Introduction

This report presents the evolving landscape of impact investing across 34 ecosystems where GSG Impact National Partners are active. These partners represent 46 countries and two-thirds of the world’s population. The report builds on the 2019 Transition of Impact Economies and aims to capture market maturity, capital mobilisation, regulatory developments, and ecosystem infrastructure.

Impact investing is increasingly becoming mainstream, driven by global needs around climate action, social equity, and sustainable development. The report does not rank ecosystems but serves as a learning tool to support stakeholders in adapting effective models from diverse contexts.

Methodology

Data were sourced from GSG Impact’s best practice database, National Partner self-assessments, interviews, and secondary research compiled between late 2024 and early 2025. Four pillars define ecosystem structures:

• Supply and intermediation of impact capital
• Demand for impact capital
• Government and policy
• Market-building

Ecosystem maturity is categorised as Pioneering, Diversifying, or Maturing, with development stages self-assessed by local experts. While impact investment market size is estimated for many countries, methodologies and timeframes vary. The framework is not intended for direct comparison but to signal where momentum exists.

Cross-cutting insights

National strategies are emerging

Governments increasingly integrate impact investing into development agendas. Brazil introduced a 10-year National Impact Economy Strategy. Türkiye and Zambia embedded impact investment into national development plans.

Wholesalers are expanding market capital

Wholesalers like Japan’s JANPIA and Portugal’s public fund use dormant accounts and EU funds to build the sector. Germany is developing similar legislation. These vehicles de-risk co-investment and mobilise institutional capital.

Outcome-based financing is growing

Outcome-based financing, including Social Impact Bonds, is gaining traction. Colombia mainstreamed outcome contracting in 2024. Canada mobilised USD 14.5 million via such mechanisms, impacting over 10,000 beneficiaries.

Green and sustainability-linked bonds are mainstream

Chile, Nigeria, and Belgium are notable issuers of green and sustainability-linked bonds. Private institutions in Belgium raised €500 million in 2023. Development banks in Peru issued blue and social bonds, raising USD 26.5 million.

Transparency through global standards

Adoption of IFRS Sustainability Disclosure Standards is increasing. Türkiye has mandated reporting aligned with these standards. Brazil’s securities regulator requires all listed companies to comply by 2026.

Unlocking institutional and retail capital

Pension funds in the Netherlands account for over EUR 75.5 billion in impact assets. France mandates 90/10 employee funds to allocate up to 10% to social enterprises. New Zealand is pushing to reform KiwiSaver to allow investment in private sustainable assets.

Development institutions are catalysts

Public financial institutions such as Spain’s COFIDES, Norway’s state investment arms, and Australia’s DFAT are playing active roles in scaling impact. Korea’s KOICA supports outcomes-based education funding in Sierra Leone.

Strengthening investment readiness

Capacity-building initiatives such as Ghana’s ESO Collaborative, South Africa’s Accelerate-the-Accelerator, and Israel’s venture programmes are growing. These support pipeline development and enterprise readiness for capital.

Country profiles

The report includes ecosystem snapshots from 34 countries across five regions. South Africa leads in market size with USD 44.36 billion in assets, while Zambia reports USD 618 million. Profiles cover capital sources, investment readiness, policy environments, and recent innovations.

Each profile highlights the National Partner’s role, local challenges, policy progress, and funding strategies. Several ecosystems—such as Ghana, India, and Japan—demonstrate multi-pillar alignment, while others are building foundational elements.