Moringa is a EUR 84m investment fund which targets profitable large-scale agroforestry projects with high environmental and social impact, located in Latin America and Sub-Saharan Africa. The fund makes equity investments of EUR4-10m into projects and adds value via its technical skills, environmental and social know how and global network. The fund leverages the inherent sustainability of agroforestry to distinguish itself from other land-based investment approaches and to build genuine sustainability into its projects.
The Moringa Partnership is the investment advisor to the Moringa Fund. In the context of Initiative 20x20, it intends to invest US$60 million until 2020 in agroforestry projects with high environmental and social impacts.
Moringa’s vision is to create economic benefits for investors and local communities while contributing to building environmental and social resilience of land-use. Moringa’s mission is to strengthen and leverage the inherent sustainability of agroforestry. Well-designed and well-managed agroforestry projects provide:
- better risk mitigation in the short and long term;
- higher profitability in the long term;
- greater capital efficiency and a stronger cash flow profile;
- inherent sustainability, including positive environmental effects and social inclusiveness.
Moringa works with project promoters constituted as private companies. In case of an individual, they provide assistance to create the appropriate legal figure. They take participations into the company through a shareholder’s agreement and maintain minority participation. The return on investment comes from the sale of part of the production during the first years (including efforts for better prices) and from the sale of participations at the end of the project (7-10 years).
Projects based on unsustainable practices are not included in the Moringa investment strategy. Moringa projects will seek relevant third-party sustainability certification (e.g. FSC (Forest Stewardship Council), CCBs (Climate Community and Biodiversity standard), SAN (Sustainable Agriculture Network)), where possible and relevant. Projects may also seek Fair Trade, organic or similar certification from consumer associations.