Nature-based Investments in East Africa

In this concept note, we are proposing investments in three enterprises based in Africa, with two focused specifically in Uganda. These enterprises focus on: 1) eco-tourism; 2) agricultural commodity production; and 3) technical and logistical support for artisanal mining. These investment concepts are based on the founder of HMG’s recent three-year experience working in Uganda for an international conservation organization to promote integrated biodiversity conservation and local economic development.

ENGO will begin work planning for each of these investment ideas, as well as begin recruiting staff and selecting a field office from which to operate in Uganda.

Investment One: Eco-tourism (Uganda)

ENGO proposes investing in eco-tourism enterprises in the northern Albertine Rift region of Uganda in order to promote nature-positive investments in the region which will drive economic growth, improve the household livelihoods of local communities, and result in the economic valuation and protection of its rich biodiversity.

This investment will include buying into existing, as well as developing new, eco-tourism enterprises. The end of the COVID-19 pandemic and substantial public investments in the regional transportation infrastructure (roadways, bridges, and an international airport), set the stage for substantial growth of nature-based tourism in Uganda. Being able to fly into the new international airport in Hoima will make travel to national parks and forests rich in biodiversity convenient and appealing to international tourists. Not only can a tourist go on safaris within Murchison and Queen Elizabeth national parks, but only Uganda also offers tourists the opportunity to go trekking to see both chimpanzees (Kibale Forest Reserve) and gorillas (Bwindi National Park) in their natural habitat. And, while there are many low- to mid-level tour operators, Uganda has a relatively few high-quality tour operators ready to cater to the needs of high-income travelers.

In addition to providing safaris and stays at eco-lodges focused on larger parks and forests, opportunities also exist to develop one-of-a-kind eco-lodges with access to local habitats for birds and primates (monkeys and chimpanzees). Eco-lodges associated with smaller habitats would foster local biodiversity conservation and livelihood improvement, with the eco-tourism operation serving as the driver of long-term success.

Additionally, ENGO will establish community projects aimed at creating economically viable livelihoods for communities around the farm in order to get acceptability of any eco-tourism activities. Such projects could include agro-forestry extension, the introduction of clean cooking solutions/stoves, and the manufacture of biofuel briquettes.

Investment Two: Agricultural Commodity Production (Uganda)

Because over 80% of Uganda’s rural communities rely on subsistence agriculture as their main economic activity, agro-based enterprises provide an important vehicle for generating economic benefits from wildlife conservation for communities. By improving household livelihoods in rural communities, pressure to use resources in an unsustainable manner that threatens individual species or ecological integrity is decreased. For example, where biofuels made from agricultural wastes can replace artisanal charcoal, the rates of clearance for national, district, and communal forests decreases which supports the long-term viability of those forest ecosystems. This, in turn, protects Uganda’s rich biodiversity.

ENGO proposes the establishment of an enterprise focused on the production and marketing of high-value agricultural products, which can include: 1) timber; 2) livestock (e.g., cows, goats, pigs, fish); 3) fruits; 4) coffee; 5) maize; 6) avocado; and 7) apiary products. The enterprise will obtain access to necessary land for land by purchase, lease, or via out-grower agreements. Marketing of agricultural commodities will be both domestically- and internationally-focused within already established commodity markets.

ENGO proposes the establishment of plantations of commercial timber (pine, eucalyptus) mixed with coffee (shade coffee), fruit trees, livestock and apiary production on land leased or purchased by the company. There are multiple benefits to the proposed investment: 1) company income; 2) job creation and improving livelihoods; and decreasing pressures on local ecosystems. Income would be generated from the: 1) sale of commodities; 2) appreciation in the value of land purchased; and 3) sale of carbon credits.

Investment Three: Technical & Logistical Support for Artisanal Mining (East & Central Africa)

Throughout East and Central Africa, artisanal mining for minerals and gems provides subsistence income for millions of miners. These artisanal mines are dangerous (e.g., cave-ins), unhealthy for miners and local ecosystems (i.e., use of mercury), and they are staffed by poorly organized and impoverished miners. ENGO proposes establishing an enterprise which provides support services to these mining operations which: 1) build the organizational capacity of these enterprises, including transfer of business management skills; 2) improve working conditions, including the decrease of threats to health and safety; 3) increase the technical capacity of mining enterprises, emphasizing current best practices; 4) increase the livelihoods of miners; 5) decrease the impacts mining operations have on the local ecosystem; and 6) provide logistical and procurement support in service of the objectives above.

ENGO would form agreements with artisanal mining operations capable of paying for services in cash or in raw materials valued at global prices. The goal would be to create a portfolio of clients with whom the company has a long-term working relationship in order to maximize the potential growth of these small enterprises. There are multiple benefits to the proposed investment: 1) company income; 2) improving livelihoods; 3) developing enterprises for local economic growth; and 4) protecting local ecosystems from negative impacts (siltation and pollution of waterways).