts of any major city, yet tucked away, as if hidden gems within the urban tapestry. This is not dissimilar to the innovation hubs emerging across Africa, often invisible to the global investment community.

What’s essential to understand is that both Africa and Baltimore present compelling opportunities for impact investment. In Baltimore, like in Africa, the potential for sustainable development. For example in Africa, substantial returns exist in abundance in the agriculture, tech, and energy sectors. In Baltimore, there are ample opportunities in tech, real estate, and the start-up ecosystem. With Entrepreneurs Baltimore Meat the Mushroom, landing two sharks on Shark Tank, or the remarkable rise of Flutterwave, a Nigerian fintech giant valued at over USD 3 billion, Baltimore and African startups are showcasing their immense potential and lucrative opportunities for investors.

Investing in undervalued regions, be it a recovering city like Baltimore or an entire continent on the verge of an economic boom like Africa, is not just about tapping into unexplored markets—it's also about creating impact. It's an investment in social upliftment and economic empowerment. By recognizing the intrinsic value and fostering growth in these areas, we also contribute to a more balanced and equitable world economy.

The prospects in both locations are ripe. In Baltimore, there are initiatives aimed at revitalizing communities and nurturing local businesses that seek to transform the cityscape. In Africa, entrepreneurs are ready to scale ventures that can redefine market landscapes and enhance quality of life.

As stakeholders in global and local economies, our call to action is clear. We must reassess and redefine value, looking beyond the surface to the undercurrents of potential that run deep. Impact investing is a tool of transformation, and places like Baltimore and Africa are the canvases upon which this change can be most vividly painted. Speaking to investors in both these regions like Future Africa, LoftyInc Capital, T. Rowe Price, and Ignite Capital, it reaffirms my opinion of investments to under-invested regions.

The time is now to align our investment foresight with opportunities that promise growth for both the investor and the community. Let's not just change the narrative for Africa and Baltimore but rewrite the economic stories of under-invested regions everywhere. Investing here and now is not just an act of faith in these communities but a strategic move towards a more inclusive and prosperous future for all but to each be their own.

Don't you wish you invested in Apple in 2000s?

"Be fearful when others are greedy. Be greedy when others are fearful"​ - Warren Buffet