Category: Press release

FSD Africa partnership aims to safeguard and leverage investment for small and medium-sized African businesses through the Africa Private Equity and Private Debt Programme

Posted on by Kihingu Inc

The four co-operation agreements signed between FSD Africa and the African Private Equity and Venture Capital Association (AVCA) and East Africa Private Equity and Venture Capital Association (EAVCA) and Southern Africa Venture Capital and Private Equity Association (SAVCA) and the Private Equity and Venture Capital Association Nigeria (PEVCA) will help to ensure local expertise and tailored delivery for regional and country mandates.

NAIROBI, 24 February, 2021: FSD Africa today announces the signing of co-operation agreements with AVCA, EAVCA, SAVCA and PEVCA to coincide with the launch of the Africa Private Equity and Private Debt Programme. The programme is a new initiative to support the development of private capital markets in Africa as a complement to public capital markets. It will work to improve the long-term financing options available for businesses across key sectors in Africa’s economy, including healthcare, climate and agriculture.

 

Access to long-term finance has continued to be a challenge for small and medium-sized businesses across the continent. The economic impact of COVID-19 has only exacerbated the strain on Africa’s formal public markets aiming to provide long-term finance options to businesses desperately in need of capital. This alongside increased risk averseness by lending institutions has left few options for SMEs to access long term financing, in many cases resulting in business closures and job losses.

 

Through the Africa Private Equity and Private Debt Programme FSD Africa aims to leverage various tools including grants, technical assistance, advocacy and investment capital to support the growth of private capital markets. The partnership aims to support growth in a way that is uniquely African in character, tailored to the local context and delivering long term financing options for SMEs.

“Supporting the development of private equity and private debt markets in Africa will provide a boost to small and medium-sized businesses and local economies. We believe this will be greatly welcomed in the short term, ensuring that more jobs are saved, but it will also provide long-term benefits and improve access to capital.  Globally, there has been a secular shift towards private capital markets and it is appropriate that, as part of our response to COVID-19, we pay enough attention to the development of private markets, allowing for more local capital to be channelled into essential sectors including health, agriculture and climate.”
Mark Napier, CEO

FSD Africa announces development of landmark Islamic capital market framework for the West African Monetary Union

Posted on by TIMOTHYRADIER

FSD Africa is providing technical assistance for the development and promotion of the Islamic capital market framework for the region. The project is spearheaded by Conseil Régional de l’Epargne Publique et des Marchés (CREPMF).

Wednesday, January 20, 2021: FSD Africa, in partnership with Conseil Régional de l’Epargne Publique et des Marchés, is developing a regulatory framework that will help to establish an Islamic capital market in the WAMU region comprising Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo.

The proposed new Islamic capital markets would work to spur growth in the region and increase financing of the Union’s economies.

FSD Africa’s support comes as part of its ongoing programme to strengthen Africa’s capital markets. The programme is centred on the development of capital markets master plans, conducting institutional capacity assessments, and creating capacity for sustainable finance such as green bomarkets to adapt to their operating climate.

“We must ensure that financial systems are as relevant as possible to their local operating context. We look forward to working with local stakeholders to understand the needs of the capital market ecosystem in the region as we implement this ambitious programme – a first for the region. Islamic finance will not only foster inclusive finance amongst a vast majority of the population in the West African Monetary Union but will also unlock significant growth-inducing capital from market participants keen on ethical investing.”

Evans Osano, Director Capital Markets

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Nigeria’s Securities and Exchange Commission commences plan to strengthen capital markets in partnership with FSD Africa

Posted on by Kihingu Inc

SEC Nigeria, with the support of FSD Africa, begins a review of Nigeria’s 10-year Capital Markets Master Plan to better align it with the current economic climate.

ABUJA, Nigeria, December 17, 2020: The Securities and Exchange Commission, Nigeria (SEC Nigeria) and FSD Africa have today announced the start of a joint review of Nigeria’s 10-year Capital Markets Master Plan (CMMP) to support the country’s economic resilience amid new economic challenges including lower oil prices and the COVID-19 pandemic.

The review of the CMMP will see SEC Nigeria work with FSD Africa’s Regulator Support Programme to develop a revised 10-year CMMP that will strengthen Nigeria’s capital markets’ and their capacity for capital mobilization. The CMMP provides a vision for Nigeria’s capital market, as well as a roadmap with objectives to meet it.

The process will involve an assessment of progress made since the plan’s implementation to date and engaging with stakeholders for input. Thisthe introduction of more stringent tools to measure the plans progress against objectives, and the inclusion of new challenges, opportunities and risks related to the current environment into the plan.

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FSD Africa Investments commits $4.5 million to a new fund supporting MSMEs through pandemic recovery

Posted on by TIMOTHYRADIER

The investment will strengthen debt facilities by Lendable Inc. while offering increased security to micro, small and medium enterprises recovering from the pandemic

NAIROBI, December 15, 2020 – FSD Africa Investments (FSDAi), the investment arm of FSD Africa, has today announced a $4.5million commitment to Funds set up by Lendable Inc. (Lendable). This will boost the capacity of alternative financial service providers in sub-Saharan Africa to provide credit to micro, small and medium enterprises (MSMEs) recovering from the effects of the pandemic.

Lendable is a fintech startup which provides structured finance to alterative lenders in frontier and emerging markets. By providing funds to support the lending capacity of alterative financial service providers, these providers will, in turn, provide much needed capital to MSMEs. This is at a time when MSMEs need help in fuelling their recovery from the effects of the pandemic – and when credit from other sources may be difficult tise.

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Innovative partnership will improve efficiency of Nigeria’s capital markets

Posted on by TIMOTHYRADIER

FSD Africa and SEC Nigeria sign agreement to support digital transformation at the government agency through the modernization and transformation of its information and communication technology (ICT) systems.

Abuja, Nigeria, October 27, 2020: Financial Sector Deepening (FSD) Africa and the Securities and Exchange Commission, Nigeria (SEC Nigeria) have today signed a co-operation agreement that will see FSD Africa provide technical assistance to support SEC Nigeria’s digital transformation and its capacity to regulate and develop Nigeria’s capital markets.

The transformation will see SEC Nigeria’s ICT infrastructure updated to international best practice, helping to improve its ability to serve the Nigerian capital markets. Given the current working climate, this will also ease the transition to remote working as necessitated by COVID-19.

The partnership with FSD Africa will enable SEC Nigeria to serve capital market participants more efficiently through the digitization of mfacing regulatory services like e-filings and e-prospectuses. It will also improve the operational efficiency, information security and transparency of the regulator, while allowing it to develop data-driven interventions to improve Nigeria’s capital markets in line with current and future market needs

Landmark fund launched to help protect textile industry jobs in Ethiopia as COVID-19 slows manufacturing demand

Posted on by TIMOTHYRADIER

The fund is an international collaboration between the UK, Germany and Ethiopia that will protect some of Ethiopia’s most vulnerable workers

Addis Ababa, 29 October 2020: A landmark fund set up between the UK and Germany in collaboration with the Government of Ethiopia could save thousands of jobs in Ethiopia’s textile and garments industry, while helping to support the country’s economic recovery from COVID-19. With $6.5 million invested at launch, the partnership aims to help safeguard a critical industry and protect the livelihoods of those working within it.

Through the fund, textile factories in Ethiopia’s industrial parks can apply for wage subsidies – similar to the furlough schemes operating in many countries including the UK and Germany – and incentives to reward businesses that are able to adapt in response to COVID-19. The funding announced today will kickstart the facility and the partnership may further expand its reach through additional support in the com

Our support forms part of the work FSD Africa is doing in financial markets across Africa to build resilience and help drive the economic recovery from COVID-19. This fund brings together UK and German funding and technical expertise to deliver real benefits for vulnerable households and ensure that Ethiopia’s patient efforts to build manufacturing capacity over many years are preserved

Mark Napier, CEO, FSD Africa

Further details about the facility can be found on the website here.

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Launch of the financial inclusion for refugees (FI4R) project in Uganda

Posted on by Kihingu Inc

Research set to inform the delivery of financial services for refugees

Kampala, March 17, 2020 – Working with local service providers (FSPs) in Uganda, we have collaborated with FSD Uganda and BFA Global to launch a landmark study with the aim of understanding the different sources of income for refugees, the uses of their finances and the financial products and services they use and supporting the development of financial products and services offered by Equity Bank Uganda Limited (EBUL), Vision Fund Uganda (VFU) and Rural Finance Initiative (RUFI) and evaluating the impact of those products and services on refugee livelihoods.,

FSD Africa Investments announces USD$3.2 million in new investments to strengthen African financial markets

Posted on by TIMOTHYRADIER

The investments will enhance the domestic banking sector, and make it cheaper and easier for African consumers to transact globally 

London, 20 January 2020 – At the UK-Africa Investment Summit, FSD Africa Investments has today announced USD$3.2 million in investments into MFS Africa and Frontclear, two leading companies transforming Africa’s financial sector. 

West Africa Monetary Union joins initiative focused on strengthening Africa capital markets

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The programme, implemented by Financial Sector Deepening Africa, will enhance the West Africa Monetary Union’s capital market

Abidjan, 28 OCTOBER 2019: The Conseil Regional de l’Epargne Publique et des Marches Financiers (CREPMF) of the West Africa Monetary Union (WAMU) has today joined Financial Sector Deepening (FSD) Africa’s flagship Africa Regulator Support Programme. The continent-wide initiative aims to unlock and build investor confidence in national capital markets by aligning regulations and compliance to international stand

Launch of the private equity investment guide

Posted on by Kihingu Inc

The PE investing guide is a tool to enable pension funds across East Africa assess and invest in private equity assets.

Nairobi, Tuesday 15th October 2019: The East African Venture Capital Association (EAVCA) in partnership with Financial Sector Deepening Africa (FSD Africa) and International Finance Corporation (IFC) have launched an investment guide to enable regional pension schemes to invest in Private Equity (PE) Funds.

Named Private Equity Investment Guide, the objective of the tool is to deepen the understanding of private equity structures among pension fund managers and their trustees to unlock more investment into the asset class. The guide mainly covers three key areas – understanding the asset class and where it sits alongside other asset classes, why and how to invest in PE’s and an overview of the benefits and risks of investing in private equity.

The development of the guide was informed by a market study report that sought tvestigate the low uptake of investment by pension schemes. In Kenya for instance PE allocations by pension schemes total only 0.08% of total industry assets under management. From a regulatory perspective there are provisions allowing Pensions to invest in PE funds in East Africa (Kenya, Uganda Rwanda, Tanzania and Ethiopia).

Across developed markets the pension industry is the backbone of investments, supporting asset classes such as private equity with the patient capital to deploy in growing businesses. Speaking at the launch event, EAVCA’s Executive Director, Eva Warigia noted “We are excited to be part of the evolution in Africa’s private equity industry. EAVCA has decided to be proactive in supporting our local capital markets with the capacity building and investor education that empowers our local institutional investors.”

“Private equity is a catalyst that enables pension funds to access growth opportunities in the unlisted African companies” Added Ms. Warigia.

noted that private equity investments facilitate active participation in the growth sectors of the real economy by pension funds, generating returns to investors while contributing to the creation of jobs and improving access to basic services.

“However, there is need to up skill regulators, fund managers and pension trustees to foster a greater understanding of the benefits, risks and process of investing in PE funds.” Dr. Osano added.

“Pension Schemes are guided by their Investment Policy Statements (IPS), which provides guidance for Strategic Asset Allocation for Pension Schemes. To boost Trustees, ability to make informed decisions about investing in Private Equity, the investing guide provides more information on policies and procedures to assist with risk management of the asset class,” said IFC SME Ventures Senior Operations Officer, Samuel Akyianu added.

Alongside the PE Investment Guide, EAVCA also released a market rele ‘Private Equity Investing for Pension Funds in East Africa’ which notes some of the macro trends that have influenced uptake of PE assets in the region. The report cited the knowledge gap on both pension fund and regulatory side and the absence of regulatory oversight of the PE Fund Managers by local regulators as some of the key impediments for Pensions seeking to invest in PE Funds. The study surveyed 18 Pension Schemes from Kenya, Rwanda, Tanzania and Uganda alongside 15 PE General Partners from Ethiopia, Kenya and the United Kingdom as well as 3 Pension regulators in Kenya, Uganda and Tanzania.

Of the five Eastern African countries Rwanda has the highest provision for Pension Fund investment in PE funds at 20% followed by Uganda at 15% and Kenya at 10% while Tanzania and Ethiopia have no defined limits. Uganda has the highest rate of Pension Fund investment in PE funds at 2.2% followed by Kenya at 0.07% while no data is available for the other countries.

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