FAPBM invests nearly USD 700,000 in Miarakap impact fund. It is counting on the performance of local start-ups to finance protected areas in Madagascar.
Created in 2005 to ensure the sustainability of funding for Madagascar’s Protected Areas System, FAPBM has established a sustainable financial mechanism that benefits 64 of Madagascar’s 123 protected areas to date. Indeed, FAPBM mobilizes capital and invests it on the financial markets. Only the annual revenues generated are used to finance the protected areas. The investments of this capital follow a strict policy of ethics in terms of Environmental, Social and Governance (ESG) criteria.
Impact investing to support conservation
The investment policy adopted by the Board of Directors requires FAPBM to devote 15% of its capital to environmental and social impact projects, in order to strengthen its environmental and social impact. Beyond the conservation of Madagascar’s unique natural capital, FAPBM is thus broadening its scope of impact, corroborating its desire to act for sustainable human development.
This part of the capital is thus invested in projects that contribute to access to financing for entrepreneurial initiatives in favour of health, environment and education, or sustainable agriculture with a particular priority for countries in Asia, Africa and Latin America. For example, the REAFII fund invests in renewable energy in Africa, while the CASEIF III fund focuses on SMEs in various sectors (small industry, agribusiness, renewable energy, education) in Central America for job creation and environmental protection.
Strengthening impact investments in Madagascar
FAPBM’s participation in the Miarakap investment fund reflects its desire to strengthen its impact investments on Madagascar. Indeed, FAPBM has started a first experience with the Adenia fund, whose results are encouraging. FAPBM has identified Miarakap as a key partner to support environmental and social entrepreneurial initiatives in Madagascar.
FAPBM joins Miarakap’s investors among which BMOI Groupe BCP, OTI Ouvrages Travaux Industriels, Sahanala Madagascar, Satrana Investments, Investisseurs & Partenaires – I&P, Société Générale Madagasikara, BNI MADAGASCAR, Axian Group and many others. FAPBM is the only foundation.
FAPBM’s investment will help Mirakap’s capital to reach MGA 25 billion, which will be invested in capital in SMEs with impacts. This fund plans to finance up to four new SMEs annually, with approximately MGA 2 billion per investment. This is an opportunity for FAPBM to contribute to the ambitious vision of the investment fund: to finance and support 300 companies, to assist the creation of 30,000 direct jobs and positively impact the lives of 1 million vulnerable people.
FAPBM also intends to support a new generation of entrepreneurs who are more concerned about nature and have a strong potential for growth and environmental, societal and governance (ESG) impact. “The fund targets companies that already exist, are profitable and have the potential to grow at least fivefold over the next five years,” said Miarakap Investments CEO, Emmanuel Cotsoyannis. FAPBM also anticipates positive financial returns that will further support protected areas in the long term. The expected revenues from these investments will either bolster the funding provided to the PAs already funded or help reach the goal of 72 PAs funded by FAPBM by 2026.
