Norfund to scale up investments in manufacturing, agribusiness in East AfricaFebruary 5, 2020
NAIROBI, Kenya, Feb 5 – Norfund has announced the launch of its strategy in East Africa for the next three years, which includes scaling up investments in the manufacturing and agribusiness sectors.
The firm’s strategy also includes a new investment pillar on green infrastructure, including waste management, access to clean water, transmission lines and power storage.
Norfund has been investing in East Africa for over 20 years with investments in clean energy constituting almost 40 percent of its portfolio in the region.
Some of Norfund’s investments include projects such as Globeleq, Lake Turkana Wind Power, Bujagali Hydro Power and M-KOPA.
Last year, the company committed over Sh9 billion in East Africa and is expected to increase its commitments significantly in the next few years.
“We are incredibly proud of our committed portfolio of Sh77.8 billion in over 520 companies in East Africa. The capital deployed has transformed millions of lives through employment, access to finance and clean energy. The launch of our new strategy will provide a framework for greater partnerships and impact across East Africa,” said William Nyaoke, Regional Director, East Africa, Norfund.
The World Bank estimates that about 2.01 billion metric tons of municipal solid waste are produced annually worldwide and overall waste generation will increase to 3.40 billion metric tons by 2050.
An estimated 13.5 percent of today’s waste is recycled and 5.5 percent is composted.
Between one-third and 40 percent of waste generated worldwide is not managed properly and instead dumped or openly burned. This continues to pose serious risks to the ecosystem and human health.
The new green infrastructure pillar which includes investments in waste management will complement Norfund’s existing investment focus areas.
The fund targets to execute 6-10 new investments focusing on business models in solid and liquid waste management, access to clean water, electricity transmission lines and power storage.
“We want to address urbanization challenges. The waste industry needs to professionalize and scale. We are one of the first development finance institutions to focus on waste management. We’ve started to see exciting new business models in the sector, built on circular economy principles. Effective collection, recycling and waste-to-energy is great for both societies and the environment. With the right investment in the right places it will also be an exciting business category and employment generator for decades to come,” Tellef Thorleifsson, CEO, Norfund said.