Tridom Financial Flows Analysis
Posted on May, 29 2020
We want to know which big economic developments are being prepared for theTRIDOM area. Therefore, we commissioned an analysis of the existing and planned financial investments in TRIDOM, called Financial Flows Analysis.
We want to know which big economic developments are being prepared for theTRIDOM area. Therefore, we commissioned an analysis of the existing and planned financial investments in TRIDOM, called Financial Flows Analysis.The Dutch consultancy Profundo implemented the study, which was supervised by the TRIDOM Finance Technical Group, composed of representatives of TRIDOM, the Finance Practice, Climate & Energy Practice and Landscape Finance Lab. The study looked at a wide range of investors including African banks with a specific focus on Agro-commodities, infrastructure, logging and mining.
In total US$10 billion is invested in the bonds and shares of companies active in TRIDOM (at least in the three countries). It was not possible to isolate TRIDOM in the analysis. In terms of loans and underwriting services, the agricultural sector is the biggest (US$ 75 billion), followed by logging (US$ 41 billion), infrastructure (US$12 billion) and finally mining (US$ 0,1 billion). Of all the investors, only some bankshad a reasonable level of environmental policies. Only the agro-industry had a reasonable level of environmental policies. The African banks, in general, did not have a very good level of environmental policies, neither did Chinese. Still, several partners of WWF are investing in TRIDOM andthey may be good starting points for discussion. The African banks may be susceptible to WWF message and collaboration. The agriculture and logging sectors seem most promising to start influencing.