CIRCULAR BUSINESS

INVESTMENT FRAMEWORK

Linear economic models have dominated since the start of the industrial era. Traditionally, resources have been harvested, exploited, and then discarded as trash. The traditional linear economy based on the “take-make-dispose” production and consumption model has thrown the planet’s capacity out of balance, leading to a growing coalition of scientists, innovators, policy-makers, and consumers calling for a switch to closed-loop production and consumption systems that minimize waste and emissions as well as material and energy losses, particularly in a world that is growing in both population and wealth.

Numerous essential resources are not only limited in supply or becoming more and more difficult to access, but also their exploitation and single-use can have negative effects on the environment and society. Moving toward a more circular economy, where production and consumption are sustainable for long-term economic growth, is an alternative to the linear model and a potential answer to some of its problems. By 2030, the adoption of the circular economy could create an estimated USD 4.5 trillion in value worldwide, with cutting-edge technology offering fresh approaches to the development of service models and the value extraction from closed-loop systems.

Climate and Clean Technology

A $1.4 Trillion Market Opportunity in Africa

entrepreneurship & business

innovation finance

market development

technology development

legal & regulatory framework

TECHNOLOGY AS A KEY DRIVER FOR CIRCULAR ECONOMY

The shift to a circular economy is increasingly being made possible by technology. The use of physical assets has been significantly reduced thanks to developments in digital platforms, artificial intelligence (AI), and cloud-based solutions, which have contributed to the dematerialization of whole value chains. Production and logistics are increasingly becoming digitalized, which enhances the traceability of resource and product flows and can assist maximize product use over the course of its lifetime, including preventative maintenance techniques. Better control over potential waste generation is made possible by increased visibility, which also increases accountability for businesses along the value chain.

RESEARCH & DEVELOPMENT

We don’t believe in wasting resouces, which also includes investment money. So rather than jumping on the train blind, we use a solid R&D approach to reduce financial risk and create maximum impacts. Also, research development is a key factor we utilize to innovate and improve the level of understanding of market complexities. As our most valuable tool, by conducting research we break down the myths and wrong perceptions of sciences to uphold the truth and create reliable and authentic knowledge. This provides unbiased observation of market complexities and enables fact-based decision-making while improving business attractiveness.

Energy

Transportation

Food

Buildings

Satellite/Telecom

Conservation

Digitalization

Recycling

INVESTING IN CIRCULAR ECONOMY THROUGH THE

AFRICAN CIRCULAR BUSINESS ALLIANCE

We have identified four investment clusters that are set to benefit from the transition to the circular economy: the redesign of production inputs, enabling technologies, circular use, and loop resources.

Redesign Inputs – captures investment possibilities that benefit from the switch to renewable energy sources for inputs.
Enabling technologies – focuses on solutions that either establish new, non-linear business models like product-as-a-service, contribute to the de-materialization of manufacturing, or offer the framework for circular economy firms.
Circular use – comprises businesses that promote circular consumption patterns through sustainable sourcing, the sharing economy, long product lifespans, and reusable products.
Loop resources – focuses on companies that offer solutions to prolong the lifecycles of items or salvage inherent value from abandoned products.

INVESTMENT FRAMEWORK

Higher circularity is no longer only an environmental trend; it is now an issue of fundamental economics as cutting-edge technology assist to extract new value from the circular economy. The structural shifts that are coming will benefit businesses who are pursuing circular business models, and innovation leaders will use the circular economy to distinguish their product offerings. By investing in companies with business models that adhere to the principles of the circular economy or to those who help this transformation happen, forward-thinking investors may profit from this as of yet mostly unexplored growth story.

For more information please contact us

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Chief Investment Officer