Africa - Investment opportunities with Leapfrogging effects

Africa is one of the fastest growing economic regions in the world, hosting more than half of the world’s 20 fastest growing economies (according to IMF GDP data). This opens the potential for innovative solutions to pave the way forward to an environmentally and economically sustainable future. While such investments bear sizeable financial reward, certain misalignments currently limit their feasibility. These include gaps in the business culture between local entrepreneurs and foreign investors, a lack of governance, and the necessity to clarify processes.

GreenTec Capital Partners views risk management as a core part of its business model. We believe it to be our source of competitive advantage as well as the pathway to long-term growth sustainability. While utilizing a more qualitative approach based on investment criteria today, we are dedicating resources over the next 2-3 years towards the implementation of a full-fledged data and research oriented, quantitative Enterprise Risk Management (ERM) model.

Focusing on Africa also maximizes the impact of innovative solutions by using the Leapfrogging effect: “jumping” from an outdated technology level to the latest one, skipping generations in between, adding the largest financial, environmental, and social value. One example quoted in the 2015 Africa progress report is the “energy leapfrog”: Avoiding the high carbon trajectory that most developed countries have followed, Africa’s energy systems can leapfrog onto low-carbon pathways where renewables replace fossil fuels, becoming the global leaders in low-carbon development.

African entrepreneurs - source of growth and direct impact, 

Increasingly, individuals and institutions want to invest in startups and SMEs that generate both profit and non-financial values. GreenTec Capital Partners specializes in companies that generate profit and have a lasting positive impacts on both the environment and local populations in Africa. We join forces with our portfolio companies founders and work to grow their business, to inspire their community by demonstrating that entrepreneurship initiatives in Africa can lead to lasting economic, social, and environmental impacts in Africa. 

We choose our partner carefully, taking above all impact, scalability, profitability, and especially teams into account. By pre-selecting companies with a good outlook and providing them with personalized long term support within our senior team, our projects boast enhanced financial returns and reduced risks, on top of their measurable positive environmental and social impacts.