Locations
The Africa Sustainable Finance Hub
Africa Green Business and Financing Initiative
Making green financing a reality for Africa's transformation
About AGBFI
To advance the role of the private sector engagement in climate action and the growth of the green economy, the United Nations Development Programme (UNDP) Africa Sustainable Finance Hub (ASFH) is championing the Africa Green Business and Financing Initiative (AGBFI) to enable the development of green businesses and financing models and increase their contribution to the green transition in Africa.
Priorities
Focusing on the African context, we aim to:
Promote and enable the development of green business and financing
Increase the role of the private sector in the green economy, climate action, and biodiversity
Work closely with countries to develop country action plans for boosting green growth
Milestones
Case Studies
The Africa Green Business and Financing Report focuses on ‘green’ sectors that UNDP believes are of the utmost strategic importance for the continent, including renewable energy, water and related infrastructure; sustainable agriculture and food production; forestry and nature-based solution; eco-tourism; and a broad sector called technology and next-generation solutions. The report also explores case studies from each of these sectors.
M-KOPA is an asset financing platform providing services to the underbanked in multiple markets in Africa; a multifaceted entity, blending elements of a marketplace, credit platform, and analytical engine.
Key learnings:
- Business model bypasses the costs and credit risk barriers involved in physical payment collection systems, allowing greater affordability/access
- Enabling access to a great variety of products through single marketplace
- Credit services for unbanked people
- Network of on-the-ground agents
More Info:
Sistema. Bio is an impact-focused company dedicated to addressing waste management, food security, and affordable energy working across Africa.
Key learnings:
- Tech-focused and high modular product tailored for the local market.
- Innovative solutions for affordability.
- Strong customer support and training.
- Efficient use of a diverse pool of capital.
- Considerable use and leverage of data.
More Info:
- Convergence, 2021, ‘Sistema.bio’ (link).
- Sistema.bio, 2023, ‘Sistema.bio - The biodigester solution’ (link).
The Noor Ouarzazate Solar Complex in Morocco is the world’s most extensive concentrated solar power plant (CSP) with a collective installed capacity of 580 MW
Key learnings:
- Key role of concessional funding.
- Efficient use of public institutions to improve project credit profile.
- Standardized replicability.
More Info:
- Africa Development Bank, 2021, Morocco noor ouarzazate solar complex project (link).
- ESFC Investment Group (2021). Noor Ouarzazate: the world's largest concentrated solar power plant built in Morocco (link)
- Global Infrastructure Hub, 2018, ‘Noor Ouarzazate, I - Concentrated Solar Power Plant’ (link).
- Nsenergybusiness.com, 2019, ‘Noor Midelt Solar Power Project, Morocco - NS Energy’ (link).
- Santamarta, J., 2013, ‘Noor Ouarzazate Solar Complex in Morocco, World’s Largest Concentrated Solar Power Plant,’ HELIOSCSP (link).
There are several successful examples, such as Ol Pejeta Conservancy, South African National Parks (SANparks), the Phinda Private Game Reserve, and Borana Lodge, that show how ecotourism has great potential to raise awareness of the African continent’s rich cultural heritage and natural resources while simultaneously providing vital funding to its communities by creating jobs and different sources of revenue.
Key learnings:
- Ecotourism as a local-focused holistic and multidisciplinary business development opportunity.
- Use of multiple sources of capital.
- Development of the right supportive infrastructure environment.
- Effective combination of nature and technology.
- Management of multiple nature areas under one single entity.
More Info:
- Ol Pejeta Conservancy (2022). Annual report (link)
- SanParks (2022). Annual Report (Link)
- The Long Run (2022) Accelerating Change in Your Organisation, Landscape, Communities, And Beyond (link)
- &Beyond (2022). &Beyond Phinda: Private Game Reserve (Link) & Phinda Private Game Reserve (link)
The Kigali Bulk Water Supply project is developing, designing, financing, constructing, and operating 40,000m3/day Bulk Water Facility located south of Kigali, Rwanda.
Key Learnings:
- Flexible institutional framework supported by capacity building.
- High replicability potential using the PPP structure
- Alignment with government policy.
- Use of a results-based planning framework for efficient monitoring.
- An iterative blended finance approach
More Info:
The Hongera Reforestation Project is a large-scale carbon offsetting project in Kenya, with a primary goal of mitigating carbon emissions.
Key Learnings:
- Efficient use of different carbon instruments.
- Right balance between short- and long-term incentives.
- Substantial focus on local training.
- Diversified source of funding with private capital involvement.
- Replicability.
More Info:
- DGB Group (2021). ‘DGB Group - Kenya Reforestation Project’ (link).
The digital era offers many new innovations and breakthroughs that have the potential to bring the African continent to advance its agricultural economic and social development, as showed in a list of successful and impactful examples of innovative agritech companies including Apollo Agriculture, Pula, and Aerobotics.
Key Learnings:
- Efficient use of new technologies
- Combination of agritech and financial products
- High replicability potential
- Considerable use and leverage of data
More Info:
