To help reduce carbon emissions in Africa's real estate sector, IFC today announced a partnership with Novare Equity Partners to help the company assess the resource efficiency of its properties in sub-Saharan Africa and develop a strategy to green its portfolio of commercial and residential buildings in Mozambique, Nigeria, and Zambia.
The partnership marks the first for IFC's Greening Real Estate Investment Portfolios (GRIP) Africa program, launched in 2022 to help major real estate portfolio owners define and implement decarbonization strategies, including through energy efficiency measures, long-term renewable energy solutions and other carbon removal and sequestration opportunities. The goal is to reduce greenhouse gas emissions in this carbon intensive sector.
IFC's support to Novare will include a baseline greenhouse gas emission inventory review, a resource efficiency assessment of Novare's property portfolio across sub-Saharan Africa, and the development of a decarbonization strategy for its assets in Mozambique, Nigeria, Zambia.
Buildings are responsible for about 40 percent of global energy-related carbon emissions. However, green buildings can drastically reduce emissions in the construction and operation phases, and research shows that utility costs in green buildings are at least 30 percent lower than comparable traditional buildings.
"Novare is thrilled to partner with IFC as the first firm to receive support in the IFC GRIP Africa program," said Lerato Kumalo, Chief ESG and Impact Officer at Novare Equity Partners. "With IFC's support, we are rolling out a sustainability-first approach in our buildings, which on a micro scale will translate into lower operating costs for our buildings and on a macro scale will mean a brighter, more sustainable future for people across Africa."
"With the African real estate sector expected to grow at almost seven percent annually over the next few years, taking strategic, proactive steps to decarbonize it is vital for the sector's sustainability," said Adamou Labara, IFC Country Manager for South Africa. "IFC's partnership with Novare underscores our commitment to helping firms and economies transition to a greener, more sustainable future."
The launch of GRIP Africa follows its successful rollout in other regions. As of March 2024, GRIP has engaged in seven GHG reduction projects in Latin America, the Caribbean, Eastern Europe, and Türkiye, impacting over 17 million square meters of gross leasable area.
According to IFC research, green buildings will represent an investment opportunity of almost $25 trillion in emerging markets by 2030. Growing numbers of real estate owners, developers, tenants and industry groups in Africa are seeking to meet green building standards.
IFC also supports the green transition of the industry including through its EDGE platform, which helps real estate developers and building owners design and certify resource-efficient buildings.
About IFC
IFC a member of the World Bank Group is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
