December 27, 2024
Norfund is investing NOK 235 million in The Urban Resilience Fund (TURF B), which focuses on sustainable urban infrastructure in rapidly growing cities.
“By supporting public transport, renewable energy systems, and efficient waste management, TURF contributes to economic growth and the development of sustainable cities,” says Carl Johan Wahlund, Senior Vice President for Green infrastructure at Norfund.
Today, more people live in cities than in rural areas, and by 2050, the world’s urban population will grow from the current 4.5 billion to 6.7 billion.
“The growth places immense pressure on cities’ already overstretched infrastructure, with challenges further intensified by the increasingly tangible effects of climate change,” says Wahlund.
TURF B is managed by Meridiam, a leading infrastructure expert managing over USD 22 billion globally across twelve funds.
“Meridiam and TURF B provide a unique approach to developing and building urban infrastructure in Africa, with the ability to advance projects from an early stage and maintain a long-term perspective,” says Wahlund.
Within TURF B, Meridiam focuses on specific African cities, exploring how the private sector can tackle public challenges through public-private partnerships (PPPs).
In Mauritania, Meridiam is already collaborating with the government to protect the capital, Nouakchott, from climate change-induced erosion and flooding while simultaneously developing the coastline for local communities. The €60 million project includes reinforcing sand dunes, constructing new walkways, implementing rainwater drainage systems, building a bypass road, reconstructing the fish market, and promoting new economic activities.
Focus on Green Infrastructure
The investment in TURF is part of Norfund’s focus on Green Infrastructure, which has been a prioritized investment area since 2020, emphasizing solutions in water supply and waste management.
“The team behind TURF B has specialized expertise in developing new projects in close collaboration with cities, which could also lead to direct investments from Norfund in the long term, where we can help accelerate solutions that build the sustainable cities of tomorrow,” says Wahlund.
Since 2020, Norfund has made five investments in water and recycling projects in Africa.
“We knew this would be challenging, as water and waste are still very underdeveloped sectors in Sub-Saharan Africa. However, it has taken longer than expected to build this portfolio, as we have found few investment opportunities that meet our standards,” says Wahlund.
To develop new projects, Norfund has also started a collaboration with the global environmental company Veolia to establish a joint development and financing platform. The goal is to contribute to more environmentally friendly industries in Africa through sustainable solutions for water, energy, and waste management.
“We hope to see more investments in this field in the future,” says Wahlund.