Catalytic Spotlight: Africa Conservation and Communities Tourism Fund (ACCT)
Africa Conservation and Communities Tourism Fund (ACCT)
Problem: Sub-Saharan Africa is home to a disproportionately high number of biodiverse ecosystems, and eco-tourism operators, such as camps and safaris, employ revenue generating and self-sustaining practices to conserve these environments. This industry faced a devastating blow as COVID-19 halted international travel, and now, as operators struggle to recover, the fate of millions of acres of wildlands and wildlife hangs in the balance. If operators fail to financially recover, once protected wildlands will be at high risk of destruction which would worsen planetary health, exacerbate climate change, and deprive local communities of employment and management opportunities.
Impact Goal: Enhance protected areas and local community wealth creation
Impact Approach: Low-cost, flexible debt financing to eco-tourism operators
Geography: Sub-Saharan Africa
Beneficiaries: Tourism operators, the planet, and local communities
About ACCT Fund:
The Africa Conservation and Communities Tourism (ACCT) Fund is a blended finance fund by Third Way Partners in partnership with the Nature Conservancy to support conservation-focused tourist organizations -- wildland and wildlife camps and safaris -- in Sub-Saharan Africa. ACCT Fund provides low-cost flexible financing to eco-tourism operators who have limited access to financing as they work to bounce back from the economic downturns of COVID-19. 100% of borrowers will have impact covenants written in their agreements for operators to enhance conservation practices, hire local staff, and source materials from local communities. The Fund intends to preserve, protect, and enhance conservation practices on 694,000 square km, roughly the size of Texas.
Catalyzing Impact Features
Portfolio company, Asilia Kenya
Climate Justice: The Fund provides local communities pathways to leadership opportunities, land ownership, and other forms of wealth creation while protecting and enhancing a sustainable economy.
Impact Governance: Every investment must receive approval from the Conservation Committee (“CC”), a governance body of five conservation experts. The CC evaluates each borrower’s current commitment to conservation and capabilities to improve practices.
Impact Lock Through Covenants: Every loan agreement will have impact covenants for conservation and community impact, which, if breached, will result in a monetary penalty of 2% added to borrowers’ annual interest rate.
Impact:
Each loan agreement will have built-in impact covenants tailored for each operator. Examples include the following:
Example Borrower Commitments
Covenant Category
1. Minimum annual payment of US $X to a protected area manager for x years
2. Additional financial or in-kind contribution of US $X to the protection and enhancement of the conservation area by [insert description]
Ecosystem Protection and Management
1. Offer a minimum of X permanent jobs and Y seasonal jobs to the local community for [x years]
2. Invest a minimum of US $X per year in initiatives for local community development of infrastructure and social aspects
Conservation, Communities & Economy
Chat with the Align team today for more information on how to participate in this catalytic fund.