Actis Partnership in Action Core business
© WORLD BANK/JONATHAN ERNST
A NEW GLOBAL PARTNERSHIP WITH BUSINESS
Embedding the principles of sustainability into urban development
Public policy
Partnership context In 2020, it is estimated that nine African cities will have a population of more than five million people. Rabid urbanisation across Sub-Saharan Africa will see an influx of 58 million people into urban centres between 2010 and 2020. Another 69 million will join them in the following decade. As a result, Africa’s cities face colossal infrastructure challenges with the provision of energy, water and sanitation to cater for fast growing urban populations. Managing the environmental impact of urbanisation will be critical. For example, around 400 million people in 15 countries in Sub-Saharan Africa suffer from water scarcity; that number is projected to double to over 800 million by 2050 if resources are not managed efficiently. Embedding the principles of sustainable development into Africa’s urbanisation process is a key priority. For example, UNEP estimates that better harvesting rainwater could provide water for 520 million Africans. With roots in the UK’s Development Finance Institution CDC, Actis is a private equity firm with a strong track record of investing in businesses across Sub-Saharan Africa, with a particular focus on infrastructure. Actis launched the first SubSaharan African private equity real estate fund in 2006. Since then, the team has built up a portfolio of developments in Ghana, Kenya, Nigeria, Tanzania, Uganda and Zambia.
Sustainability lies at the centre of Actis’s real estate investment strategy. With established design and construction guidelines for co-investors, architects, designers and builders governing all real estate investments, Actis ensures that all developments are certified to internationally recognised green rating standards such as LEED and Green Star, and will be at least 25% more energy efficient than existing buildings in the region. This approach also makes business sense, as resources become increasingly scarce and expensive and demand grows for more energy and resource efficient office and residential space.
Project scope In East and West Africa, Actis is facilitating the adaptation of international green rating systems to locally specific climatic and socio-economic needs. With 70 million people in West Africa projected to move to cities over the lifetime of the properties that are currently being developed, Actis needs to make sure its buildings can continue to deliver value for money as resource scarcities mount. In Ghana, Actis has partnered with the World Green Building Council, the African Union of Architects, and its local development team to establish an internationally recognised Ghana Green Building Council to localise international standards (such as Green Star) to address the region’s environmental and social needs. For example, water shortages are a particular problem in Ghana and any relevant green rating scheme should give special consideration and weight to water conservation, recycling and reuse. Through this approach, specific factors can be addressed, including site issues relative to urban growth, water efficiency, non potable water utilisation, energy efficiency, solid waste management, local availability of construction material, and sourcing of imported materials.
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