ESG and Impact Report 2022​

Kuramo Capital continues to make significant strides in integrating Environmental, Social, and Governance (ESG) principles across its investments in Africa. The 2022 report highlights the firm’s commitment to responsible investing, focusing on job creation, gender diversity, financial inclusion, and sustainability to drive long-term impact.

Our ESG Approach

Kuramo Capital integrates ESG considerations at all levels—through its investment strategy, Corporate Social Responsibility (CSR) initiatives, and governance frameworks. As a UNPRI signatory since 2017, the firm prioritizes investments that balance risks while maximizing social and economic benefits in sub-Saharan Africa.

Key Investment Principles

  • Impactful – Fostering business growth and sustainability in private equity.
  • Catalytic – Acting as an anchor investor, mentoring fund managers, and mobilizing additional capital.
  • Indigenous – Leveraging local expertise to enhance impact.

ESG Investment Process

  • Screening & Evaluation – Identifying ESG risks and opportunities.
  • Due Diligence – Categorizing ESG risks and aligning strategies accordingly.
  • Investment Committee Review – Assessing compliance and ESG value addition.
  • Investment Monitoring – Conducting site visits and ensuring policy implementation.
  • Exit Strategy – Strengthening governance for long-term ESG impact.

Excluded Investment Sectors

Kuramo avoids investments in sectors that pose ethical, legal, or environmental risks, including:

  • Arms production and trade
  • Illegal industries and exploitative practices (e.g., forced labor, gambling, pornography)
  • Environmental hazards (e.g., unbonded asbestos, hazardous chemicals)

Key ESG Developments & Focus Areas

Kuramo aligns its ESG policies with international standards from institutions like British International Investment (BII) and the International Finance Corporation (IFC), emphasizing:

  1. Governance & Compliance
  • Strengthening corporate governance across investments.
  • Enhancing financial reporting, anti-corruption policies, and regulatory compliance.
  1. Job Creation & Economic Growth
  • Supporting SMEs and youth employment.
  • Driving economic development through strategic investments.
  1. Gender Diversity & Inclusion
  • Expanding women’s leadership representation.
  • Funding and supporting women-led businesses.
  1. Climate Resilience & Sustainability
  • Investing in renewable energy and responsible resource management.
  • Encouraging portfolio companies to reduce carbon footprints.
  1. Financial Inclusion
  • Expanding access to financial services, particularly for underserved communities.
  • Supporting fintech and microfinance initiatives.
  1. Essential Services & Infrastructure
  • Investing in sectors such as education, healthcare, and sustainable energy.

Corporate Social Responsibility (CSR) & ESG Initiatives

Kuramo actively engages in community upliftment through CSR initiatives:

  1. Education & Youth Empowerment
  • Nigeria Higher Education Fund (NHEF) – Over 200 students supported since 2016, with 52% securing full-time jobs or graduate placements.
  • Kuramo Junior College (Lagos) – Providing sustainable electricity, school uniforms, and financial literacy education.
  1. Community Support & COVID-19 Relief
  • Partnerships with health and education NGOs across Africa and the U.S.
  • Employee-matched relief fund for pandemic-affected communities.
  1. Environmental Sustainability
  • Tree planting in Nairobi to combat deforestation.
  1. Employee Development & Diversity
  • Internship Program – Trained 60 students in investment management, leading to top industry placements.
  • Diversity & Inclusion – 48% of employees and 40% of investment professionals are women.

Looking Forward: Expanding ESG for Greater Impact

Kuramo’s Vision for the Future

Kuramo is evolving its ESG strategy to enhance long-term impact by:

  • Deepening ESG Integration – Embedding broader ESG factors into investment decisions.
  • Strengthening Research & Reporting – Aligning with global ESG standards.
  • Enhancing Monitoring & Transparency – Providing greater stakeholder visibility on ESG initiatives.
  • Driving Sustainable Investment Growth – Ensuring financial success aligns with social and environmental progress.
Report

Read the full ESG and Impact Report 2022 here:

Download the Report