Moringa, SICAR, a private equity investment vehicle dedicated to making investments in sustainable agroforestry projects in sub-Saharan Africa and Latin America, has announced its final close at €84m.

Joining cornerstone and first closing investors CBR, FISEA, CAF – the development bank of Latin America, Finnfund, FONPRODE, Korys and FMO are the African Development Bank (AfDB), the Global Environment Facility, and Skopos Impact Fund.

Clément Chenost, The Moringa Partnership Technical Director, has previously told Africa Global Funds that Moringa was expecting to reach its final close earlier in 2015.

Chenost explained, however, that “the legal discussion with AfDB & GEF was long because they have specific restrictions (need to invest in an African vehicle)”.

“And we had to create a dedicated vehicle in Mauritius. It simply took time to establish a smooth structure working well with the Luxembourg funds,” he added.

Moringa’s investment strategy is to support the development of agroforestry businesses located sub-Saharan Africa and Latin America.

Agroforestry projects combine forestry and agricultural elements to mitigate risk and produce synergies that lead to strongly positive environmental and social impacts.

Moringa will typically invest between €4m and €10m of growth capital per investment and aims to support businesses that address both local and international markets.

Portfolio companies will produce staple food and export crops, biomass and timber for local and international markets.

“Agroforestry project architecture is flexible and coffee, tea, cassava, maize and edible oils are good examples of agricultural products that may be produced alongside different kinds of timber which may be softwood or hardwood,” said Moringa.

In addition to providing investors with an attractive return derived from a sustainable portfolio, Moringa projects will routinely seek applicable third party sustainability certification.

“They will contribute tangible and measurable benefits to local populations such as job opportunities and additional income and facilitate the provision of improved health and schooling,” said Moringa.

“Use of best practice planting techniques and the benefits of the agroforestry approach will leave behind a fertile soil which will enhance the attractiveness of Moringa’s projects.”