The IFC has announced it is working with South Africa's Novare Equity Partners to 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 is the first under the IFC's Greening Real Estate Investment Portfolios (GRIP) Africa programme, which was launched in 2022 to help major real estate portfolio owners define and implement decarbonisation strategies, including energy efficiency measures, long-term renewable energy solutions and other carbon removal and sequestration opportunities. 

The IFC's support for Novare will include a baseline greenhouse gas emission inventory review, a resource efficiency assessment of its property portfolio across Sub-Saharan Africa, and the development of a decarbonisation strategy for Novare’s assets in Mozambique, Nigeria and Zambia.

The IFC states that buildings are responsible for about 40% of global energy-related carbon emissions, but green buildings can drastically reduce emissions in the construction and operation phases, while also lowering utility costs by 30% compared to conventional buildings.

"Novare is thrilled to partner with the IFC as the first firm to receive support in the IFC GRIP Africa programme," said Lerato Kumalo, chief ESG and impact officer at Novare Equity Partners. "With the 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 7% annually over the next few years, taking strategic, proactive steps to decarbonise 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 the programme's successful rollout in other regions. 

As of March 2024, GRIP has engaged in seven greenhouse gas reduction projects in Latin America, the Caribbean, Eastern Europe and Turkey, impacting over 17 million square metres of gross leasable area.

The programme helps to design greening measures based on the client’s profile, regional context and international best practices. The IFC typically encourages maximising energy efficiency measures onsite such as smart meters for tracking energy usage, timers on taps and reflective roofing and long-term renewable solutions such as solar, while also exploring carbon sequestration and removal efforts to reach net zero.  

According to IFC research, green buildings will represent an investment opportunity of almost US$25 trillion in emerging markets by 2030 and growing numbers of real estate owners, developers, tenants and industry groups in Africa are seeking to meet green building standards.

The IFC also supports the green transition of the industry through its EDGE platform, which helps real estate developers and building owners to design and certify resource-efficient buildings. 

The IFC is the private sector arm of the World Bank.

Novare invests in commercial real estate such as shopping malls and office buildings. Two of its office buildings in Zambia are already EDGE-certified.