Africa’s new $100 million nature fund puts local businesses in the picture
Restoring degraded land, protecting forests and running carbon projects require people, equipment and money.
Investment
Restoring degraded land, protecting forests and running carbon projects require people, equipment and money. A new investment fund targeting $100 million for nature-based projects across Africa could help more of these activities get off the ground, with potential work for businesses that supply the services they need.
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Restoring degraded land, protecting forests and running carbon projects require people, equipment and money. A new investment fund targeting $100 million for nature based projects across Africa could help more of these activities get off the ground, with potential work for businesses that supply the services they need. The Africa Nature Impact Fund was launched by Finance Earth, FSD Africa and FSD Africa Investments. It is targeting an initial $20 million close in 2027. FSD Africa Investments has committed £5 million, worth about $6.6 million, to the fund.
The fund will back nature-based projects, including those that may generate carbon credits. Its targets include protecting or regenerating 4.5 million hectares of land and improving the livelihoods of 1.4 million people.
For a small business, those figures are a long way removed from its day to day operations. What matters more is whether projects receiving investment will need local suppliers and whether those suppliers can win the work.
“A large project can become difficult to manage if payments are delayed or expenses are higher than expected.”
Who could get the work?
A restoration project might need a nursery to supply indigenous plants, a contractor to prepare the land or a transport company to move workers and materials. Once planting is finished, someone still has to maintain the site and check whether the work is producing results. Other projects may need environmental assessments, land surveys and people to collect information from project sites. Carbon credit developments can require ongoing monitoring and records to support claims about emissions reductions or removals.
Some of these services are within reach of smaller businesses. Others require specialist skills, equipment or experience that a new supplier may not have. The fund has not announced a list of contracts available to SMEs. Businesses should not assume that its investment target translates directly into orders for local contractors. That will depend on which projects are selected and how developers choose their suppliers.
Getting paid matters as much as getting the contract
Environmental work can involve costs well before a supplier receives payment. A contractor may need to hire workers, buy materials, arrange transport and keep equipment running while waiting for an invoice to be settled. For a small company operating with limited cash, a large project can become difficult to manage if payments are delayed or expenses are higher than expected.
Businesses considering this market need to understand the scope of the work, the length of the contract and the payment terms before committing resources. They should also establish whether they will deal directly with a project developer or work as a subcontractor. For firms without experience in carbon or conservation projects, supplying an established operator may be a more realistic starting point than trying to develop a project of their own.
The money has to reach projects first
The Africa Nature Impact Fund is working towards its first close in 2027. Further information about its investment criteria, target countries and selected projects will help establish where opportunities may arise. Until then, businesses can identify services they already provide that could be relevant to restoration or conservation work. A company with agricultural equipment, a plant nursery or environmental monitoring skills may have something to offer, but it will need to find projects that actually require those services.
The fund aims to generate about $450 million in economic benefits for local communities. Whether that translates into contracts and income for small businesses will depend on how projects are structured and how much work is sourced locally. For now, the announcement is a reason for businesses in this sector to pay attention. The more useful information will come when the fund starts identifying the projects it intends to finance.
