A limited partner (LP) aimed at developing an automated ESG based screening tool to allow general partners (GP) to pre-assess their investments prior to approaching them. This was an online tool that would have reporting capabilities. The objective was to input pre-determined hurdles to investment which would allow general partners to identify and close gaps in their investment thesis before approaching them. The tool was Geographic Information System (GIS) based, with bespoke reporting requirements defined for both LP and GP use. LP reporting would provide insights to general trends and common errors in submissions which would lend, to determining limitations to investment on the continent, with GP reporting focused on identifying gaps in the investment theses and potentially connecting GPs to each other to facilitate the closure of these gaps.
EBS Advisory was tasked to compile a concept note which would define the model framework required to generate the desired outputs. Similarly, data input requirements from a GIS perspective as well as the GP input requirement were unpacked. To inform the development of this concept note, a desktop study was undertaken, with Ethiopia and the Agricultural sector used as a proxy to develop and test the concept.
One of the basic concept features was to define the tool through a robust workshop session held with the LP and a group of GPs across the continent. Once this stage of the study was concluded, a cost and time estimate for the development of the tool was provided. The concept and budget allocations were compiled into a board pitch which was used to sell the concept further internally for development.