Since 2019, CAFIID’s State of the Sector Reports have tracked the evolution of Canada’s impact investing in emerging markets and developing economies (EMDEs). The 2019 report coincided with major milestones, including the creation of FinDev Canada, the launch of the 2X Challenge on gender-lens investing, and the introduction of the International Finance Corporation’s Operating Principles for Impact Management. Global Affairs Canada (GAC) also introduced blended-finance mechanisms through the Equality Fund and the International Assistance Innovation Program.

The 2025 State of the Sector Report provides an updated snapshot of Canada’s impact investing activity in EMDEs, highlighting key trends, gaps, and growth opportunities. It identifies barriers and practical actions needed to mobilize more private capital, strengthen the ecosystem, and build bridges between Canadian investors and emerging market opportunities.

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