Author: TIMOTHYRADIER

Report reveals 62% of African GDP reliant on nature services

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A recent report by The African Natural Capital Alliance (ANCA) during their co-session with FSD Africa at COP28 reveals critical insights into the exposure of African countries to nature-related risks.

  • 62% of African GDP is dependent on nature services, with 70% of sub-Saharan African communities relying on forests and woodlands for their livelihoods.
  • The reliance on nature services poses significant risks for many African countries due to climate change, deforestation, and degradation of ecosystems.
  • The report urges the African financial sector to foster sustainable financial practices and take proactive measures to address these risks.

According to the report “Nature Stress Testing: Exposure to Nature-Related Risks Across Africa”, 62% of African GDP is dependent on nature services, and 70% of communities in Sub-Saharan Africa rely on forests and woodlands for their livelihoods.

The report stated that the reliance on nature services poses significant risks for many African countries due to climate change, deforestation, and degradation of ecosystems. In addition, the report’s findings hold significant implications for financial regulators and private financial institutions across the continent, as their financial systems and portfolios are likely exposed to similar levels of risk.

With the African financial sector gaining momentum, the report emphasised a growing need for proactive measures to address nature-related risks and opportunities. The stress test explores different nature transition pathways and their potential impact on the profits of businesses across these economies. It identifies how these pathways could create knock-on risks for the financial sector, emphasising the need for proactive measures.

The report specifically assesses the exposure of the African banking sector to nature-related risks, offering consolidated findings from a nature stress testing exercise conducted in five African countries [Ghana, Mauritius, Morocco, Rwanda and Zambia]. These findings hold significant implications for financial regulators and private financial institutions across the continent, as their financial systems and portfolios are likely exposed to similar levels of risk.

According to the report, If current policies and business practices persist, some countries may face substantial nature-related physical risks, especially in sectors like agriculture. The World Economic Forum also estimates that $44 trillion of global economic value creation intrinsically relies upon while also degrading natural capital, with $195 billion being the estimated yearly loss of natural capital in Africa.

To address these risks, the report urges the African financial sector to take steps to foster sustainable financial practices. So far, 16 private financial institutions across seven countries are currently piloting or in the process of piloting the Taskforce for Nature-related Financial Disclosures (TNFD) framework.

The ANCA report provides valuable insights into the challenges and opportunities faced by African economies as they grapple with the impact of nature-related risks. By working together, financial regulators, private financial institutions, and other stakeholders can take proactive measures to address these risks and foster nature-positive African economies.

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FSD Ethiopia CEO to Step Down

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7 December 2023

FSD Ethiopia announces that its CEO, Mr Ermias Eshetu, has informed the Board that he will be stepping down as CEO to pursue other interests after two years at FSD Africa and FSD Ethiopia. The Board will initiate the process of finding a new CEO in the coming weeks.

Mr Eshetu has confirmed his commitment to working with the FSD Ethiopia Board Chairman and other Board members on various matters to ensure a smooth transition.

FSD Ethiopia’s funders, the Bill & Melinda Gates Foundation, and the FCDO reaffirm on this occasion their full commitment to the ongoing programme in Ethiopia. The organisation is in a strong position to build on the excellent achievements of the past two years and to accelerate further the impact it is delivering for the Ethiopian financial sector.

The Chair of FSD Ethiopia, Mr Admassu Tadesse, said: “The Board of FSD Ethiopia thanks Ermias for his energy and dedication in bringing FSD Ethiopia into existence. In doing so, he has contributed in an outstanding way to the development of financial markets in Ethiopia, positioning FSD Ethiopia as a trusted facilitator of change whose impact will be felt long into the future. We wish him well in his new endeavours.”

The CEO of FSD Africa, Mr Mark Napier, said: “I am grateful for the way Ermias has been able to foster an excellent and collaborative working relationship between FSD Ethiopia and a wide range of stakeholders across Ethiopia’s financial sector. He has laid a strong foundation for his successor who can count on FSD Africa’s full support”.

Right Honourable Andrew Mitchell MP joins stakeholders at COP28 to celebrate progress on the newly incorporated Dhamana Guarantee Company

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5th December 2023

Dubai, United Arab Emirates: On the dedicated Finance Day of COP28, the Right Honourable Andrew Mitchell MP, Minister of State of the United Kingdom for Development and Africa, joined Kenyan government and stakeholder representatives in the UK Pavilion to celebrate progress on the newly incorporated Dhamana Guarantee Company Limited (Dhamana). The new guarantee company has been created to unlock local capital for sustainable infrastructure and projects that will advance climate change mitigation and adaptation efforts across East Africa.

Dhamana was established in Nairobi, Kenya, by InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), and Cardano Development with support from FSD Africa. The company draws on the success of other PIDG-supported credit enhancement facilities, InfraCredit Nigeria and InfraZamin Pakistan, and recently received significant funding commitments from the African Development Bank (AfDB) and CPF Financial Services (CPF), who were represented alongside PIDG at the meeting with Mr Mitchell in Dubai.

Mr Mitchell said, “As our recent white paper set out, the UK is committed to supporting countries that want to draw on their own resources to tackle climate change. This investment will provide the guarantees needed to enable Kenyan pension funds to fund climate resilient infrastructure in Kenya. It is fantastic to see that PIDG, Cardano Development and FSD Africa are collaborating with the Africa Development Bank and a Kenyan pension fund to deliver this new approach and demonstrate how African resources can be used to fund African development.”

Dhamana’s initial focus of operations will be in Kenya, a country which holds significant wealth in pension,i life insurance and private wealth funds. However, in Kenya, as for much of East Africa, cash- flow based investments and infrastructure projects are largely reliant on US dollar denominated bank loans. Such loans seldom have sufficient tenor length to ensure project success, and can expose borrowers to currency exchange risk, challenges which Dhamana’s local currency guarantees will serve to mitigate.

Dhamana CEO, Christopher Olobo, said, “The focus of COP28 is around the need to unite, act and deliver for climate action. Dhamana epitomises this ethos by bringing partners together to facilitate a step-change in how we finance East Africa’s development, accelerate access to climate-resilient infrastructure and achieve the UN SDGs. With the backing of our shareholders, Dhamana will strengthen local capital markets, connecting bankable projects with untapped pools of domestic institutional capital and ensuring that investors have the comfort they need to use their funds for positive change.”

InfraCo Africa’s CEO, Gilles Vaes, said, “We are extremely proud of the work undertaken by all parties to establish Dhamana, and to attract significant funding commitments which will enable it to deliver on its vision.” Emphasising the significance of Dhamana for climate action, PIDG CEO, Philippe Valahu, said, “As part of the wider PIDG suite of credit enhancement facilities, Dhamana’s local currency guarantees will support the growth of local capital markets, unlocking domestic capital to underpin a thriving ecosystem for climate-resilient infrastructure and project development across East Africa.”

Joost Zuidberg, CEO Cardano Development enthusiastically stated, “The power of Dhamana lies in its ability to catalyse substantial investments from East Africa’s institutional capital, fortifying the bedrock for the sustained financing of the region’s burgeoning economic landscape. At the heart of Cardano Development lies our incubation and management of guarantee solutions for emerging and frontier markets, we are delighted to work alongside AfDB, County Pension Fund, InfraCo Africa, PIDG and FSDA on this innovation and together empower Dhamana with the essential support and capital required to realise this pivotal mission.”

Mark Napier, CEO FSD Africa said, “FSD Africa is committed to supporting local currency bond markets in Africa as well as local currency credit enhancement facilities as they play an important de-risking role. This role is pivotal in the mobilisation of climate finance from both local and international owners of capital to African economies that require different sources of capital to fund their green growth. FSD Africa is particularly pleased to provide seed funding for Dhamana Guarantee Company Limited’s Technical Assistance Facility which will provide project preparation and transaction support to potential issuers of innovative climate financing debt instruments, thereby increasing the pool of bankable climate-resilient projects in East Africa.”

Following the recent announcement of the African Development Bank’s Board approval for a US$10m equity investment into Dhamana, AfDB Vice President for Private Sector,

Solomon Quaynor, said, “Dhamana’s credit enhancement offering aligns well with several of AfDB’s strategic objectives, including our commitment to stimulating local currency debt markets as a route to unlocking new sources of green and sustainable finance for the real sector and infrastructure development across East Africa.”

Dr. Hosea Kili, CEO of CPF concluded, saying, “CPF Financial Services is excited to be part of the investors in Dhamana, a new guarantee company to serve the East African region. Dhamana is envisioned to unlock local currency debt from untapped pools of capital in Kenya and the East Africa region, providing guarantees for local currency bonds invested in by East African pension funds, insurers, and other financial institutions. This guarantee fund will enable infrastructure and other sectors to raise more money locally in KES, without the borrowers suffering from KES-to-USD devaluation.”

 

Dhamana Guarantee Company (Dhamana):

Dhamana is working to catalyse the development of domestic capital markets in East Africa. It does this by connecting significant untapped pools of domestic institutional capital with the real economy, such as new green infrastructure, and providers of credit to individuals and businesses. This increases access and the affordability of local capital, providing new low-risk opportunities for local investors. Dhamana will also serve to provide a portfolio of businesses with access to the local currency capital needed to deliver bankable projects, meeting the high demand for new affordable housing, transportation, water, and energy infrastructure, and promoting long term economic development. www.dhamana.com

The Private Infrastructure Development Group (PIDG)

PIDG is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity, and impact. Since 2002, PIDG has supported 211 infrastructure projects to financial close which provided an estimated 222 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC. www.pidg.org

InfraCo Africa:

InfraCo Africa is part of the Private Infrastructure Development Group (PIDG) and seeks to alleviate poverty by mobilising investment into sub-Saharan infrastructure projects. It does this by investing directly into early-stage projects and by providing project development leadership. Through its investments arm, InfraCo Africa can also provide equity to close a financing gap and start construction or fund innovative solutions that need support to scale-up, to pilot new products or enter new markets. InfraCo Africa is funded by the governments of the United Kingdom (through FCDO), the Netherlands (through DGIS) and Switzerland (through SECO). www.infracoafrica.com

Cardano Development:

Cardano Development (CD) is an incubator and fund manager, established in 2007. Through careful risk-management analysis in data poor settings, CD identifies scalable solutions that can help to make frontier financial markets more inclusive, investible, and sustainable to unlock lasting economic value. CD creates scalable solutions for currency, credit, and liquidity risks in these markets. With over USD 6 billion assets and USD 2.5 billion capital under management, CD supports eight scale-up funds: TCX, GuarantCo, Frontclear, BIX Capital, ILX Fund, IMFact, AGRI3 Fund and Nyala Venture. As well as six start-ups: NASASA CD, Octobre, Social Infra Ventures, The Development Guarantee Group, The Green Guarantee Company and new guarantee company with ongoing management services and corporate governance oversight. www.cardanodevelopment.com.

FSD Africa:

FSD Africa is a specialist development agency working to help make finance work for Africa’s future. Based in Nairobi, FSD Africa’s team of financial sector experts work alongside governments, business leaders, regulators, and policymakers to design and build ambitious programmes that make financial markets work better for everyone. Established in 2012, FSD Africa is incorporated as a non-profit company limited by guarantee in Kenya. It is funded by UK aid from the UK government. www.fsdafrica.org

 

African Development Bank (AfDB):

The AfDB Group is a regional multilateral development finance institution established to contribute to the economic development and social progress of African countries that are the institution’s Regional Member Countries (RMCs). The AfDB was founded following an agreement signed by member states on August 14, 1963, in Khartoum, Sudan, which became effective on September 10, 1964. The AfDB comprises three entities: the African Development Bank (ADB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). As the premier development finance institution on the continent, the AfDB’s mission is to help reduce poverty, improve living conditions for Africans and mobilise resources for the continent’s economic and social development. www.afdb.org

CPF Financial Services (Kenya):

CPF is a leading financial institution with its core in Pensions Management, boasting a substantial fund value of USD 1.06 billion in Assets Under Management. The institution has a strategic footprint extending across East Africa, providing a wide range of services, including Fund Administration, Trust Fund Services, Digitization, Archival Services, Training and Management Consulting. The CPF Group has subsidiary companies across various sectors including Laser Infrastructure & Technology Solutions (LITES), Laser Property Services, Laser Insurance Brokers (LIB), CPF Asset Managers and Rukisha Advances Solutions (a cutting- edge payments platform). www.cpf.or.ke

AfricInvest and Africa50 provide $20 Million in financing to Africa Healthcare Network (AHN) for a continent-wide expansion.

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Nairobi, Kenya, November 22, 2023 – Africa Healthcare Network (AHN), a leading provider of dialysis services in Africa, has secured $20 million in equity and debt funding, from Africa50 and AfricInvest, two leading African institutions, and Tokyo-based Ohara Pharmaceutical Co., Ltd.

The funding will enable AHN to accelerate its growth and address significant gaps in the availability of high quality, affordable renal care across Africa.

Africa50, which led the equity funding, invests in high-impact, high-growth businesses and projects across the continent. AfricInvest, which provided debt financing through its Transform Health Fund (THF), is a leading pan-African investment platform, dedicated to supporting businesses that drive economic growth and social development. THF is an innovative blended-finance fund that invests in locally-led health supply chain, care delivery, and digital solutions in Africa. Under the leadership of AfricInvest, along with the Health Finance Coalition, a group of leading global health funders hosted by Malaria No More, the fund finances enterprises that improve health system resilience and pandemic preparedness across the continent.

The investment will enable AHN to:

  • Expand Access to Care: AHN has 45 clinics today and plans to continue growing rapidly, entering underserved regions to expand access to life-saving treatment.
  • Enhance Technology and Disease Prevention: The funding will also accelerate AHN’s technological capabilities, including early identification and management of kidney disease.
  • Strengthen its Healthcare Workforce: AHN will further invest in training and development programs for its 500+ employees, continuing to elevate the standard of care.
  • Maximize Development Impact and Sustainability: Adhering to the highest ethical and ESG standards, AHN aspires to be a role model in healthcare and a force for good in its local communities.

Matt Williams, CEO of AHN, expressed his excitement, stating, “With the support of Africa50 and AfricInvest, we are well-positioned to make a dramatic impact in the fight against kidney disease and improve the overall healthcare landscape in Africa.”

Raza Hasnani, Managing Director and Head of Infrastructure Investments at Africa50, remarked, “We are excited to be partnering with AHN to further their mission of improving access to quality kidney care across Africa. The AHN team has already achieved significant milestones, and we look forward to being part of the journey to impact more lives. This partnership is aligned with Africa50’s strategic focus on healthcare, a sector which can deliver both positive impact and attractive investment returns.”

Faisal Jiwa, Co-Lead of AfricInvest’s Transform Health Fund, added, “We are proud to be partnering with the entire team at AHN in its mission to improve access to quality, affordable healthcare services in Africa, which is fully aligned with THF’s impact-first strategic focus along the healthcare value chain. We believe AHN is uniquely positioned to build the healthcare ecosystem across the continent, led by a strong culture of impact and operational excellence.”

Nikhil Pereira-Kamath, Executive Chairman and Co-Founder of AHN, reiterated the power of the partnership, “We’ve seen tremendous growth in recent years, growing from 17 centers at the end of 2021 to nearly 50 centers and over 500 team members by year end 2023. With an acute focus on high quality patient care, we look forward to Africa50 and AfricInvest supporting our rapid expansion across the continent with the ambitious goal of achieving 100+ centers by 2025, and further growth beyond.”

The collaboration between AHN, Africa50, and AfricInvest underscores the importance of high-impact partnerships in addressing pressing healthcare challenges in Africa. As part of the transaction, AHN received support on completion deliverables related to the transaction from CrossBoundary, an advisory group focused on unlocking private capital in underserved markets.

About Africa Healthcare Network (AHN):AHN is a leading dialysis services provider in Africa, dedicated to improving access to quality healthcare for patients with kidney disease. AHN operates a network of dialysis centers across the continent, offering world-class treatment, state-of-the-art facilities, and a compassionate approach to patient care. For more information, visit: www.africahealthcarenetwork.com

About Africa50:Africa50 is an infrastructure investment platform that contributes to Africa’s growth by developing and investing in bankable projects, catalyzing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact. Africa50 currently has 33 shareholders, comprised of 30 African countries (including the governments of Tanzania, Kenya, and Rwanda – all countries of operation for AHN), the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib. For more information, visit: www.africa50.com About AfricInvest:AfricInvest is a leading pan-African investment platform active in multiple alternative asset classes including private equity, venture capital, private credit, and listed equities. Over the past quarter century, we have raised more than $2bn to finance almost 200 companies at various development stages, delivering value and impact for our investors, portfolio companies, and the communities we serve. Our 100-strong team of investment experts in more than ten offices across three continents has a proven track record of providing attractive risk-adjusted returns while spurring productivity growth, creating jobs, and ultimately improving African lives through inclusive and sustainable development. For more information, visit: www.africinvest.com About Ohara Pharmaceutical Co., Ltd.:Ohara Pharmaceutical Co., Ltd is a pharmaceutical company with major business of orphan drug discovery and generic drug development and manufacturing. In particular, Ohara focuses on the orphan drugs in the field of childhood cancer and high quality accident-preventive generic drugs. Under the current rapidly changing environment where medical treatments and techniques are dramatically improving, we are pursuing providing total healthcare solutions with prevention, diagnosis and aftercare to enhance the quality of patient’s life. We are promoting to develop total healthcare programs in Asia and Africa in alliance with global innovators. For more information visit: www.ohara-ch.co.jp/english/  For media inquiries, please contact: Africa Healthcare Network: Saksham Bhandari, Chief of Staff, Tel: +254 700 420 113, saksham.bhandari@africahealthcarenetwork.com

Africa50: Nana Boakye-Yiadom, Senior Communications Coordinator, Tel: +212 666166308, n.boakyeyiadom@africa50.com

AfricInvest: Ann Wyman, Senior Partner, Tel: +216 71 189 800, ann.wyman@africinvest.com and Jordan Filko, Investment Manager, Tel: +254 725 705 773, jordan.filko@africinvest.com

FSDAi Nyala Facility extends USD 1 million to WIC Capital to boost gender lens investing and increase financing to Small and Growing Businesses

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Senegal, 5th December 2023 – FSDAi Nyala Facility BV has extended a USD 1 million loan to WIC Capital, a local capital provider investing in Senegal and Côte D’Ivoire that focuses on financing women-owned and managed Small and Growing Businesses (SGBs).

WIC Capital is led by Ms. Evelyne Dioh Simpa, a Fund Manager with a wealth of finance experience and supported by a robust team and board. WIC Capital has a strong alignment with FSDAi Nyala Facility due to its unwavering commitment to promoting access to finance for female owned SGBs needed to expand their businesses.

For example, in Senegal, a mere 3.5% of women entrepreneurs access credit from financial institutions. WIC Capital focuses exclusively on investing in businesses owned and/ or led by women, demonstrating that the financing gap for female-owned enterprises in West Africa can be addressed. Furthermore, WIC Capital stands out for its innovative product structures tailored to local SGBs. Notably, its origins in an exclusive women’s angel network, adds to its uniqueness within the FSDAi Nyala Facility portfolio, making it an invaluable learning opportunity for all investors in the small and growing businesses investing ecosystem.

Women entrepreneurs in Africa not only encounter challenges when it comes to access to finance but also grapple with the scarcity of platforms offering the essential knowledge and assistance required for the expansion of their businesses.

WIC Capital works with early-stage, women-owned/ led enterprises to provide first-time external capital as well as business training and mentorship. Also, WIC Capital leverages a large network of successful women entrepreneurs and civic leaders to co-fund and support these emerging businesses. The business training and mentorship is provided by the WIC Académie through a technical assistance program. Alongside the women’s angel network, other funders of WIC Capital include foundations, multilateral donor agencies, and development financial institutions.

“Through its investment in WIC, FSDAi is backing an African women-led capital allocator with deep local angel networks, a creative funding structure and financing solution for small and growing businesses in West Africa. With our investment, WIC can position itself to attract bigger pools of capital to expand its strategy in Senegal and Cote d’Ivoire,” noted Anne-Marie Chidzero, Chief Investment Officer at FSD Africa Investments.

“I am proud that the UK is investing US$1 million in WIC Capital through Financial Sector Deepening Africa Investments. I have seen first-hand WIC Capital’s inspiring work and know that they are a deeply impact-focused organisation. They support young female entrepreneurs in a market where access to funding is a huge barrier for their growth. At the heart of building sustainable and inclusive businesses lies the need to advance gender equality through women’s economic empowerment. I look forward to continuing our collaboration to create jobs and empower Senegal’s talented women,” noted Juliette John, UK Ambassador to Senegal.

“FSDAi is playing a critical role in the development of an emerging asset class of small business growth funds Africa, particularly women-led funds. The funding of WIC Capital represents an important confirmation of WIC’s innovative approach to financing early-stage women businesses in West Africa.  By melding their business development services, women investment club mentoring with investment capital, WIC provides a comprehensive approach to the challenges that to date have constrained Africa’s women-led businesses to growth and thrive.  We believe this commitment will be the foundation upon which other DFIs and local institutional capital holders can also provide funding to WIC Capital and other innovative local capital managers seeking to invest in Africa’s women businesses,” noted Drew von Glahn, Executive Director of the Collaborative for Frontier Finance.

“WIC Capital’s mission aligns with FSDAi’s desire to address the disfunctions of African capital markets, which include the structural barriers that small businesses face in accessing financing, specifically when they are women led. This partnership will be catalytic in the development of a local capital provider that has the potential to profoundly change the local ecosystem, by providing risk capital and business support to women led small and growing businesses (SGBs), with the ultimate goal of increasing women’s agency and economic benefit. With this investment, we are closing our first fund, and we believe this partnership will help accelerate the mobilization of our second fund to serve SMEs generating a strong impact in Senegal and Côte d’Ivoire,” concluded Evelyne Dioh, Managing Director of WIC Capital.

Mauritius Commercial Bank (MCB) Capital Markets advises EnVolt on its inaugural Green Project Bond issue

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MCB Capital Markets, the Investment Banking, Asset Management and Principal Investments arm of MCB Group (www.MCBGroup.com), has advised EnVolt on its inaugural issue of MUR 510m (USD 11 million) Green Project Bonds under its MUR 2 billion (USD 45 million) Multicurrency Green Bond programme.

EnVolt, the renewable energy development arm of ENL Group (“ENL”), a diversified investment holding company in Mauritius, is engaged in the construction of 13 solar roof and ground mounted facilities across the island with an aggregate capacity of 14 MWh and an estimated project cost of MUR 680 million (USD 15 million).

The issuance represents a major milestone for the Mauritian debt capital markets. It is the first time that a renewable energy project is financed by a bond issue. It is also the first Green Project Bond issued under the Green Bond Principles 2021 of the International Capital Market Association (ICMA). In line with the FSC Guidelines and international best practices, ENL’s Green Bond Framework was independently reviewed by Morningstar Sustainalytics. FSD Africa, the UK’s financial sector development organisation, provided technical support on the bond programme, as part of its wider Green Bonds programme.

The bond, which was rated by CARE Ratings Africa, raised fixed rate financing in Mauritian Rupees with a tenor of up to 17 years and attracted a broad investor base comprising banks, asset managers and pension funds. MCB Ltd was the largest investor in the bonds.

The project aligns seamlessly with and contributes to the Mauritian government’s ambition to achieve 60% renewable energy production by 2030. As the foremost banking group in Mauritius, MCB fully endorses this initiative, which endeavours to accelerate the country’s transition towards renewable energy. MCB is committed to supporting the transition to a circular and greener economy in line with Mauritius’ Nationally Determined Contribution (NDC), and to fostering local production.

Gilbert Espitalier-Noel, CEO ENL Group, said: “Our group positions itself as a major player in the renewable energy sector. Our initiatives align with the national strategy to produce up to 60% of Mauritius’ energy needs from renewable sources by 2030. Our green bond program will finance the expansion of our production capacity and enable us to contribute significantly to improve the country’s energy mix and energy security.”

Rony Lam, CEO MCB Capital Markets, said: “We are proud to have advised EnVolt on this landmark transaction, which sets international standards for the issuance of Green Project Bonds in Mauritius. This transaction reflects the rapid development of the local currency bond market over the past eight years. The deployment of local resources to finance the domestic economy and infrastructure projects is vital to the development of the African continent.”

Mark Napier, CEO FSD Africa, said: “FSD Africa is pleased to have supported everyone involved in this historic green bond issuance by EnVolt, which we hope sets a precedent for further such transactions not only in Mauritius but across the wider SADC region, building the strength of domestic African capital markets and, crucially, delivering financing routes for vital energy transition projects, which can accelerate Africa’s energy and climate security.”

Charlotte Pierre, UK High Commissioner to Mauritius, said: “International bond markets remain among the most effective and good value options for financing energy transition and major infrastructure investment programmes. We hope that many more African countries will follow the Mauritius example.”

Distributed by APO Group on behalf of The Mauritius Commercial Bank Ltd (MCB) Group.

About EnVolt:
EnVolt Limited is a subsidiary of ENL Group (“ENL”), a diversified investment holding company based in Mauritius. With over 100 subsidiaries and total assets totalling in excess of USD 2bn, the company has been a major player in the Mauritian economy since 1821. EnVolt Limited has a broad objective of developing and implementing ENL’s renewable energy initiatives. The Company, which has been operating since 2018, owns and operates 10 solar farms with a capacity of 4.1 MW under the Medium-Scale Distributed Generation 1 scheme of The Central Electricity Board of Mauritius.

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African Development Bank approves $10 million investment in Dhamana Guarantee Company Limited, East Africa

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ABIDJAN, Côte d’ivoire, 21 November 2023 -/African Media Agency(AMA)/-The Board of Directors of the African Development Bank Group has approved a $10 million equity investment in Dhamana Guarantee Company Limited to support the use of capital markets as an alternative source of long-term funding for infrastructure and the real sector in East Africa.

Dhamana will be domiciled in Kenya as a limited liability company with a regional mandate to provide credit guarantees on debt capital market instruments. The Bank Group’s financing will enable Dhamana to issue guarantees for debt instruments. These local currency bonds are intended to boost the credit rating of the instruments to crowd in investment from pension funds, insurance companies and sovereign wealth funds to finance infrastructure and the real sector in East Africa.

The Bank, together with InfraCo Africa (part of the Private Infrastructure Development Group), Financial Sector Deepening Africa, and local institutional investors and other partners, will be supporting the operationalization of Dhamana.

Dhamana  will support access to financing for key sectors including transport, water, renewable energy, and waste management, among others. Dhamana is committed to catalyze financing to assist the scale-up of green and sustainable financing into East Africa. Its credit guarantee activities should provide investors with the necessary comfort to support the allocation and intermediation of pools of private institutional investors’ funding into infrastructure.”

Nnenna Nwabufo, African Development Bank Director General for the East Africa region, said, “The African Development Bank is pleased to continue to support the operationalization of innovative solutions such as those provided by Dhamana to unlock and channel long-term local currency funding towards the real sector.

PIDG’s CEO, Philippe Valahu, said, “African Development Bank joining PIDG marks a significant milestone for the Dhamana Guarantee Company. This additional equity will allow Dhamana to further mobilise significant untapped pools of domestic institutional capital into East Africa’s real economy, such as new green infrastructure, and providers of credit to individuals and businesses. We are committed to catalysing the development of domestic capital markets in Africa, as we seek to unlock investment for bankable, climate-resilient projects to be delivered with the scale and urgency required to meet the challenges of climate change and welcome the support of African Development Bank in Africa to help achieve this goal.

Ahmed Attout, African Development Bank Acting Director for Financial Sector Development, said: “The Bank’s support for Dhamana shows the catalytic role and potential of guarantee companies in leveraging opportunities for real sector and infrastructure financing in local currency and local corporate debt capital markets deepening in the East Africa region. The investment in Dhamana follows the Bank’s priority to mobilize institutional financing for infrastructure investment in East Africa.”

The Bank’s partnership with Dhamana advances several strategic objectives including to help stimulate local currency debt market financing across diverse infrastructure sectors and enhancing economic diversification and competitiveness in the region. The intervention also aligns with the Bank’s priorities to promote regional integration including through improved infrastructure development, promotion of inclusive and sustainable industrialization, and fostering innovation.

The investment aligns with African Development Bank strategic efforts, in collaboration with development partners, including PIDG, to operationalize credit enhancement companies in selected Regional Member Countries.

Distributed by African Media Agency (AMA) on behalf of African Development Bank.

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Money Does Grow on Trees

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In September 2023, Kenya held the first Africa Climate Summit, that brought together players from the private and public sectors from various African nations and engaging stakeholders from outside the continent. The Summit provided a platform for discussions around strategies that would mitigating and building resilience against climate change. Among other topics, adoption of innovative solutions such as agroforestry, as a mean to combat climate change and preserve our planet’s ecosystem, was discussed.

Despite being centuries old, agroforestry which aligns with modern sustainability development goal, has been gaining traction in the recent years. The fusion of agriculture and forestry holds the potential to unlock both environmental benefits and economic opportunities. Notably, it enables the trade of carbon credits, offering financial incentives to those who embrace sustainable land management and carbon sequestration through climate-smart agriculture.

Agroforestry presents a powerful solution for carbon sequestration, leveraging the natural capacity of trees as carbon sinks. Smallholder farmers can significantly reduce carbon footprints through offsetting emissions by integrating trees with crop cultivation hence practise smart climate agriculture. This transition offers them the potential for financial gain through participation in carbon trading, ultimately enhancing their livelihoods and benefiting local communities at large.

The adoption of agroforestry not only delivers environmental benefits but also fosters economic empowerment, achieved through incentivising sustainable practices, thus the small-holder farmers can benefit economically by adopting environmentally friendly techniques. Agroforestry empowers the farmers to diversify their income streams and reap the benefits of practising sustainable land management such as improvement of soil quality and curbing climate change while preserving the planet for future generations.

Additionally, local communities can harness the revenue generated from carbon sequestration projects. Community development in healthcare, education and infrastructure can be enhanced by reinvesting the income form the carbon sequestration projects. And so, The advantages of agroforestry extend beyond individual farmers and communities. Entire countries and the African continent as a whole stand to gain from cleaner air, healthier ecosystems, and increased environmental resilience.

To realize this potential, African governments, the private sector and non-governmental organizations should recognize the value of agroforestry and provide support to accelerate its adoption. Actions that encourage agroforestry and facilitate access to carbon markets can advance the growth of this transformative and innovative practice.

Promoting actions that encourage agroforestry and facilitate access to carbon markets can drive the growth of this transformative and innovative practice. Development organizations such as the African Development Bank, International Fund for Agricultural Development and Green Climate Fund are funding programmes that enable carbon sequestration in Africa. Their initiatives have over time supported restoration and conservation of the African biodiversity, soil, and water systems. These mechanisms have aided in powering the transformation of African landscapes into hubs of carbon sequestration.

Evidently, it is the achievement of the Acorn Agroforestry Carbon Programme by the Rabobank through its partnership with project coordinators including FSD Africa and cooperatives working directly with smallholder farmers in Africa, among other partners. Through the programme, the smallholder farmers particularly those in areas impacted by climate change, are enabled to transit to agroforestry.

The smallholder farmers are equipped to earn additional income through sequestering carbon from their carbon-capturing agroforestry; as the continent’s air gets cleaned up.

Therefore, agroforestry with its capacity to offset carbon emissions and improve the well-being of African communities, magnifies the synergy of environmental conservation and economic prosperity. It underscores the promise of sustainability as a pathway to a greener and more resilient future.

Beyond being a financial asset, carbon credits harvested from agroforestry projects serve as a testament to the harmonious coexistence of nature and humanity, representing an investment in a future where our planet becomes healthier from the choices we make today.

Africa, endowed with biodiversity and natural resource that offers an opportunity for environmental and economic transformation. Carbon. Carbon sequestration in Africa is not merely a dream but a tangible and innovative solution demonstrating that indeed that money does indeed grow on trees, which are our partners safeguarding the environment and securing our future. These trees are the lungs of our planet.

NIC collaborates with FSDAfrica to digitize Ghana’s insurance sector

Posted on by TIMOTHYRADIER

The National Insurance Commission (NIC) has partnered with the Kenyan-based Financial Sector Deepening (FSD) Africa to modernize and improve the insurance sector in Ghana.

This partnership aims to digitize the sector, making it more accessible to the citizens of the country.

During a press briefing on the InnoLab InsurTech by FSD held on Friday, October 27, 2023, in Accra, the Acting Commissioner of the NIC, Michael Andoh, explained that this initiative is a response to the increasing digitization of various aspects of life.

Currently, only about 7 million Ghanaians are registered with the National Insurance Commission.

“Life is becoming increasingly digitized, and virtually everything is moving online. People live and transact on the internet.

“Therefore, the insurance industry also needs to embrace this technological revolution to ensure its continued existence,” he stated.

Elias Omondi, a representative of FSD Africa, emphasized that the initiative aims to bring about positive change.

“As FSD Africa, we aim to make finance work for Africa’s future. We assess the needs of the people, considering the environments they live in, and focus on supporting change agents who can drive the necessary changes.

“We have already supported more than twelve innovators in Ghana and continue to support innovators to help create the change and resilience that Ghana truly needs,” he explained.

ID/MA

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Ghana’s leading digital news platform, GhanaWeb, in conjunction with the Korle-Bu Teaching Hospital, is embarking on an aggressive campaign which is geared towards ensuring that parliament passes comprehensive legislation to guide organ harvesting, organ donation, and organ transplantation in the country.

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