Conservation finance

The conservation and development finance gap coupled with a lack of opportunities for private investors in sustainable nature- based economic models.

Conservation Finance

There is a demonstrable growing interest in conservation finance in the mainstream financial and other assets class markets. Both impact and commercial investors are increasingly looking for investable projects in sustainable utilisation of biodiversity. A shortage of pre-screened investable projects pipeline and diversified assets classes are; however, some of the critical challenges that potential investors are facing. NIG is working to bridge this gap by offering a range of pre-screened investable nature-based projects in Africa to both public and private investors. Our pre-screened pipeline of projects are characterized by exhaustive, collaborative, and wide stakeholder engagement in the design and conceptualization stages. The pipeline also has ready opportunities to activate both short and long term cash flows while ensuring biodiversity sustainability. At NIG, we believe now is the time to establish conservation finance in mainstream investment markets to give nature the value it deserves.

Themes of interest include:

Tourism
Forestry
Carbon opportunities
Restoration
Blue economy
Real estate
Local enterprise and new ventures

Land ownership and investment

Land ownership and use can be challenging in Africa, especially for foreign investors. The challenges include inconsistent land policies, inadequate land administration infrastructure and record-keeping, ambiguous land tax regimes and unclear right of use. NIG, using its local knowledge and legal network, will ensure the investor has the most secure land tenure arrangement available, and NIG will be transparent about the risks and costs associated with the investment and property rights.

Managing and overseeing impact

Increasing disclosure and public awareness of sustainability impacts investor allocation of funds, and therefore projects and investment need an ESG framework and, importantly, a mechanism to measure impact and report it to investors and third parties.

In recent years, corporate responsibility for climate change has attracted increased attention from legislators, regulators, investors, and activists alike. In the UK, for example, the government’s Green Finance Strategy introduces mandatory climate-related reporting throughout the economy by 2025. Beyond compulsory reporting in the UK, a range of investor-led and sectoral initiatives are setting more stringent best-practice standards.

NIG keep track of these developments and apply these principles in jurisdictions beyond the UK to manage our impact.

Financial controls

NIG utilises the necessary systems to manage the checks and balances to manage financial flows from investors to projects or companies on a case by case basis, directly in Africa or via Special Purpose Vehicles (SPV) established or projects or investments. These include:

Authorisation protocols and the division of duties to ensure adequate controls and sign-off
Approval of expenditure including requisition process, which includes invoice management, company and projects expenses and cost authorisation
Processes and systems to manage annual budgeting and internal and external reporting.
Income identification and controls when NIG raises funds through grants, sponsorship, donations, or philanthropy.

Compliance with UK rules and regulations but also the laws, rules, and regulations in the relevant African country of operation.
Adequate accounting systems to record and report activities and annual audited accounts
Systems to meet requirements of reporting to funders and external stakeholders
Systems for reporting to management, sub-committees, boards, and trustees.

Investments in the land, infrastructure, and services and sustainable management of ecosystem services to achieve financial returns.