Verdant Capital Hybrid Fund Supports Mogo in Formalizing Environmental and Social Management Practices
Verdant Capital Hybrid Fund (VCHF), through its Technical Assistance Facility (TAF), supported Mogo Auto Limited (Mogo) in formalizing its environmental and social management practices through the development of policy based Environmental and Social Management System (ESMS).
The ESMS is based on Mogo’s Environmental and Social Policy and documents existing environmental and social practices and risk areas in a manner proportionate to the company’s activities and risk profile. This initiative demonstrates VCHF’s commitment to strengthening environmental and social risk management practices across its investee companies.
KfW, on behalf of The German Federal Ministry for Economic Cooperation and Development (“BMZ”) has provided a technical assistance facility (“TAF”) in relation to the investment of KfW in VCHF. Through this engagement, the ESMS was developed with support and guidance provided by VCHF’s Technical Assistance Facility, and the support aimed to enhance Mogo environmental and social management framework and align its operations with international environmental and social standards.
As part of the engagement with VCHF, opportunities were identified to strengthen how environmental and social considerations are addressed within Mogo’s existing policies, processes, and operational practices, including areas such as consumer protection, labor and working conditions, data protection and privacy, stakeholder engagement, and governance.
Mogo is a non-bank financial institution operating as a licensed and regulated digital credit provider in Kenya and it offers accessible and affordable financing solutions aimed at promoting mobility, connectivity, and digital financial inclusion for customers in underserved markets. Mogo’s products include phone financing, asset financing (cars, boda boda and tuk tuks), logbook loans, and check-off loans.
By expanding access to transport and productive assets, Mogo aims to promote upward social mobility and enable income-generating opportunities for individuals and small businesses across Kenya.