Ecological transition in Africa: why is Veolia getting closer to NORFUND?
The French group Veolia has reached an agreement with the Norwegian Investment Fund for Developing Countries (NORFUND) to set up an investment platform in Africa. This partnership will support the ecological transition in the industrial sector.
Veolia has found a new ally for the development of its activities in Africa. The French group specialising in environmental services has signed an agreement with the Norwegian Investment Fund for Developing Countries (NORFUND) to set up an investment platform. The new financing and development structure, which is intended to breathe new life into Veolia’s business on the African continent, targets industrial companies.
This is also the aim of Veolia’s GreenUp programme. This €2 billion plan is designed to support ecological transformation, particularly in the industrial sector. As part of this, the investment platform set up with Norfund should provide “integrated solutions (design, construction, operation and financing) through a one-stop shop, including off-balance sheet financing”, say the two partners in a joint press release.
Reuse and energy efficiency in industry
In concrete terms, NORFUND and Veolia plan to develop, finance, build and operate assets that reduce the carbon footprint, optimise the water cycle and ensure sustainable waste management for African industries. The future investment platform will target projects ranging from €3 million to €50 million and will “provide turnkey solutions and performance-based contracts to clients, targeting resource-intensive sectors such as food and beverage, materials, chemicals or mining”, say the two companies.
These will mainly be water reuse and energy efficiency projects. Through its partnership with Veolia, NORFUND is further diversifying its activities in Africa. South of the Sahara, the Norwegian investor is active in the highly dynamic renewable energy sector, particularly in large-scale solar energy, solar home systems and the productive use of energy through various mechanisms.
In recent years, NORFUND has announced investments in the industrial sector, including low-carbon cement in Ghana, and even sustainable forestry. To date, its asset portfolio is valued at 3.6 billion dollars in sub-Saharan Africa, South and South-East Asia and Latin America.
