The initiative comes as businesses linked to natural resources face pressure to demonstrate that their operations can generate returns The initiative targets businesses whose earnings depend on protecting or restoring forests, soils and other natural resources but struggle to secure commercial financing.
/HANDOUT Two Kenyan businesses involved in sustainable agriculture and natural resource exports have been selected for a pan-African programme seeking to help nature-based enterprises raise about $10 million (Sh1.29 billion) in investment. Acacia EPZ, an exporter of gum arabic, and ForestFoods, an agroforestry business, are among five enterprises selected for the 12-month Nature-First Innovation Lab (NFIL), which will provide funding and business support to help them attract investors.
The programme is run by FSD Africa in partnership with Systemiq and the African Natural Capital Alliance, with financial backing from UK International Development and the Norwegian Agency for Development Cooperation. The initiative targets businesses whose earnings depend on protecting or restoring forests, soils and other natural resources but struggle to secure commercial financing.
The five enterprises have a combined fundraising target of about $10 million (Sh1.29 billion), although the amount each business expects to raise was not disclosed. Acacia EPZ, founded in 2015 by Sam Ombogo Nyamboga, exports gum arabic, a natural ingredient used in soft drinks, confectionery and medicines.
The company sources the product from collectors, more than 70 percent of whom are women, whose livelihoods depend on healthy acacia woodlands. The business is positioning itself as an alternative supplier as conflict in Sudan disrupts supplies from one of the world's major gum arabic-producing countries.
Acacia EPZ's revenues have grown by 56 percent over the past two years, according to the programme organisers. Nyamboga said the business was seeking to expand a supply chain that supports local incomes while maintaining the woodlands on which production depends.