Our thesis
The Youth Bulge and Climate Change call for the next wave of Green Businesses in Africa!
Africa’s population is expected to reach around 2.3 billion by 2050 with rapid population growth. The youth population is expected to reach over 830 million, by 2050. This will result in 15 million new workforce per year in Africa by 2050, with an average of 11 million per year in the next decade.
This youth bulge is further compounded by the impact of climate change on Agriculture (food security), Energy and Basic Services; which will be essential drivers of the long-term economic growth required to absorb this growing and youthful population. The World Meteorological Organisation recorded more than 1,300 climate-related natural disasters in Africa from 1970 to 2012, which claimed 700,000 lives and caused economic damage worth $26.6bn.
Ghana, like the rest of Africa, has an imperative need to develop businesses that will provide much needed jobs, improved livelihoods and economic growth in a climate-resilient context.
The Youth Bulge and Climate Change call for the next wave of Green Businesses in Africa!
Africa’s population is expected to reach around 2.3 billion by 2050 with rapid population growth. The youth population is expected to reach over 830 million, by 2050. This will result in 15 million new workforce per year in Africa by 2050, with an average of 11 million per year in the next decade.
This youth bulge is further compounded by the impact of climate change on Agriculture (food security), Energy and Basic Services; which will be essential drivers of the long-term economic growth required to absorb this growing and youthful population. The World Meteorological Organisation recorded more than 1,300 climate-related natural disasters in Africa from 1970 to 2012, which claimed 700,000 lives and caused economic damage worth $26.6bn.
Ghana, like the rest of Africa, has an imperative need to develop businesses that will provide much needed jobs, improved livelihoods and economic growth in a climate-resilient context.
The Missing Middle Challenge
In spite of the urgent need to develop the next wave of green businesses, there is a lack of appropriate funding for early-stage green businesses and a funding gap for early-stage businesses in general, known as the “Missing-middle” of finance.
Key Challenges for Existing Financiers
- Short investment horizon
- Small ticket size
- High cost of funds
- Lack of collateral
- Slow capital deployment
- High transaction costs
- Perceived higher risk
- Inadequate cash flow
Our thesis
An investment company that has been designed to meet the needs of early-stage green businesses regarding the size, type and tenor of financing, as well as business support, with a sustainable structure that reduces the risks to the investors of such an investment vehicle.
We have been able to deploy the following three (3) innovative levers due to the catalytic role of the Ghana Climate Venture Facility which provides:
Operational subsidies to cover the set-up costs of the investment company.
GHS 1 million of dedicated technical assistance grants to de-risk investee companies.
GHS 10 million in Catalytic First Loss Capital to private investors in investment company to provide risk mitigation
Our Proposition
We provide a valuable opportunity for impact investors, corporates and high net worth individuals
to partner a unique company and provider of long-term funding in local currency.
Wangara’s investment focus is dedicated to early-stage green businesses in Ghana.
We use investment instruments and long-term environmental, social, and governance impacts.
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Investment Capital
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Grants
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Investment Company
