Peacebuilding 101 for Impact Investors and Legacy-Minded Businesses

Why peace should become part of your bottom line

TL;DR:

Peace isn’t just the absence of war—it’s the foundation for thriving markets, resilient institutions, and purpose-driven business. This article breaks down what peacebuilding actually is and makes the case for why it belongs at the center of impact investing and responsible business strategy. From reducing systemic risk and opening up new markets to strengthening brands, talent pipelines, and ESG credibility, peace is not just good ethics—it’s smart business.

What Is Peacebuilding?

Meet Fatima.

She’s a business owner in northern Nigeria who runs a small textile company employing young women. A few years ago, a surge of violence between herders and farmers put her community on edge. Her cousin was killed. Dozens more people also died, many more were injured. Roads were blocked. Markets shut down. Fear spread. Her supply chains were disrupted, and many of her employees—especially those from farming families—stopped coming to work. Her business was hanging by a thread.

Then a local peacebuilding organization stepped in—not with soldiers, but with peacebuilding tools. They invited youth from both sides of the fighting to sit down together—sometimes for the first time in their lives—and talk about what was fueling the violence. One breakthrough came when young farmers and herders agreed to mark out shared grazing paths that wouldn’t cut through active cropland. Elders blessed the agreement, and local officials helped enforce it. Slowly, tensions began to ease.

The peacebuilders didn’t stop there. They launched community radio shows to counter rumors, organized neighborhood watch groups that included both communities, and created new ways for people to resolve grievances without violence.

As trust began to rebuild, people started to feel safe again. Roads reopened. Markets came back to life. Her former employees returned—and with them came new applicants, including from communities that had once been divided.

Today, Fatima’s business is thriving again. She’s expanded her operations and now hires women from both sides of the conflict. She even donates a portion of her profits to the local peacebuilders who helped make it possible.

This is peacebuilding.

Peacebuilding isn’t just what happens after war. It’s everything people do—often quietly and behind the scenes—to prevent violence, to resolve it without deadly weapons, and to create the conditions for lasting peace. That includes:

• Mediating conflict before it turns violent

• Reforming institutions so they are fair, just, and accessible

• Healing wounds of past violence through truth-telling, forgiveness, reconciliation, and justice

• Building relationships between people who trust each other despite differences

• Supporting inclusive economies that reduce inequality and marginalization

As the Alliance for Peacebuilding puts it: “Peacebuilding seeks to prevent the outbreak, escalation, continuation and recurrence of violence. It is a long-term, multidimensional process that occurs before, during, and after conflicts.” Peacebuilding is about creating systems and relationships that are strong and fair enough to manage disagreement and difference without turning to violence.

And as we’ll explore next, that’s good for business too.

3 Reasons Impact Investors and Business Leaders Should Prioritize Peace:

It’s easy to think of peace as something abstract—an aspiration best left to diplomats or nonprofits. But here’s the truth: Peace is the infrastructure of the future. It’s the invisible scaffolding that supports functioning economies, stable governments, and healthy markets. When it’s absent, everything—investment, productivity, even hope—becomes harder to sustain.

Here are 3 reasons peacebuilding is a smart, strategic investment:

1. Peace Reduces Risk

Conflict is a force multiplier for risk—unraveling economies at every level.

It destroys physical infrastructure, displaces people, and triggers cascading crises in health, food, and shelter—making it impossible for people to work or businesses to function. Supply chains grind to a halt. Insurance premiums spike. Consumer demand collapses. Trade networks jam. In short, conflict doesn’t just impact one part of the economy—it shocks the entire system.

The math is simple—and staggering.

According to the IMF, in countries that have not recently experienced violence, every $1 spent on prevention policies yields $26 to $75 in long-term economic returns. In countries with a recent history of violence—often the most vulnerable to renewed conflict—the return can be as high as $103 per $1 invested. Even in countries already experiencing high levels of violence, prevention efforts still return $27 for every $1 spent.

These figures come from dynamic economic modeling that anticipates not only the immediate costs of conflict, but also the compounding losses of falling into the “conflict trap”—recurring cycles of violence and economic stagnation that can decrease GDP per capita by up to 50%. The IMF’s Dynamic Early-Warning Action Model (DEWAM) makes clear: early action, even when imperfect, vastly outperforms reactive spending. Conflict prevention isn't just a moral imperative—it’s one of the highest-return investments in economic policy today.

Seen this way, peace is the ultimate risk-adjusted return: Invest in peace, and it becomes a force multiplier for everything else you care about.

2. Peace Expands Markets

Where there is peace, there is growth opportunity.

Peace doesn’t just reduce risk—it unlocks new markets and accelerates economic potential. In post-conflict nations like Rwanda, strategic investments in reconciliation and inclusive development helped transform the country from genocidal devastation into one of the fastest-growing economies in sub-Saharan Africa. From 1995 onward, Rwanda sustained an average annual GDP growth rate of around 8%, driven by reforms that fostered entrepreneurship, improved public services, and restored social cohesion.

The World Bank notes that many fragile and conflict-affected countries have rapidly growing urban populations, expanding youth demographics, and untapped market potential. But insecurity deters the capital, infrastructure, and partnerships needed to realize that growth. When peace is established, these regions quickly become viable, investable markets—creating opportunities for both local entrepreneurs and global investors.

Peace also strengthens the institutional cornerstones that markets rely on: functioning courts, enforceable contracts, predictable regulation, and basic security. These institutions are what economists call the "rules of the game"—and they are essential for private investment to take root and thrive. Peace enables those institutions to function and fosters trust among citizens, companies, and governments.

In this way peace is not the absence of conflict—it’s the presence of investable opportunity. It’s what turns gray zones into growth zones—and sidelines into new frontiers.

3. Peace Builds Brand, Talent, and Investor Confidence

In today’s market, peace isn’t just a value—it’s a competitive edge.

Millennial and Gen Z consumers and employees are holding companies to higher standards than ever. According to Deloitte’s 2024 global survey, 86% of Gen Zs and 89% of Millennials say having a sense of purpose is important for their overall job satisfaction and well-being. And they appear willing to act on it: 50% of Gen Zs and 43% of Millennials report turning down assignments that conflict with their values (see figure below), and over 40% have turned down employers for the same reason.

The report suggests that the same values shape their buying habits. One in four Gen Zs and Millennials say they have stopped or reduced their engagement with a company due to unsustainable supply chain practices. These trends suggest that purpose-driven consumer behavior may increasingly affect bottom lines, especially for younger generations.

For businesses, contributing to peace builds reputation capital.

Companies that foster peace and social cohesion—through inclusive hiring, employee protections, and respectful workplace cultures—can build trust and loyalty among employees and communities. Research suggests that businesses influence peace not only through external engagement in fragile contexts, but also by shaping fair, inclusive, and resilient internal working conditions. While the link to market differentiation isn’t always direct, companies that are seen as ethical, stable, and socially responsible may be better positioned to earn reputational benefits that set them apart—especially in a world where values are driving choices.

Investors are catching on, too.

As environmental, social, and governance (ESG) frameworks evolve, many investors are moving toward a more rigorous, risk-based approach to evaluating companies—especially those operating in complex or high-risk environments. The OECD Guidelines for Multinational Enterprises recommend that companies undertake risk-based due diligence to identify, prevent, and mitigate actual or potential adverse impacts, including those arising in contexts with weak governance, conflict, or systemic social risks. The OECD Due Diligence Guidance for Responsible Business Conduct further emphasizes the importance of understanding geographic risk factors—such as conflict, corruption, or weak rule of law—when making operational or investment decisions.

Similarly, the Principles for Responsible Investment (PRI) encourages its signatories to integrate ESG risks into their analysis and decision-making processes, with specific attention to human rights and other systemic social issues.

While terms like conflict sensitivity or social cohesion are not formal ESG metrics, both the OECD and PRI frameworks underscore the growing importance of understanding how companies manage social risks, engage with stakeholders, and operate responsibly in fragile or frontier markets.

As a result, businesses that proactively engage communities, prevent harm, and align with local governance and stability goals are better positioned to build stakeholder trust, reduce reputational and operational risks, and strengthen their long-term resilience. The OECD notes that effective due diligence not only protects against downside risks but can also improve stakeholder relationships, strengthen reputation, and support positive contributions to society.

In short, peace isn’t just good ethics—it’s good strategy. In a world where trust, values, and transparency shape growth, contributing to peace is how companies earn their place in the future.

The Bottom Line for Business: Conflict is Cost. Peace is a Catalyst

If you're in business to make an impact, then peace is already your business. Whether you’re building solar farms in fragile states, financing fintech for the underserved, or growing ethically sourced supply chains, peacebuilding can help you do it better, faster, and more sustainably.

Fatima’s story isn’t rare. In communities around the world, peacebuilders are working alongside entrepreneurs, cooperatives, farmers, and youth to build a future worth investing in.

You can be part of that story.