eco.business Fund receives €85m for biodiversity conservation in Latin America and sub-Saharan Africa
07-04-2021 09:12:00 | by: Pie Kamau | hits: 695 | Tags:

The eco.business Fund received an investment of €85 million from its strategic partner, the German Federal Ministry of Economic Cooperation and Development (BMZ) via KfW Development Bank. The investment will contribute to the fund’s mission of conserving biodiversity, promoting the sustainable use of natural resources, and mitigating and adapting to climate change in Latin America and sub-Saharan Africa.

The BMZ and eco.business Fund have joined forces for positive environmental impact since the fund’s establishment in 2014. The fund employs a blended finance structure to mobilize private investments for sustainable development by leveraging capital from impact-oriented public entities such as the BMZ. €62 million of the capital will be invested in Latin America and the Caribbean, while the remaining €23 million will go toward sustainable production and consumption practices in sub-Saharan Africa. In addition, the BMZ has provided €1 million and €2 million for capacity-building activities through the fund’s Development Facilities in Latin America and sub-Saharan Africa, respectively, for technical assistance to augment the impact of the fund’s investments.

To date, the eco.business Fund has assets under management of €398 million. It has contributed to over 270,000 hectares of farmland under sustainable management, and 8.3 million tons of CO2 stored by agroforestry activities. After more than five years of generating positive environmental impact in Latin America, the fund’s expansion to sub-Saharan Africa at the beginning of 2020 aims to replicate and scale this success in another region where people and the ecosystems that support them are especially vulnerable to the effects of climate change.

Dr. Jens Mackensen, Chairperson of the Board of Directors of the eco.business Fund, stated: “We are grateful for the strong partnership of BMZ over the years. Their continuous support shows a deep commitment to our shared goal of pursuing more sustainable business practices in some of the world’s most biodiverse places, and even more so now as businesses struggle financially to preserve their operations in light of the COVID-19 crisis. This new boost of capital will go a long way in greening the economies in both Latin America and sub-Saharan Africa in these turbulent times, while promoting biodiversity conservation in both regions.”

Parliamentary State Secretary Norbert Barthle, stated: “The eco.business Fund has proven effective as a vehicle for generating positive impact in some of the world’s most biodiverse regions. Protecting biodiversity and ensuring the responsible use of our planet’s rich natural resources are key priorities for the German Ministry for Economic Cooperation and Development. We are proud to have been supporting this innovative fund from the beginning. It is our conviction that communities, countries, industries, and investors must all join forces if we are to achieve sustainable development.”

www.ecobusiness.fund