Why direct impact investing matters now more than ever

Written by Lisa Ashford on 15th Apr 2025

This article is from the Good Guide to Impact Investing 2025, free to download here.


As we move through 2025, global uncertainty is mounting. Climate progress is stalling, funding for sustainability is under pressure, and political decisions threaten to undo hard won gains.

The UK government is questioning its support for community energy, the US is stepping back from its commitment to the Sustainable Development Goals (SDGs), and foreign aid cuts are hitting the most vulnerable communities hardest.

But while political will wavers, people-powered investment doesn’t have to wait for permission to act. Now, more than ever, investors can take control and drive change directly.

While there is uncertainty around trickle-down policies, it is possible to continue with direct impact investing that delivers results quickly through those that are on the ground.

People-powered impact investing is a constant in uncertain times

Traditional funding structures are unpredictable—foreign aid gets cut, climate funding gets deprioritised, and political uncertainty makes long-term commitments fragile.

But direct impact investing provides a way for individuals to take action immediately, investing in real projects that create lasting change without waiting for institutions to catch up.

Through direct impact investing platforms such as Ethex and Energise Africa, investors can back projects that support clean energy, fairer societies, and economic empowerment – all while seeing their impact unfold in real-time.

And unlike traditional investments, returns can start coming back from as little as six months, depending on the project.

Building a just transition to net zero – starting now

Community-led renewable energy is a cornerstone of a fair, sustainable future, and local projects have been making significant strides in creating a cleaner, more secure energy system for the UK.

These initiatives matter. They democratise energy, giving local people control over how it’s generated, stored, and shared. They lower costs, build resilience, and reduce carbon emissions. Without investment, the UK risks missing its net zero targets and locking communities out of the clean energy transition.

That’s why platforms like Ethex exist – to give people a direct route to supporting these vital projects. Right now, projects like Solar for Schools are raising finance on Ethex to install solar panels on schools across the UK.

Investors can put their money to work today, helping schools cut carbon emissions while making them more energy independent.

A smarter way to invest in global impact

The UK’s recent reductions in foreign aid, combined with the closure of USAID programs, are having devastating effects on emerging economies. Many of these countries rely on development funding to build sustainable infrastructure, improve education, and support green energy solutions.

Without this aid, progress towards the SDGs is stalling, and millions of people are being left without access to basic services and economic opportunities.

Energise Africa is helping to enable people to invest directly in solar energy projects in Africa. The platform helps everyday people to invest from as little as £50 (with the first £100 guaranteed).

An example of a project offered by Energise Africa is Altech, which provides affordable solar home systems to off-grid families in the Democratic Republic of Congo. In 2025 Altech is raising investment on Energise Africa. With backing from people like you, through the latest project nearly 14,000 families could gain access to affordable, solar energy—empowering communities while generating a financial return for investors.

Energise Africa continuously brings newly sourced opportunities, such as Altech, to UK investors. These projects not only connect off-grid communities to solar energy and reduce carbon emissions but also empower local entrepreneurs. By investing through the platform, investors are able to directly improve the quality of life for thousands of families in Sub-Saharan Africa

The US rejection of the SDGs and the need for private-led solutions

With the US government stepping away from its commitment to the SDGs, the responsibilities around who should fund sustainable projects are becoming more uncertain.

The retreat of major global powers from their commitments to sustainability makes impact investing even more critical. Without government-backed initiatives, grassroots efforts combined with matched institutional funding can take centre stage to ensure that progress towards the SDGs does not stall.

At a time when government priorities are shifting away from sustainability, people have the power to keep momentum going. By choosing to invest through Ethex and Energise Africa, individuals can bypass slow-moving institutions and take direct action—right now. Whether it’s investing in renewable energy, ethical housing, or community-driven enterprises, these platforms provide a means to drive positive change at a time when political will is faltering, connecting grassroots investors with those that still care at an institutional level.

How direct impact investing can create lasting change

Ethex and Energise Africa are committed to funding real-life projects that make a tangible difference. By investing as little as £50, individuals can help fund impactful initiatives that:

Support solar energy generation: Projects like Solar for Schools and Altech bring renewable power to underserved communities, reducing reliance on fossil fuels and promoting energy security.

Empower communities: By backing businesses that prioritise social impact, investors help create jobs, boost local economies, and support sustainable development.

Drive positive climate action: Every pound invested in renewable energy and sustainable organisations contributes to reducing global emissions and mitigating the threat of climate change.

The financial benefits of impact investing

Not only do these investments create meaningful change, but they can also offer the potential of attractive financial rewards. Many opportunities on Ethex and Energise Africa qualify for tax-free returns through the Innovative Finance ISA (IFISA), allowing investors to earn tax-free interest while supporting ethical projects. This makes direct impact investing a financially attractive way to align personal wealth with global sustainability goals.

The added benefit of direct investing is that the impact your money is creating is completely visible to you, and you can rest in the knowledge that your money is helping contribute to positive and tangible outcomes.

Now is the time to discover the power in your pocket

With ongoing political decisions threatening sustainability efforts worldwide, we believe individuals have a crucial role to play in driving progress. Ethex and Energise Africa’s mission is to empower UK investors to take charge by directly funding projects that support clean energy, fairer societies, and the SDGs. Now more than ever, how everyday people choose to invest can speak loudly and lead by example. By investing in projects on these platforms, people can turn financial capital into meaningful impact—proving that together, we can build a better, more sustainable future for all.

Visit www.ethex.org.uk and www.energiseafrica.com to find out more.

Don’t invest unless you’re prepared to lose all the money you invest.Investments offered by Ethex and Energise Africa are high-risk investments, and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Approver: Share In Ltd (FRN 603332). Approval date: 02/01/2025

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