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Moringa Fund: Equity investment to combine agroforestry and agricultural activities
Project
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Signature date
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Location
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Multi-country Global, Benin, Kenya
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Financing tool
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Financing amount (Euro)
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5200000
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Financing details
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Equity investment of EUR 5m and technical assistance of EUR 200,000
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Customer
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Moringa S.C.A.
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Type of customer
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Company
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Project number
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IZZ1028
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco is supporting the Moringa investment fund, which finances projects combining forest plantations and agricultural activities. This combination of crops has a number of benefits, especially environmental and social benefits.
Client presentation
Moringa is an investment fund that finances sustainable agroforestry projects. It was set up at the initiative of Compagnie Benjamin de Rothschild (CBR) and the National Office of International Forests (ONFI). The first fund closing gathered public and private investors (including the Development Bank of Latin America – CAF, Spanish cooperation, and the Dutch and Finnish development finance institutions FMO and Finnfund).
Project description
The Moringa investment fund plans to invest up to EUR 100m in forest plantation projects (firewood, timber or biomass), systematically combining an agricultural component (crop growing or livestock raising). Investments will have a unit amount of between EUR 4m and EUR 10m and will target projects with a high environmental and social impact. The Investment and Support Fund for Businesses in Africa (FISEA) actively participated in structuring the fund and made a EUR 5m equity investment in its African sub-fund. FISEA is also providing financing earmarked for technical assistance in the companies invested in by the fund, in the context of the implementation of agroforestry projects.
Project impact
The combination of forestry and agricultural components creates economic, biological and social synergies. The combination of a variety of crops contributes to improving soil fertility and reducing groundwater pollution and erosion. It also provides local populations with a livelihood and diversified sources of income. In addition, the Moringa projects will allow up to 20 million teq CO2 to be stored.