our investment philosophy
At Pumapa, we believe that applying ethical, environmental, social and governance (ESG) values to each investment decision we make builds a better world for current and future generations. We further believe that such values also help generate strong financial returns for our investors. Therefore, we consistently consider ethical and ESG factors when making investment decisions, evaluating opportunities from both a value creation and ESG risk mitigation perspective.
We are committed to investing in businesses that implement good governance, do business in an environmentally responsible way, contribute to sustainable communities and create quality jobs that present opportunities for women, youth and other marginalized groups. Where businesses fall short but they demonstrate a commitment to improvement in these areas, we walk with them to remedy shortcomings. Our goal is to encourage the adoption of high standards of behaviour as a means to maximize long-term shareholder value.
investing IN THE sdgS
Pumapa seeks to contribute to the global development agenda and the Sustainable Development Goals as ratified by the UN in 2015. We work at mobilizing capital to achieve these goals with a specific eye to the SDGs below.
SDG 1: No Poverty. Pumapa supports initiatives that help people find affordable, dignified living and establish strong social safety nets.
SDG 8: Decent Work & Economic Growth. Pumapa backs businesses that are creating jobs for women and men and committed to developing progressive workers and leaders.
SDG 2: Zero Hunger. Pumapa invests in businesses that are disrupting global food and agricultural systems and driving agribusiness forward.
SDG 9: Industry, Innovation & Infrastructure. Pumapa invests in companies that are using sustainable resources and technology, redefining the way manufacturing is done.
SDG 5: Gender Equality. Pumapa is committed to pursuing gender equality internally and invests in those that are doing the same.
SDG 11: Sustainable Communities & Cities. Pumapa envisions a world where even low income communities have access to dignified and safe living conditions. We invest in companies that are doing just this.
SDG 7: Affordable & Clean Energy. Pumapa invests in companies that are innovating and bringing affordable, clean energy to the masses.
SDG 13: Climate Action. Pumapa supports businesses that are tackling the climate crisis head on. Change-makers and leaders in this area require our support.
focus on africa
Africa has largely been overlooked as a viable investment space. Currently, the continent receives only 4% of the world's foreign direct investment, despite wielding over 65% of the world's arable land. Africa is resource rich but has, for many years, been subject to exploitation, colonization, corruption and oppression, creating a vacuum for sustainable innovation. It is in this vacuum that we find significant opportunities to provide investment and support to help grow change-makers.
Addressing Africa's infrastructure obstacles is a critical first step. These obstacles - lack of access to food, shelter, water and clothing - are felt most by those at the bottom of the pyramid. Pumapa's focus is to invest into companies that are solving these basic needs challenges while positively impacting livelihoods in ethical and sustainable ways.
What we have done
Pumapa has already made investments into these areas, starting with FreshCrop, a potato seed company based in Nakuru, Kenya. FreshCrop was established to tackle a problem in Kenya's potato seed market. Despite the country having optimal land for cultivating high-quality potatoes year-round, they found that nearly 98% of certified potato seeds available in the Kenyan market were being imported (primarily from Europe), and were 'end of life' seed (meaning farmers could only yield between 4-8 potatoes per plant). FreshCrop set out to change this. Through a well researched program over several years, the company is successfully producing seeds that yield between 25-35 potatoes per plant, which has had an extremely important impact on farmers (especially, smallholder farmers). Pumapa's investment helped FreshCrop bulk their high-quality seed rather than having to sell it for cashflows. This allowed the company to grow from 50 acres to over 500 acres of seed production in under two years.
Pumapa is also raising capital for a construction company, Living Walls Africa (Living Walls), based in Nairobi, Kenya. Living Walls holds a unique position in the Kenyan market as their aim is to use sustainable building materials wherever possible. A key focus sector for Living Walls is low-income housing. They are using compressed agricultural fiber (CAF) panels made from agricultural waste - primarily wheat and rice straw - to build low-income housing and pre-fabricated structures. Their goal is to create dignified living spaces for people at the bottom of the pyramid, helping them get on the property ownership ladder through rent-to-own options. This not only addresses the huge demand there is for low-income housing (a current demand of 2 million units), but it will also ensure that agricultural waste gets utilized by providing an additional revenue stream for farmers.