Private Sector

CAFI significantly expanded its engagement with the private sector through the launch in 2024 of its $100 million USD Private Sector Investment Facility, aiming to unlock private capital and expertise for deforestation-free and inclusive development in Central Africa.

Many of the drivers of forest loss—such as agriculture, charcoal production, and logging—are rooted in market failures, where standing forests have no economic value. CAFI’s private sector Facility responds to this challenge by directing investment into business models that make conservation economically viable, socially inclusive, and climate aligned.

The Facility is exploring results-based mechanisms, such as Payments for Environmental Services (PES), to further incentivise private investments aligned with climate and forest goals, helping shift the focus from process to verified outcomes.

CAFI’s private sector portfolio has reached 85 million dollars, with funding directed to &Green, IDH and CFC.

Feasibilities studies

Through its Technical Assistance Facility, CAFI has funded critical feasibility studies, listed below, to assess

• qualitative and quantitative baseline data for proposed activities
• clear reference points for expected impacts
• technical feasibility of proposed models and innovations
• analyses of environmental impact, including risks and mitigation strategies
• social benefits, including potential for job creation and inclusion
• economic viability and business case for concessional financing
• scalability and replication potential beyond the initial intervention area
• financial and risk analysis, demonstrating why public support is critical to unlocking co-financing