They say, ‘make hay while the sun shines,’ and for Florent Nduwayezu, a Strathmore University graduate in Actuarial Science, this timeless adage is more than just a slogan. It’s a way of life—especially when it comes to investments. Florent’s fervent interest in investment started after campus, when he found himself in the corridors of investments after  landing his first job as a business analyst and  later on advancing to becoming a senior analyst. While at Open Capital Advisors, he was involved in performing market research, developing financial models and creating presentations for client meetings across the globe. These tasks would later on grow his adaptedness in investments. 

However it’s at Bestseller Foundation that his interest in making an impact in the environment through climate investment burgeoned. The foundation which mainly focuses on providing early-stage financing to innovative companies with strong tech climate mandate helped him brew his interest in Climate investment. Drawing inspiration from the early days of the oil industry, where Africa capitalized on its natural resources despite not being among the world’s largest oil producers, we can see the positive impact on many African oil-producing countries today. He believes that a similar strategy can be employed in climate investment, leveraging Africa’s unique strengths to drive sustainable development and economic growth.

“Africa can take this opportunity to leapfrog the situation we are in and invest in carbon credits,” says Florent. 

Seizing Opportunities in the Carbon Market

According to Florent, venturing into carbon investment requires a keen understanding of the market but also a discerning eye to separate genuine opportunities from fleeting trends especially since it’s shrouded in complexities and limited information. Therefore having companies such as Melanin Capital that help in creating significant environmental impact, making the process of climate investment more alluring and  fascinating to those ready to tread this uncharted waters is very helpful “It’s all about recognizing the opportunity and maximizing it,” admits Florent. 

He has however found his niche in simplifying this process which is consequently in twofold: the strength of the team pitching the idea and the commercial viability of the product. “No one uses fuel cars because they prefer them to electric cars; it’s just cheaper to use them,” he notes. For a new investment to be adopted, it must be either ten times better or ten times cheaper. It’s about making the choice between cost-efficiency and superior performance.

Trends in Climate Financing

In the dynamic world of carbon investment, shaped by relentless innovation, pinpointing a specific trend can be a daunting task. With cutting-edge technologies and groundbreaking initiatives constantly emerging, each new trend often outshines its predecessor, making the landscape even more captivating and challenging to navigate. 

According to Florent, one standout among these trends is climate financing. This approach involves companies securing capital based on their carbon footprint, rewarding those with lower emissions with more favorable terms. This dual benefit incentivizes greener practices while fostering a competitive edge in sustainability. Additionally, he finds Carbon Capture technology intriguing. This technology captures CO2 from ambient air and stores it underground for future use, thereby reducing emissions from hard-to-decarbonize sectors and helping to mitigate climate impacts.

These trends are not just incremental steps but bold strides towards a more sustainable and economically viable future. “Efficient use of energy and any software that helps control energy usage always catches my interest,” he adds, highlighting his keen eye for innovative solutions.

 Making a Difference Through Innovation

When it comes to driving impactful change in climate investment, Florent is captivated by Silicon Valley’s revolutionary organic spray that extends the shelf life of food by an astonishing three to four times. This innovation is particularly crucial in Kenya, where approximately 40% of food is wasted due to logistical challenges, making this invention a potential game-changer.

However, despite these promising advancements, significant challenges persist in climate investments. “Climate solutions are not always the cheapest option in the market,” Florent admits, recognizing the barriers to widespread adoption. Nevertheless, he remains steadfast in his belief that investing in climate solutions is essential for the future. “We should all stay curious, keep learning about developments in this space, and actively engage in networking,” he insists.

The Power of Innovation

Drawing a compelling analogy to the 1920s and 1930s, the narrative reflects on a time when horse-drawn carriages cluttered the streets with waste. In response, the government increased taxes and tightened regulations to spur growth. However, this approach backfired as entrepreneurs and established companies struggled to thrive under the stringent policies, casting a shadow over the nation’s economy.

“What really turned the tide was innovation. With the invention of the first car, the problem became easier to manage. In less than a decade, streets were cleared of horse waste not through taxation or stricter regulations, but through the transformative power of innovation. That’s precisely what we need to do now—foster innovation in climate investments,”  concluded Florent.

Article by Gertrude Wachira, Alumni Relations.