Introduction

COSEF is an impact investment company that invests at the nexus of climate and gender in high growth and high impact sectors of agribusiness, manufacturing, renewable energy, education, tourism and hospitality, health and retail, through leveraging support of business development organizations as catalytic funders and technical assistance partners, so as to accelerate achievement of the SDGs in Africa.

Background

There is a $42 billion financing gap for female entrepreneurs in Africa. These entrepreneurs are unable to attract loans from commercial banks because they lack adequate collaterals and are thus considered risky. Also climate change is upon us, and business as usual is failing to address it, resulting into a $2.5 trillion financing gap. Agriculture is the backbone of Africa’s economy, where over 70% of Africans are dependent on the sector for livelihoods. The dependence on agriculture is rendering many economies increasingly vulnerable to the effects of climate change. As for energy, Africa’s economies use fossil fuels to rise out of energy poverty. This causes significant increase in global temperature due to excessive emissions, and has far reaching consequences primarily on women, such as floods, prolonged droughts, climate related diseases and limited education opportunities due to climate related disruptions. There is an urgent need to transition Africa’s economies from fossil fuels to renewable energy, by supporting and growing innovative solutions.

Green and women owned and led businesses and projects are unable to attract financing from mainstream commercial lenders because they are considered risky.

Technical assistance is equally important for these enterprises and projects to grow and scale, and if it’s to benefit many entrepreneurs on the continent, a cost-effective delivery model should be employed.

This calls for not only flexible financing for green and women owned and led businesses and projects, but also an innovative partnership to; (i) derisk investments for private investors so as to unlock more funding and hence contribute to closing the $2.5 trillion and $42 billion financing gaps for climate and women respectively and, (ii) cost effectively grow the businesses to accelerate achievement of the SDGs.

COSEF supports green and women owned, led and focused businesses and projects working in 7 of the fastest growing sectors and engines for sustainable development of agribusiness, manufacturing, renewable energy, education, tourism and hospitality, health and retail, through leveraging support of partner business development organizations as catalytic funders and technical assistance partners.

The company invests through climate and gender linked mezzanine and flexible debt structures to incentivize investees to achieve pre-agreed climate and gender related targets, such as (i) number of women using sustainable energy and or mobility solutions; (ii) number of women benefitting from climate smart and resilient products and technologies; (iii) number of women in formal and indirect employment; and (iv) milestones in addressing gender issues and human rights impacts within the company and among end beneficiaries.

Focus sectors

COSEF invests at the nexus of climate and gender in agribusiness, renewable energy, manufacturing, education, tourism and hospitality, health and retail, 7 of the fastest growing sectors and engines for sustainable development in Africa.