Emerging Capital Partners, a Pan-African private equity specialist, has signed a co-operation agreement with the International Finance Corporation (IFC) to participate in its Private Equity Africa Climate Change Investment Support program. ECP is the first private equity firm to participate in the program.
The program, funded by the Norwegian Government, is designed to enhance sustainability best practices in Africa. Through the program, the IFC works with private equity fund managers and provides advisory services in Sub-Saharan and North Africa by identifying resource efficiency and other sustainability-related cost-savings opportunities, in this instance for Emerging Capital Partners’ Pan-African Fund portfolio companies.
Commenting on the announcement, Namita Shah, Head of Environmental, Social and Governance (ESG) at ECP, says: “At ECP, we believe that building sustainable processes, products and services results in greater efficiency and better financial returns for our portfolio companies. It is for this reason that we became signatories to the United Nations’ Principles for Responsible Investment in 2010, and why we have announced our co-operation agreement with IFC’s PEACCHIS program.”
Cecilia Bjerborn, IFC Program Manager, adds: “Increasing local and global regulations, rising prices of raw materials and supply shortages mean that businesses are starting to explore sustainable practices and solutions to outperform their competitors. At the same time, private equity funds are in important source of financing for small and medium enterprises in Africa. By working with IFC on this program, Emerging Capital Partners helps to improve efficiencies in their portfolio companies through sustainability related improvements. ”
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector and one of the largest investor in private equity in emerging markets. IFC’s Sustainable Business Advisory Services in Sustainable and Inclusive Investing aims to mobilise institutional capital into sustainable and inclusive equity investment funds and indices by helping companies articulate, investors to recognise, and markets to reward sustainable and inclusive business practices.
