Category: Press release

Africa’s Asset Management Sector Hits US$ 600 Billion, New Industry Data Shows Investment Remains Conservative

Posted on by Kihingu Inc

Closing the gap between the scale and impact of long-term savings is critical to Africa’s ability to mobilize domestic capital

9am, Nairobi, Kenya, 27 January 2026: Africa’s pension funds and other collective investment schemes other institutional now hold over USD 600 billion, substantial long- term capital, ranging from USD 17 billion in Nigeria to USD 390 billion in South Africa to USD 20 billion in Kenya, yet most remains concentrated in government securities rather than productive sectors such as infrastructure, housing and SMEs, according to a new Landscape Report on Africa’s Institutional Capital Markets.

The report, which was released at the continent’s first Pan-African Fund Manager’s Alliance (PAFMA) Conference in Nairobi, examines why this persists and what could change. It concludes that closing the gap between the scale and impact of long-term savings is critical to financing Agenda 20631 – The African Union’s 50-year blueprint for transforming Africa into a global powerhouse – and the continent’s ability to mobilise and deploy its own domestic capital.

Commissioned by FSD Africa, in partnership with the African Pension Supervisors Association (APSA) and the Pan-African Fund Managers’ Alliance (PAFMA), the report highlights that in many markets, less than 10% of pension assets are allocated to productive sectors such as infrastructure, housing, private credit or small and medium- sized enterprises. It calls for increased coordination, market infrastructure and scalable investment pathways that allow long-term capital to be deployed productively.

The report, which draws on data compiled from pension funds and asset managers across multiple African markets, offers a rare snapshot of how long-term domestic savings are currently allocated and provides actionable insights and recommendations to help unlock the full potential of African pension and asset management systems.

It was launched in tandem with a new interactive database, the APAM Data Hub, containing up-to-date information on Africa’s pension systems and asset management industry along with analytical tools, providing a valuable resource for policymakers, regulators, industry practitioners, and researchers.

Key findings of the Report include:

  • Institutional savings are larger than often assumed, with assets under management in Collective Investment Schemes (CIS) ranging from USD 3 billion in Nigeria to USD 200 billion in South
  • Asset allocation remains highly conservative, with government bonds accounting for approximately 60–70% of pension fund portfolios in many countries. 90% in Ghana, 60% in Nigeria and 50% in
  • Pension funds now form the backbone of domestic sovereign debt markets, supporting short-term stability but increasing long-term exposure to fiscal and inflation
  • Shallow capital markets and limited investable pipelines continue to constrain diversification, even where institutional appetite

Commenting on the findings, Evans Osano, Chief Financial Markets O`icer at FSD Africa, said: “This new report shows how unevenly pension and asset management markets have evolved across the continent, but it also indicates how significantly Africa’s institutional savings have grown overall as a pool of largely untapped long-term capital. Mobilising domestic institutional pools of capital for Africa’s development priorities will require a concerted ‘business unusual’ approach. We need new asset classes, new partnerships, and new enablers.”

Tapologo Motshubi, Chair of PAFMA, added: “Progress will depend on sustained collaboration between fund managers, regulators, project sponsors and policymakers. PAFMA’s role is to provide a platform for that collaboration, helping align market practice, regulatory thinking and investment opportunities so that domestic institutional capital can play a larger role in Africa’s long-term development.”

Since its introduction by FSD Africa at the Africa Climate Summit in 2023 as part of its mission to build deeper, more coordinated capital markets, PAFMA membership has grown to 11 members representing 23 countries with a market size exceeding US$200 billion in AUM. The PAFMA Conference brings together senior industry leaders, regulators and policymakers to discuss the report’s findings and explore practical steps to strengthen capital market infrastructure, expand investable pipelines and improve regional coordination.

ENDS

For more information, please contact:

 Kaara Wainana,

Senior Manager, Advocacy, Campaigns and Partnerships FSD Africa Kaara@fsdafrica.org

About Pan African Fund Managers Association (PAFMA)

 PAFMA is a pioneering trade association uniting fund managers from across the African continent. Established in 2023 by five founding members – Pension Fund Operators Association of Nigeria (PENOP), the Fund Managers Association (FMA) in Kenya, the Botswana Investment Professionals Society (BIPS), the Ghana Securities Industry Association (GSIA) and the Investment Management Association of Uganda (IMAU), PAFMA is dedicated to bridging the climate finance gap through private sector initiatives, with a strategic focus on alternative investments and green finance.

Since its introduction by FSD Africa at the Africa Climate Summit in 2023, PAFMA membership has grown to 11 members representing 23 countries with a market size exceeding US$200 billion in AUM; building a strong network of African fund managers, PAFMA seeks to unlock the potential of Africa’s domestic capital pools, ensuring that African savings finance African development.

About FSD Africa

FSD Africa is a specialist development agency funded through UK International Development operating in more than 30 countries 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 achieve policy and regulatory reform, capacity strengthening, and improving financial infrastructure, to address systemic challenges in Africa’s financial markets. Since 2017, the organisation’s strategy has evolved to prioritise solutions to Africa’s most critical challenges: economic, social, and environmental. The organisation has worked to promote investment into the continent’s green economy, as well as its rates of financial inclusion and gender equality. FSD Africa – previously known as Financial Sector Deepening Africa – was founded in 2012 and is based in Nairobi, Kenya.

For more information, please visit: https://www.fsdafrica.org

FSDAi Invests in Ci-Gaba Fund, Supporting First Close of the USD 75 Million Fund to Unlock Ghanaian Pension Capital for Private Markets

Posted on by Riitho

FSDAi Invests in Ci-Gaba Fund, Supporting First Close of the USD 75 Million Fund to Unlock Ghanaian Pension Capital for Private Markets

Nairobi, 22 January 2026: FSD Africa Investments (FSDAi), a UK-backed specialist financial sector investor, has announced a USD 7.5 million investment in the Ci-Gaba (Progress) Fund, a Ghanaian-domiciled fund of funds designed to mobilise pension capital into private equity and private debt investments across Ghana and West Africa.

The investment supports Ci-Gaba’s first close of its USD 75 million fund and marks a major milestone for Ghana’s first private fund of funds focused on domestic capital mobilisation at scale. The first close attracted strong participation from Ghanaian pension funds, with commitments exceeding its USD 30 million target, demonstrating growing confidence in locally structured private market investment vehicles.

“We’ve reached this first close in record time, with more than two-thirds anchored by local pension funds,” said AnneMarie Chidzero, Chief Investment Officer at FSDAi– “Drawing on FSD Africa’s market-building work in Ghana, we have co-created and underwritten an investment vehicle that aligns with regulatory requirements and governance standards, enabling pension funds to invest confidently in alternative assets.”

Ci-Gaba’s fund will strengthen Ghana’s financial ecosystem by investing in both experienced and emerging fund managers operating across high-growth sectors including financial services, healthcare, agriculture, clean energy, education and technology. By channelling domestic institutional capital into small and growing businesses, Ci-Gaba is expected to support up to 25,000 jobs and contribute to enterprise growth, while helping diversify pension portfolios beyond traditional government securities.

“This marks an important step forward for the PE/VC ecosystem in Ghana and Africa at large. FSDAi’s investment is a strong vote of confidence in Ci-Gaba’s role in unlocking local capital, mobilising pension funds, and building a stronger, more inclusive market,” said Hamdiya Ismaila, CEO of Savannah Impact Advisory. “The investment process has strengthened our structure, aligned us with key stakeholder interests, especially pension funds and positioned us for scale. This is true catalytic capital, and we are excited about the opportunities and impact this partnership will unlock across the region.”

His Excellency, Dr Christian Rogg, British High Commissioner to Ghana said, “The UK is proud of our support to Ci-Gaba, which embodies a commitment to inclusive economic development that will drive private investment across West Africa. This is a clear example of putting the UK’s new Approach to Africa into action – one that moves the UK from donor to investor, built on respect, shared interests and equal partnership.”


For more information/queries on FSD Africa Investments and Ci-Gaba please contact:
FSD Africa Investments
Joyce Waihiga, Manager, Communications, FSDAi
joyce@fsdafrica.org

Ci Gaba
Dinah Hammond-Afful, Investment Manager, Savannah Impact Advisory
dhammondafful@siaghana.com

 

About FSDA Investments
FSD Africa Investments (FSDAi) is a specialist financial sector investor established by FSD Africa and the UK’s Foreign Commonwealth and Development Office (FCDO) to strengthen and deepen Africa’s financial markets. We bridge critical funding gaps by investing patient, risk-bearing capital in novel financial instruments, facilities, and intermediaries. Our strategic investments take on early risk, test new models and catalyse capital from others to gradually transition the financial sector to finance Africa’s economic resilience and growth. To date, FSDAi, backed by FCDO investment, has committed £150 million to 27 investments, and successfully exited two investments in the region, one at 2x money.

For more information, visit https://fsdafrica.org/fsdai-investments/

 

About Ci Gaba
Ci-Gaba (Progress) Fund of Funds, is a Ghana-based blended finance vehicle designed to mobilise domestic institutional capital—particularly pension funds—into SME and early- stage business finance. Ci-Gaba addresses key barriers that have historically limited local investor participation, including risk–return mismatches, currency risk, and governance constraints. The fund invests in a portfolio of experienced and emerging fund managers across priority sectors, while pairing capital with technical assistance to strengthen fund managers, SMEs, and pension trustees. By using catalytic capital to crowd in local investors, Ci-Gaba aims to demonstrate the viability of early-stage and SME finance as an investable asset class and to serve as a replicable model for domestic capital mobilisation in the region. The Fund is managed by Savannah Impact Advisory, a pan-African investment management firm specializing in fund structuring, VC/PE fund management, and impact investing. Ci-Gaba is sponsored by Impact Investing Ghana, the National Advisory Board (NAB) for the Global Steering Group for Impact Investment (GSG).

 

FSD Africa Launches $30 Million Inclusive Insurtech Fund to Close Africa’s Protection Gap

Posted on by Riitho

FSD Africa Announces $30million Venture Fund at BimaLab Africa Insurtech Summit 2025 To Accelerate Insurance Innovation Across the Continent

  • Africa faces major protection gap with around 80% of economic losses from natural disasters going uninsured in 2022, up from 58% in 2021.
  • The BimaLab Accelerator Programme has supported 135 startups across 28 African countries to date
  • New Regulatory Sandbox Eligibility Assessment Toolkit also launched at the Summit

Nairobi, Kenya, 26th November 2025: FSD Africa today announced a new $25 – 30 million Inclusive Insurtech Investment Fund (3iF), at the BimaLab Africa Insurtech Summit held on 26–27 November in Nairobi to open the way for more private investment in the insurance technology (insurtech) sector, accelerate insurance innovation and close the continent’s protection gap.

3iF is a pan-African venture capital fund targeting early-stage insurtech startups that expand insurance access, affordability, and awareness – particularly in climate resilience, health, and financial inclusion among underserved populations. Building on the BimaLab Accelerator Programme, which has supported over 135 startups in 28 countries to date, 3iF aims to bridge the financing gap that prevents promising tech-enabled solutions from scaling and addressing Africa’s substantial insurance protection gap.

Expected to launch in January 2026, the Fund’s blended structure combines junior equity from catalytic investors, anchored by FSD Africa Investments (FSDAi), FSD Africa’s investment arm, with senior equity from commercial and strategic investors led by Zep Re. 3iF will provide investment growth capital to successful graduates of BimaLab as well as other promising ventures, complementing the BimaLab ecosystem.

Speaking ahead of the BimaLab Africa Insurtech Summit, Kelvin Massingham, Director, Adaptation and Resilience, FSD Africa, commented: ““The launch of the 3i Fund opens an exciting new chapter for insurance innovation in Africa. By investing in the next generation of insurtech pioneers, we are unlocking opportunities to expand access, affordability, and resilience for millions across the continent. Our goal is to empower visionary startups to transform how insurance works for everyone—driving inclusive growth, climate resilience, and financial security for Africa’s future.”.

A new Regulatory Sandbox Eligibility Assessment Toolkit was also launched at the BimaLab Insurtech Accelerator Summit, a practical resource designed to help African insurance regulators to quantify the level of impact new insurtech innovations will have on their economies, supporting further investment, testing and development of impactful innovations within regulatory sandboxes.

The toolkit is designed to streamline how regulators evaluate emerging insurtech models, lower barriers for startups, and ultimately expand access to affordable risk protection, particularly for informal workers, rural communities, smallholder farmers, and low-income households.

Commenting on the new toolkit, Godfrey Kiptum, MBS, CEO and Commissioner, Insurance Regulatory Authority (IRA), Kenya, said:

“By strengthening the regulatory environment, we are laying the foundation for a more resilient and inclusive insurance ecosystem for Africa’s next decade. Building regulatory readiness for innovation is key, and BimaLab’s new toolkit will be an invaluable resource not only for us here in Kenya, but for African regulators across the continent.”

 

Driving Inclusive Insurance Across Africa

Africa faces a major protection gap, with insurance penetration below 3% in most countries. This leaves individuals, small businesses, and vulnerable communities exposed to risks they cannot recover from quickly. Around 80% of economic losses from natural disasters went uninsured in 2022, up from 58% in 2021.

Launched in Kenya in July 2020 by the IRA and FSD Africa, the BimaLab Accelerator Programme has become Africa’s leading insurance innovation platform. It aims to harness technology innovations that increase insurance penetration among low-income and underserved communities and is a key component of FSD Africa’s mission to build resilient, inclusive financial markets across the continent of Africa. BimaLab was created to foster innovation and accelerate the development of insurtech product development and distribution, helping startups to scale and develop market-ready solutions, and supporting regulatory engagement and inclusivity throughout the insurance sector.

Elias Omondi, Principal of Innovation for Resilience adds;

“Africa’s protection gap is not just a market failure, it’s a capacity and capital gap. BimaLab Africa Insurtech Accelerator combines focused technical support with catalytic funding, we enable insurtechs to de-risk innovation, scale inclusive products and reach the millions who remain unprotected.”

The 2-day BimaLab Africa Insurtech Summit 2025 held in Nairobi, brought together insurers, regulators, investors, innovators, tech partners, and development leaders driving the transformation of insurance across Africa, under the theme “Insuring Africa’s Future: Innovation, Inclusion and Investment”.

Ted Pantone, CEO and Co-founder of Turaco, a Kenyan micro-insurance company showcasing its innovative insurance products at the Summit, commented: “Our vision when we launched in 2019 was to insure 1 billion people across the continent, and already, with BimaLab’s ongoing support, we have successfully expanded to Uganda, Nigeria and Ghana, and are now insuring over 1 million customers and processing over 20,000 claims. We are proof that this programme really works.”

 

Notes to Editors

For more information, please contact:

Kaara Wainana, Senior Manager Advocacy, Campaigns & Partnerships, FSD Africa

Kaara@fsdafrica.org

 

About the BimaLab Insurtech Accelerator

BimaLab, backed by FSD Africa and the Swiss Re Foundation, is an innovation accelerator focused on strengthening Africa’s insurtech ecosystem. It supports early- to growth-stage startups through mentorship, technical assistance, partnerships, investor readiness, and regulatory engagement. Its core mission is to increase insurance penetration among underserved communities by fostering the development and scaling of inclusive, climate-resilient insurance products while integrating innovation into regulatory frameworks.

Since its launch in 2020, BimaLab has supported over 135 startups in 28 African countries, facilitating the creation of 150+ insurance solutions that now reach over 6 million African customers. The program has collaborated with 15 insurance regulatory authorities supporting the development of 7 insurance regulatory sandboxes.

BimaLab’s annual innovation summits and its alumni pipeline have further helped drive policy reform and attract global investment, positioning it as a leading force in insurance innovation across the continent.

Commentary: Beyond Mobile Money, Mobilising Africa’s $2.4tn in Domestic Capital

Posted on by Kihingu Inc

Patrick Njoroge (“A financial meltdown in Africa will affect everyone”, Opinion, September 4) is correct in highlighting improved financial inclusion and growth in remittances as reasons to be cautiously optimistic about Africa’s long-term future. Business leaders in retail finance must surely be looking forward with great confidence to the economies of scale that will eventually come from serving a tech-savvy population whose median age is 19 and growing almost three times faster than that of the EU.

But he overlooks another reason for optimism — the growth in domestic institutional assets under management, which FSD Africa estimates now stand at well over $2.4tn across Africa, 50 times greater than annual aid flows to the continent. Growth in Kenyan pension assets in 2024 was up 14 per cent in Kenyan shilling terms and 40 per cent higher in dollars, but could have been even faster, according to the regulator, had there been a more supportive policy and regulatory environment.

As Njoroge rightly says, Africa needs stronger domestic financial markets. Rebalancing long-term financing towards local currency would make growth less reliant on international finance, including aid, and more resilient to shocks, not least those resulting from climate change.

As an innovation in African financial markets, mobile money was staggeringly successful. We now need breakthrough innovation in African capital markets to draw private institutional capital away from defaulting to funding government debt so that potentially very large volumes of capital can be put to work funding the projects that will give Africans the jobs and basic services they want.

Mark Napier

Chief Executive Officer, FSD Africa, Nairobi, Kenya

Four African Projects Selected for CAPE’s First Cohort

Posted on by Riitho

FSD Africa, through the Carbon Accelerator Programme for the Environment (CAPE), has announced the first cohort of projects to receive support in advancing community-led ecosystem restoration through nature-based carbon initiatives.

Chosen from over 100 applicants across 28 African nations, the four projects span Kenya, Nigeria, Tanzania and Zambia, and together cover more than one million hectares of land. They include forest regeneration in Nigeria’s Gashaka Gumti National Park, community-led restoration in Tanzania’s Rubeho Mountains, rangeland rehabilitation in Zambia’s Barotseland, and mangrove restoration in southeastern Kenya’s Papariko Mangroves.

Launched in November 2024 by FSD Africa, in partnership with the African Natural Capital Alliance (ANCA) and Finance Earth, CAPE was designed to address the shortage of early-stage funding for nature-based carbon projects in Africa. By offering recoverable grants and tailored transaction advisory support, CAPE helps projects move from concept to investment readiness.

With Africa’s GDP heavily dependent on natural capital, these projects demonstrate how nature can serve as both a climate solution and an economic asset.

As Reshma Shah, Carbon Markets Lead at FSD Africa, noted:

These projects go beyond generating carbon credits—they are blueprints for redefining how the world invests in and values nature.

You can access the full press release here.

FSD Africa and Children’s Investment Fund Foundation (CIFF) launch Sovereign Debt Advisory & DMO Institutional Support Programme

Posted on by Riitho

FSD Africa Launches New Programme to Integrate Sustainable Finance into Africa’s Debt Strategies

FSD Africa, in partnership with the UN Economic Commission for Africa (UNECA) and supported by the Children’s Investment Fund Foundation (CIFF), has launched a new technical assistance and institutional support programme for Debt Management Offices (DMOs) across Africa.

The initiative will help governments embed sustainability into their sovereign debt strategies, unlocking fiscal space for development and climate action, while mobilising both domestic and international investment.

Announced shortly after the Africa Climate Summit in Ethiopia, the programme reflects FSD Africa’s commitment to advancing Africa-led solutions, resilient local-currency finance, and sustainable growth. It also builds on FSD Africa’s 2025–2030 strategy, which aims to catalyse £10 billion of private capital—most of it in local currency—for climate-positive economic transformation.

The facility will provide DMOs and Ministries of Finance with funded, practical support in areas such as sustainability-integrated debt strategy, preparation of new financing instruments, investor engagement, institutional strengthening, and market development.

Mark Napier, CEO of FSD Africa, commented:

Sustainable finance is not a label change—it’s a fiscal strategy. By integrating sustainability into sovereign debt management, countries can lower refinancing risk, extend maturities, and unlock capital for productive, climate-positive national priorities.

You can access the full press release here.

FSD Africa Investments announces first investment in Nature-Based Solutions with US$2.5m commitment to West Africa Blue

Posted on by Allan Musumba

Nairobi, July 2, 2025: FSD Africa Investments (FSDAi), the UK-backed specialist development finance investor, is investing US$2.5 million into West Africa Blue (“Blue”)’s blue carbon project in Sierra Leone’s Sherbro River Estuary (SRE). The investment was announced by the UK Foreign Secretary, the Rt Hon. David Lammy MP, at the Africa Debate in London on Wednesday 2 July 2025. FSDAi’s investment will contribute to the conservation and restoration of approximately 94,000 hectares of mangrove ecosystems across 11 chiefdoms. Working in close collaboration with local communities, the project will demonstrate the potential for blue carbon nature-based solutions to sustainably address climate change, protect biodiversity and build income diversification and economic development opportunities.

Mangrove ecosystems are powerful carbon sinks that combat climate change and build coastal resilience. Despite their promise, blue carbon projects struggle to raise private sector investment due to their complexity, extended timelines to scale and high execution risks. FSDAi’s early-stage investment will help de-risk the SRE project and demonstrate the feasibility of structuring financing facilities linked to carbon revenue, enabling project developers to transition from a dependence on scarce philanthropic and concessional funding towards a model that attracts commercial investment. This aligns with FSDAi’s broader mission to mobilise capital and promote development impact in underserved communities. The project is FSDAi’s first direct investment in a nature- based solution and will complement its existing portfolio that enables capital allocation to Africa’s green economic growth by backing existing asset managers and venture builders.

In addition to significantly reducing greenhouse gas emissions and protecting biodiversity, the project is expected to significantly empower the economic livelihoods of local communities. A core component of the project is the development of an innovative, equitable and transparent benefit sharing mechanism in consultation with communities and the government.

Announcing the investment, FSDAi’s Chief Investment Officer, Anne-Marie Chidzero said,

“This strategic US$2.5 million investment in West Africa Blue’s pioneering blue carbon project in Sierra Leone marks a significant step for FSDAi. As our first direct foray into nature-based solutions, it underscores our commitment to demonstrate the financial proposition to financing nature and creating economic opportunities for communities.”

Elizabeth Littlefield, Blue’s Senior Partner, said, “West Africa Blue is grateful for the support and partnership of FSDAi in this groundbreaking project which will be transformative for communities and the coastal ecosystem that is their home. With FSDAi’s support, we aim to set a high benchmark for quality, transparency and fairness including sharing our Benefit Sharing Agreement and other tools, in order to catalyze the nature-based solution market in Africa.”

About West Africa Blue
West Africa Blue (“Blue”) is a community-centric developer of high integrity, large-scale, blue carbon projects in West and Central Africa. Blue partners with local communities and governments to develop financially sustainable projects that seek to mitigate climate change, boost community resilience, and protect biodiversity. Based in Freetown, Sierra Leone, Blue has worked in the region for over a decade. Its flagship mangrove conservation and restoration project is in the Sherbro River Estuary of Sierra Leone, with a second project in Guinea and a pipeline of other, early-stage projects. Blue offers its projects as ‘Living Labs,’ sharing its lessons learned, tools, models and even its full Benefit Sharing Agreement, open source, to help develop the market for high integrity nature-based projects in Africa and beyond.
For more information, visit https://www.westafricablue.org/.

ARM-Harith and FSD Africa Investments Announce GBP 10m Commitment to Unlock Nigerian Pension Funds and Catalyse Local Capital for Infrastructure

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FSD Africa Investments (FSDAi), the UK-backed specialist development finance investor, is investing GBP 10 million into ARM-Harith’s Climate and Transition Infrastructure Fund (ACT Fund) to unlock local institutional capital for climate infrastructure. ARM-Harith Infrastructure Investment Limited is a leading African private equity firm committed to catalysing economic growth through sustainable infrastructure.

ARM-Harith and FSDAi’s investment introduces an innovative solution to allow Nigerian pension funds to address a longstanding challenge in infrastructure equity finance: the ability to invest while receiving early liquidity. By enabling predictable interim distributions during the early phases of investment, this innovative facility directly addresses a key barrier that has historically deterred domestic institutional capital from entering the asset class.

In addition, 75% of the FSDAi facility will be provided in local currency — a first-of-its-kind approach specifically designed to mitigate the impact of foreign exchange volatility for pension funds. This structure is expected to unlock an additional GBP 31 million in pension fund contributions — nearly five times the participation achieved in ARM-Harith’s first fund.

FSDAi’s investment aligns with its broader mission to deepen African financial markets towards accelerating the financing of Africa’s green economic transformation and will support the Fund’s investments in climate-resilient infrastructure including energy, transport, water, and digital connectivity. In alignment with at least four of the UN’s Sustainable Development Goals, the initiative is projected to create or support approximately 3,000 green jobs.

The British Deputy High Commissioner in Lagos, Mr. Jonny Baxter said,

“The UK government, through its bilateral and investment vehicles is committed to continue to support the country’s financial sector — developing domestic capital markets as a means of financing priority sectors and driving economic development. Local currency capital helps mitigate the impact of foreign exchange volatility, narrows the financing gap, supports diversification into new asset classes and into climate-related projects and social sectors – while providing long-term funds to growing businesses.”

Announcing FSDAi’s investment, FSDAi’s Chief Investment Officer, Anne-Marie Chidzero said:

“We are thrilled to collaborate with ARM-Harith to showcase how risk-bearing capital from a market-building investor like FSDAi can be strategically structured to unlock domestic institutional capital. This approach strengthens Africa’s financial markets and facilitates capital allocation towards sustainable, green economic growth across the continent.”

ARM-Harith CEO Rachel Moré-Oshodi emphasized the significance of this investment:

“For too long, domestic pension funds have remained on the sidelines of infrastructure equity due to liquidity constraints and heightened perception of risk. We are proud to have collaborated with FSDAi to design a pioneering solution that reduces risk for pension funds while delivering both early liquidity and long-term capital growth. This is a global first—a groundbreaking private sector-led solution that could fundamentally change how infrastructure equity is financed—not just in Nigeria, but across Africa.”

Bank of Industry and FSD Africa Collaborate to Drive Green Finance Initiatives in Nigeria

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Lagos, Nigeria – The Bank of Industry (BOI) is pleased to announce a significant milestone in its commitment to promoting sustainable finance in Nigeria with the formal signing of a Memorandum of Understanding (MOU) with FSD Africa, a leading agency dedicated to strengthening climate financing in financial markets across Africa.

Under this partnership, FSD Africa will deepen BOI’s sustainability finance proposition, providing technical assistance, strategic guidance, and capacity development initiatives. This will involve supporting the bank in strengthening its sustainability strategy, delivering decarbonisation pathways and advancing its adaptation finance initiatives. These resources will better position BOI to offer tailored lending solutions and business support for Nigerian climate-focused projects, further solidifying its position as a key driver of green finance in the country. 

The MOU establishes a robust framework for collaboration, enabling BOI to expand its climate financing portfolio and support enterprises committed to sustainability. This partnership will deepen BOI’s impact in fostering climate-resilient economic growth across Nigeria.

Speaking at the signing ceremony held at BOI’s headquarters in Lagos, BOI Managing Director/CEO Dr. Olasupo Olusi said:

“This partnership with FSD Africa is a critical step in our efforts to promote climate resilience and sustainability as one of our central pillars of our operations. Together, we will pioneer innovative solutions that address the challenges of climate financing while unlocking opportunities for businesses and communities across Nigeria.”

Representing FSD Africa at the event, Dr. Evans Osano, Chief Financial Markets Officer, said:” Our partnership with BOI in advancing sustainable finance is pivotal at this critical time. Nigeria’s annual climate finance gap is estimated at USD27.2 billion. Bridging this gap requires concerted effort including catalysing domestic capital in addition to international investments to drive sustainable investments.  We are excited about the bank’s commitment to promoting climate transition and driving Nigeria’s climate commitments towards net zero, and we are happy to be part of this journey.”

The MOU aligns with BOI’s recently launched three-year strategic plan, which prioritizes climate and green finance as key focus areas.

“With the support of strategic partners like FSD Africa, we are confident that BOI will continue to play a leading role in fostering sustainable development and driving positive change across Nigeria’s economic landscape.”Dr. Olusi added.

This partnership represents the beginning of a transformative journey, creating a framework for innovative and impactful collaboration. BOI and FSD Africa reaffirm their shared commitment to advancing the climate finance agenda in Africa and addressing the pressing challenges of climate change.

Ethiopian Securities Exchange Launch Marks a New Dawn for Ethiopia

Posted on by Kihingu Inc

The Ethiopian Securities Exchange (ESX) was officially launched today in a colorful event officiated by Prime Minister Dr. Abiy Ahmed. The exchange, established by the country’s sovereign wealth fund, Ethiopia Investment Holdings (EIH) in partnership with the Ministry of Finance and FSD Africa, marks a historic milestone in Ethiopia’s economic development.

Licensed by the Ethiopian Capital Market Authority in December 2024 to operate as a Securities Exchange and Over the Counter (OTC) market, ESX is set to revolutionise the nation’s capital markets. By providing equitable access to capital and enhancing liquidity, it aims to support private sector growth in Ethiopia, the second most populous country in Africa and one of the fastest growing economies globally, with projected GDP growth of 6.5 in 2025.

For decades Ethiopia’s financial sector has lacked a strong mechanism for equitable access to capital and liquidity for the private sector. In particular, the lack of an interbank trading platform has meant banks could not effectively lend to one another. This resulted in high interest rates to borrowers and significant inefficiencies in bank liquidity management which has in turn constrained businesses, particularly small and medium-sized enterprises (SMEs).

The new exchange is already addressing this challenge. An interbank trading platform, which is part of the exchange, is optimising liquidity and improving credit flow in the banking system. Since its pilot in late October 2024, the platform has facilitated trades exceeding ETB 135 billion (USD 1.1 billion), demonstrating robust uptake by the banking sector. By enhancing price transparency and reducing transaction costs, the platform is already improving credit accessibility for businesses, enabling them to grow, innovate, and drive economic activity.

ESX’s state-of-the-art multi-asset Electronic Trading Platform, which is integrated with a modern Central Securities Depository for post-trade settlement and clearing, will also support more efficient issuance and trading of financial instruments such as Equities, Treasury Bills and Bonds, Corporate Bonds, Commercial Papers, Repos, and Derivatives. This is expected to attract both domestic and international investors, further strengthening Ethiopia’s financial markets.

ESX CEO Tilahun Esmael Kassahun was optimistic that the new bourse would inject dynamism in the economy and deepen especially the debt market to the benefit of all actors in the ecosystem.

“We see the new securities exchange as a multi-faceted financial infrastructure, providing multiple markets and variety of products, catering for different types of issuers and investors. The Fixed income market will provide a platform to list and trade debt instruments including treasury bills and bonds, corporate bonds and Shariah compliant securities such as Sukuk Bonds.”

On his part, FSD Africa CEO Mark Napier underscored the role of modern and deep capital markets in accelerating the already impressive economic growth momentum of Ethiopia.

“The launch of the ESX is a true game-changer for the country. As an organization running development finance programmes in well over thirty African countries, we know only too well the impact well-functioning and modern capital markets can have in catalyzing economic growth. We are proud to have played a role in the development of this exchange, that will undoubtedly spur equity, fixed income and other innovative financial instruments,” noted Mark.

The launch of ESX follows significant economic reforms in Ethiopia over the past year, including floating the national currency, the Birr, opening the banking sector to foreign competition, and advancing capital market development. The exchange is poised to become a vital platform for raising capital, trading securities, and driving economic transformation.