The Aspen Network of Development Entrepreneurs (ANDE), in partnership with the IKEA Foundation, has announced a significant milestone in its Access to Green Finance Project, awarding a total of $700,000 to support entrepreneurs and green businesses in Kenya and India.
This initiative marks a crucial step towards building a more sustainable and inclusive future by empowering small and growing businesses (SGBs) in the waste management and circular economy sectors.
The Access to Green Finance Project focuses on overcoming a key challenge faced by green SGBs: access to finance. Through two key components, the project aims to bridge this gap:
- This $300,000 fund empowers entrepreneur support organizations (ESOs) to design and implement programs that increase investment in waste and circularity businesses in India and Kenya.
Kenya Action Lab: This initiative convenes stakeholders across the waste and circularity sector in Kenya to identify and develop collaborative solutions to systemic challenges.
The project identified a significant market opportunity in the waste and circular economy sectors, with a potential value of $823.2 billion in India and $53.9 billion in Kenya. However, these sectors are currently underserved by investors due to factors such as low investor confidence and a limited number of investment-ready green businesses.
The Access to Green Finance Project builds on a successful first phase launched in 2021, which produced four research studies examining the green entrepreneurial landscape in India and Kenya. This new phase focuses on practical solutions to improve access to finance and accelerate the growth of green businesses.
“This project is a critical step towards a greener future,” ANDE said “By supporting green SGBs, we are not only protecting the environment but also creating jobs and fostering a more inclusive economy,” the firm added, “We are proud to partner with ANDE on this important initiative. By investing in green businesses, we are investing in a more sustainable future for all.”
The Aspen Network of Development Entrepreneurs (ANDE) is a global network of organizations that support small and growing businesses in emerging markets. ANDE works to create an enabling environment for entrepreneurship by providing technical assistance, fostering innovation, and advocating for sound policy.
The IKEA Foundation (Stichting IKEA Foundation) is the philanthropic arm of Ingka Group, the largest IKEA franchisee operating 389 IKEA stores in 31 countries.
This $700,000 USD fund will empower six entrepreneur support organizations (ESOs) in Kenya and India to catalyze investment in the waste and circular economy sectors.
The circular economy offers a promising path towards minimizing waste, maximizing resource reuse, and fostering economic prosperity alongside environmental well-being. The Waste & Circularity Investment Innovation Fund aims to accelerate this transition in Kenya and India by supporting organizations with the expertise and networks to propel green businesses forward.
A rigorous selection process identified six outstanding ESOs from a pool of nearly 100 applicants. These organizations will play a critical role in connecting promising waste and circular economy businesses with the capital and support they need to thrive.
Meet the Kenya-Based Recipients:
- Circle Innovation and KOIS: Launching the “Circularity LaunchPad” to co-design innovative finance mechanisms and support waste and circular economy businesses in attracting investment.
- Smart Regional Consultants (SRC) & Kenya Climate Ventures (KCV): Delivering a comprehensive program to prepare waste and circular economy businesses for investment, including investor matchmaking.
- Agri Frontier: Launching an 18-month program to support waste and circular economy businesses, with a goal of increasing investment-readiness and attracting $10 million in investment.
- Sote Hub: Utilizing digital technology to revolutionize marine plastic waste management in coastal Kenya, creating a replicable model for other communities.
Investing in a Thriving Circular Economy in India
The following Indian organizations will receive funding:
- Upaya Social Ventures, Global Business Inroads (GBI), and rePurpose Global: Collaborating on an investor and market-led accelerator program to increase capital access for waste and circular economy businesses.
- IIM Calcutta Innovation Park: Leading a consortium to accelerate the growth of selected waste and circular economy businesses and secure seed funding.
ANDE noted that these awards mark the beginning of a broader effort to build a robust ecosystem of circular businesses. This initiative aims to create jobs, reduce waste, and contribute to a more sustainable future.