5 SEPTEMBER 2023
RMB partners with Africa Climate Ventures to drive returns through climate action
RMB Ventures, a private equity subsidiary of RMB, announced today it has entered a partnership with pan-African company Africa Climate Ventures (ACV) to help its existing and future portfolio companies achieve a greater level of sustainability while improving profitability.
ACV focuses on combating the effects of climate change by building and investing in businesses which undertake to remove carbon from the atmosphere or significantly avoid future emissions. ACV has a track record of building new businesses focused on scaling climate-positive technologies, and investing to add climate-positive business lines to existing businesses.
Says Andrew Aitken, Head of RMB Ventures: “We are excited to work with Africa Climate Ventures. This partnership aligns with our purpose to empower our people, teams and businesses to unlock their full potential. RMB Ventures follows a shared value framework of which ESG forms a significant part and that requires a holistic approach to growing our businesses in a way that benefits not only shareholders, but all stakeholders and society at large. Africa needs to embrace these discussions and transform the way corporate management teams and shareholders manage their businesses.”
According to Aitken the partnership will provide a toolkit to transform many of RMB Ventures’ portfolio companies by enhancing returns, particularly those with underutilised carbon potential, while speeding up growth against a shared value template.
“By working closely with Africa Climate Ventures, we believe we can turn climate change from a potential risk to our portfolio into an opportunity for enhanced returns,” Aitken says.
In future, there is potential for RMB Ventures and ACV to jointly invest in companies via equity positions or to establish new businesses that influence climate positive behaviour.
Says Mohamed Cassim, Co-Founder and Chief Investment Officer of ACV: “The partnership offers a range of mutual opportunities. We will provide skills and capabilities to RMB Ventures to identify and execute on climate-positive opportunities in their present and future portfolio. Together with RMB Ventures’ track record, we also expect to attract more deals.”
In early 2021, KOKO Group and Africa Climate Ventures set up a Joint Venture to scale KOKO Networks outside of Kenya for the first time. KOKO Networks is an emerging markets climate technology company that serves sustainable bioethanol cooking fuel to over 1m Kenyan families every day.
ACV also has a majority stake in Great Carbon Valley, a Kenyan venture built to explore and materialise the significant climate action potential that lies in the East African Rift Valley by developing large scale green industry and technical removals projects.
Sally Jansen l RMB Ventures l firstname.lastname@example.org
About RMB Ventures
RMB is a leading African Corporate and Investment Bank and part of one of the largest financial services groups (by market capitalisation) in Africa, FirstRand Bank Limited. RMB Ventures has over the past three decades evolved into one of the largest, most successful private equity franchises in Southern Africa currently investing in more than 20 businesses. Our purpose, “We empower people, teams and businesses to achieve full potential”, is the cornerstone of our strategy. We are passionate about solving problems for our portfolio companies by asking the hard questions. We challenge accepted thinking. We analyse and seek solutions beyond the obvious. We are innovative in our thinking and turn challenges into opportunities.
About Africa Climate Ventures
ACV is a pioneering venture builder working to build a portfolio of climate businesses on the continent. ACV will catalyse the carbon asset class in Africa by building innovative businesses focused on solving our generation’s greatest challenge and at the same time capturing a significant share of global carbon markets in Africa. By 2030 ACV aims to eliminate one million tonnes of carbon every year while improving the lives of 50 million Africans and creating at least 5,000 jobs on the continent. ACV seeks to build its portfolio by investing to: i) bring proven global climate technology to Africa, ii) accelerate and de-risk the continental expansion of technologies and business models that have gained traction in one or a few African market(s), and iii) add carbon revenue streams to existing African businesses with the potential to scale climate positive solutions.