Shared Value

“We are generating attractive returns and creating substantial co-investment opportunities for our investors, while developing positive economic, environmental and social impact for the local economy.”

Eric Idiahi, Verod Capital’s Co-founder and Partner

Our Policy

Verod is a responsible investor with a commitment to creating shared value deeply embedded through its operations both on firm and portfolio level. Verod aims to generate economic value in a way that also produces value and sustainability for the communities in which it operates.

Underpinning its corporate philosophy and growth path is an appreciation that its growth objectives cannot be achieved effectively without a committed focus on sustainable development; Verod firmly believes that successful investing and responsible investing are not mutually incompatible.

We are commited to

Health and Safety

Verod is committed to safeguarding the health and safety of its employees, employees of underlying investee companies, and other stakeholders (including members of the host communities), by adhering to stringent policies on working conditions and labor rights. Verod insists on proper PPE for construction or manufacturing, adopts high standards in its food processing and handling, and typically implements processes to deal with waste management (including any hazardous waste), and protection of local resources such as groundwater and where appropriate, will also devise robust biodiversity conservation plans to protect local wildlife and ecosystem.

Job Creation

Verod typically aims to upgrade working conditions for jobs directly created or saved by Verod’s investments by standardizing terms of employment and offering better than minimum wages, including health care, pensions and related benefits. Verod actively supports the creation and expansion of indirect employment opportunities through partnership with local suppliers and service providers.

Developing Local Industries

Verod promotes the use of cutting edge technology in operation of its investees companies. Verod has also developed or supported companies that provide a viable import-substitution which results in technology transfer and development of human capital. This in turn has led to further advancement of local industries through partnership with local providers, knowledge transfer and know-how sharing, which can act as a catalyst for technological advancement within these local industries.

Energy Efficiency

Verod consistently promotes the adoption of energy-efficient technologies and processes in all of its investee companies and where possible, adopts eco-friendly energy sources that reduce environmental degradation, produce lower levels of CO2 emissions and are generally more cost effective.

Community Development

As far as practicable, Verod strives to employ from within the local community in which it operates and is a believer in early engagement with the community by adopting a proactive stakeholder engagement plan. Verod has donated free medical services, participated in youth apprentices, provided support to local schools and built roads that connect rural areas. Verod has found that improving local trading links positively impacts the local economy (and livelihood) of its surrounding communities.

Women Empowerment

Verod is a major advocate of gender equality and women empowerment and strives to ensure that all of its investee companies operate as equal opportunity employers of labor with well-entrenched rules against discrimination. Verod has invested in portfolio companies that are run by women, or that have predominant female senior management teams.

Case Studies

GZ Industries Limited

GZ Industries Limited (“GZI”) is West Africa’s first and leading aluminium beverage can manufacturing business. The company manufactures and promotes the use of aluminium cans, which are 100% recyclable by local and multinational brewing and beverage companies. Amongst the shared values initiatives promoted, GZI shows its commitment to the local community by providing boreholes for clean water, good roads, recreational facilities and free medical services.

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GZI currently runs a recycling scheme involving school students collecting used cans and exchanging them for school equipment and or facility repairs. GZI instituted a proactive policy to employ staff from its host communities and provides substantial engineering and technical training, as well as accommodation for staff members. GZI further demonstrates its commitment to the environment via the use of gas turbines to reduce emissions, and by using plastic returnable pallets (first in Nigeria) to reduce waste and combining heating and cooling systems to reduce energy requirements. On World Malaria Day, GZI presented mosquito nets to some of the inhabitants of Gberefu Village and in conjunction with members of the Rotary Club in Badagry Lagos State and the Brace Youth Network ,donates to local orphanages.

Niyya Food and Drinks Limited

Niyya Food and Drinks (Niyya), is an integrated farm and juice production business that owns a processing facility, dairy farm, orchards, agricultural lands and manufactures the Farm Pride brand of natural fruit juices and fresh yogurt. Its entire operation is designed and structured around themes of creating shared value which ensures maximum efficiency with due consideration for conversion and sustainability of the environment.

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Water is sourced from an earth dam and is delivered through a modern drip irrigation system that ensures precise water application and minimum water use. Fruit production is done through a system designed to optimize productivity within the agro-ecosystem, including soil organisms, plants, livestock and people.

In addition, as part of its investment program in Niyya, Verod restructured employment contracts and improved overall benefits for casual workers (including providing healthcare); successfully engaged with both local chiefs and Fulani herdsmen; sources some of its requirements from local out-growers; increased the number of female workers; instituted new health & safety procedures; provided transportation for farm workers; and upgraded numerous production and housing facilities around the farm. Niyya is poised to accelerate its growth and become Nigeria’s leading producer of all-natural fruit juice using 100% made-in-Nigeria ingredients, and is in the process of potentially becoming the first truly ‘organic’ farm in Nigeria.

Shaldag Nigeria Limited

Shaldag is a large-scale greenfield recirculating aquaculture company for the production of Catfish and Tilapia. Nigeria currently spends around US$1bn per annum importing fish, Shaldag is set to substitute that for fresh, quality local supply. Verod has been proactive in engaging with the local community (the “Odo-Temu Community”) to ensure the project is equally beneficial to the community's long-term prosperity.

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One of the benefits brought on by the development of the facility include the construction of a road to link the community to the outer established roads in the area. The road is expected to improve transportation of goods in and out of the Community, and provide unfettered access to old community sites of local importance. Shaldag has also introduced policies to hire and train locals, and to share knowledge of best practices in aquaculture with local farmers. Shaldag plans to donate fish waste, free-of-charge, to local farmers for use as fertilizer. Furthermore, Shaldag has instituted a responsible waste management plan and implemented a biodiversity conservation plan to control and monitor any impact on the surrounding ecosystem. Further, the company is looking into conducting a ground water resource study to minimize any effects on the local water supply.