Emerging markets that respond to increased energy demand, the circular use of available raw materials and the deployment of EU technology offer attractive potential for impact investments. According to the International Renewable Energy Agency (IRENA)*, the African continent's energy demand will double by 2040. Therefore, the collaboration focuses on investment opportunities that efficiently produce decentralized energy with technologies such as waste recycling, waste-to-energy, biogas and biofuels.
Investment opportunities Africa
Peter Nyeko, CEO Mandulis Energy (a Ugandan renewable energy project developer), emphasizes: “The energy transition will be an essential part of infrastructure growth in Africa, especially in East Africa. It offers investment opportunities for standard technology projects and for investors who want to combine return with impact realization. The market offers room for growth. In addition, many East African industries and cities face similar challenges.”
StartGreen Capital is one of the largest impact fund managers in the Netherlands with over €450 million in assets under management. She believes that the transition to a sustainable economy is initiated by impact entrepreneurs: entrepreneurs with vision, drive and guts.
Evenpar is a specialist in project development with in-depth knowledge of project dynamics, financial structuring, technology and emerging markets.
Together they aim to invest in projects that use proven and maintainable technologies, and that rely on long-term supply agreements and creditworthy offtake contracts (with governments or industry). This approach minimizes technology, raw material, supply and off-take risks and results in good operational performance and stable cash flows in the long term. This strategy, combined with a mixed financing structure, leads to a solid financial return.
Pjotr Schade – Managing Partner of Evenpar General Partner:
“This collaboration is a power house for impact investing in emerging markets by combining the best of both worlds. StartGreen Capital is truly the champion of impact fund management, with its impressive track record and entrepreneurial approach to opportunities. This partnership allows Evenpar to focus on what we do best: developing and investing in projects with stable returns and high impact, supported by StartGreen Capital. This provides investors with competitive returns and the assurance of fund stability.”
Impact on sustainable development goals
The partnership invests with the aim of generating financial returns as well as social and environmental impact. With a combination of financial, investment and technical know-how, it finances project development support, technical guidance, technology development and training. In this way it adds value to projects that can efficiently process low-quality available raw materials into high-quality energy output in Africa. All this results in a positive contribution to SDG 7 (affordable and sustainable energy), SDG 8 (decent work and economic growth) and SDG 11 (sustainable cities and communities).