Crowdinvesting – an innovative blending instrument to facilitate climate investments
Smaller-scale investment projects have a key role to play in climate action – especially in the Global South. These are significantly more difficult to finance than larger projects, however. One such financing option is crowdinvesting, whereby many investors contribute smaller sums of money in order to finance the project together. The project was supporting the setup of a crowdfunding platform that aims to be self-supporting after a five-year period. The platform therefore offered investment opportunities for projects that have no access to commercial financing on account of steep transaction fees and a lack of equity investment readiness, together with a scarcity of financial expertise. In the initial phase, the platform planned to support around 60 projects and mobilise EUR 6.2 million of private financing from small investors.
- Countries
- Ghana, Peru, Rwanda
- IKI funding
- 3,069,444.21 €
- Duration
- 03/2019 till 12/2023
- Status
- completed
- Implementing organisation
- Frankfurt School of Finance & Management gGmbH
- Political Partner
-
- Ministry of Energy and Petroleum - Ghana
- Ministry of Environment (MINAM) - Peru
- Rwanda Green Fund
- Implementing Partner
-
- Allianz Climate Solutions GmbH
- Frankfurt School Financial Services GmbH
- GLS Gemeinschaftsbank eG
- Online
State of implementation/results
- The project is complete.
- frankly.green is a crowdinvesting platform that enables private investors to finance green projects and companies in emerging markets.
- Crowdinvesting is a relatively new type of financing that is mostly suitable for small and medium-sized companies and projects. Many individual private investors - the crowd - participate. In this way, private investors can make a difference even with small amounts.
- The profitability of the company plays an important role. The money is invested - a repayment and a certain return is expected. More precisely, in crowdinvesting, financial instruments are issued and brokered by platforms like frankly.green.
- frankly.green only brokers projects that meet certain ecological, social and economic criteria. In addition to the added value that the project must provide, the project must also not have any significant negative impacts.
- Green investments are not limited to a specific sector. In principle, potential for environmental protection can be found in every sector. Therefore, frankly.green arranges sustainable projects in the fields of agriculture, industry, energy, waste management, etc.. Especially in emerging markets, a very high impact can be achieved. Accordingly, the projects that can be found on frankly.green come from Ghana, Rwanda, Egypt and soon from Peru.
- Through frankly.green, every individual can make a direct contribution to climate protection - starting with an amount of 100 EUR. There are no complicated structures or special purpose vehicles. frankly.green finances local companies directly and attaches great importance to transparency. The platform is the interface between companies with a green agenda and investors interested in returns and environmental protection.
- frankly.green combines the expertise of the FS-UNEP Collaborating Centre and FS Impact Finance and works together with GLS Bank and strategic local partners: frankly.green was able to win Wangara Green Ventures in Ghana as a partner. This way, private investors can be offered a unique combination of impact investing and sustainable finance.
Latest Update:
12/2025
Project relations
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