Category: Press release

Tanga UWASA issues East Africa’s first ever Water Green Bond

Posted on by TIMOTHYRADIER

Embargoes until 22nd February 2024, afternoon.

 Tanga

Today, the first ever Sub-national Water Infrastructure Green Bond in East Africa, worth TZS 53.12 billion has been issued by Tanga Urban Water Supply and Sanitation Authority (Tanga UWASA), an autonomous water utility. This landmark transaction would fund the expansion and improvement of sustainable water supply infrastructure and environmental conservation within Tanga city and nearby townships. The 10-yrs project revenue bond to be listed at Dar es Salaam Stock Exchange (DSE), offers an attractive interest rate of 13.5% per annum to be paid semiannually.

The government of Tanzania adopted the Alternative Project Financing (APF) strategy in 2021 because of the need to broaden its domestic revenue base to finance various national development initiatives including water, energy, heath care, agriculture, and other productive infrastructure projects. Tanga bond is the first significant transaction to demonstrate that the existing regulations and frameworks can be used by municipalities, cities, and sub-national entities to raise significant capital from domestic capital markets in local currency to finance development. Innovative financing such as this one can help to bridge the gap between what is available and what the government, need to reach national development plans and sustainable development goals”.

In his speech while gracing the launching ceremony, the guest of honor H.E. Philip Mpango, Vice president of United Republic of Tanzania said that financing of strategic revenue generating projects through a revenue bond such as the Tanga Bond will reduce pressure on government budget and provide an opportunity to focus on priority social initiatives that can’t be financed via commercial windows. On that front, he said , “Am directing the Treasury Registrar’s Office which supervises public institutions and the Minister of State, President Office, Regional Administration and Local Government (PORALG), to explore eligible public institutions, Local Governments, cities and municipalities to prepare to tap long term finance  via revenue and municipal bond issuance.”

Speaking during the event, the Deputy Minister of Finance Hon. Hamad Chande highlighted that, the Government of Tanzania is committed to ensure that its Alternative Project Financing strategy is used by more public entities to finance local development instead of relying only on government grants, a leaf to be borrowed from the Private Sector and Corporates who operates in the same market.

On his side, Hon. Jumaa Aweso, the Minister for Water insisted that the direction of the 6th administration and the CCM Manifesto is to ensure access to water supply by 95% in urban areas and 85% in rural areas by December 2025. To date, water accessibility has reached 88% and 77% in urban and rural areas respectively. “In order to achieve these targets, it is crucial to deploy various innovative financing mechanisms similar to what Tanga UWASA has done. This project is expected to improve and increase water supply from 96% to 100% in Tanga City and reliability of water for 24 hours, by June 2025. Similarly, increase water supply network from 70% to more than 95% in the townships of Muheza and Pangani respectively by June 2025. Likewise, increase capacity to supply adequate water to Mkinga District through the ongoing project which is under construction”. He added.

On his key remarks, the Head of United Nations Capital Development Fund (UNCDF) in Tanzania Mr. Peter Malika congratulated the government for achieving this historic milestone. He said “UNCDF played an important role of partnering with the government and its key national institutions to influence policies and improve the enabling environment related to domestic capital markets development. Tanga Bond is a demonstration that capital markets are a viable option for financing national development needs without increasing the national debt limits”. UNCDF will continue to provide technical assistance and financial assistance to ensure more sub-national and municipal bond issuances take place to meet the growing demand to fund public services driven by growing populations, urbanization and climate change.

Mr. Nicodemus Mkama, Chief Executive of the Tanzania Capital Market and Securities Authority (CMSA) highlighted that “CMSA has been at the fore in steering development of innovative sustainable capital market products that have facilitated successful issuance of the first gender and multi-currency green bonds in Sub-Saharan Africa; as well as shariah compliant sukuk bonds. These results have positioned Tanzania on the map of global capital markets that offer innovative and sustainable products attracting both domestic and international investors. The Tanga UWASA bond, which is an innovative, sustainable blended capital market product with elements of subnational, water infrastructure, green, revenue bond is a milestone pathfinder transaction, expected to showcase other subnational institutions and municipalities in financing revenue generating projects, through capital markets.”

Other stakeholders involved in preparations of the Tanga water green bond includes NBC Bank (lead transaction advisor), FSD Africa (supported green framework), FIMCO and Global Sovereign Advisory (financial & investment advisory), ALN Tanzania (legal advisor), Innovex (reporting accountant), Vertex International Securities (stockbroker) and ISS Corporate Solutions (second-party opinion provider).

General public, investors, Institutions and individuals are welcome to visit any NBC Bank branches or any other authorized brokers to invest in the Tanga water green bond, within the offer period of 6 weeks.

END

SWISS RE Foundation extends funding support to BimaLab Africa Insurtech accelerator I

Posted on by 5iveafrica

The acclaimed and innovative Bimalab Africa Insurtech accelerator program by FSD Africa is now set to expand to cover a total of fifteen countries across the African continent from the initial ten countries covered in the 2023 program, following a US$ 600,000 support by Swiss Re Foundation.

Launched in Kenya by FSD Africa in 2020 and supported by the Swiss Re Foundation since 2023, the BimaLab Africa Insurtech Accelerator Program offers hands-on venture-building support to high-impact insurtech start-ups that improve the resilience of underserved and climate-vulnerable communities.

In this extension of the Foundation’s support through 2025, BimaLab will expand its footprint to accelerate 55 insurtechs in a total of 15 African countries. It will build strong innovation ecosystem by activating investors, capacity-building networks, and corporate institutions to unlock capital, attract talent and share knowledge about insurance solutions tailored to those communities’ needs.

BimaLab Africa addresses problems faced by vulnerable communities and businesses, it gives priority to enterprises that address challenges on climate change, health and gender as well as obstacles faced by micro, small and medium enterprises. Africa’s protection gap, or uninsured losses, for natural catastrophes was around 80% of the total economic losses they caused in 2022, up from 58% one year earlier. These figures highlight the severity and volatility of the region’s natural disasters as well as its lack of financial protection against them. BimaLab Africa will create an insurtech innovation ecosystem that supports the growth of insurtechs; reach underserved markets, communities and households.

“Insurance provides a crucial safety net when people experience threats like natural disasters, ill health or economic disruption.  We are proud to scale our partnership with BimaLab Africa, an initiative we strongly believe in. Bimalab Africa supports the growth of insurtechs, their reach to underserved markets, communities and households. It creates an insurtech innovation ecosystem in Africa. ” said Stefan Huber Fux, Director of the Swiss Re Foundation.

Bimalab Africa program is a unique programme bringing together insurance innovators, technology partners, insurance firms, investors, and regulators to work in concert in unlocking industry bottlenecks in modernising insurance services. Previously Bimalab Africa has had chapters supporting insurtechs in Egypt, Ethiopia, Ghana, Kenya, Morocco, Nigeria, Rwanda, South Africa, Uganda, and Zimbabwe. Among the new countries where the programme seeks to spread wings to are Tanzania, Tunisia, Senegal, Zambia, Malawi, and Somalia.

FSD Africa Principal Innovation and Resilience and Bimalab Africa Programme Lead Elias Omondi says the impact of the programme has been phenomenal over the last four years in expanding the reach of the program and playing a catalytic role in innovation by developing products for vulnerable customers and attracting investors to insurtech startups.

“BimaLab Africa enables startups enjoy access to a structured learning environment, mentorship, funding connections and a network of like-minded entrepreneurs, financiers, tech companies and regulators that can help them grow their businesses.  We have supported 63 startups since 2020 and facilitated development of 3 regulatory sandboxes. Furthermore, investors have supported ten ventures providing over US$10 million in funding and over 40 products developed have reached more than 3 million new customers reached” said Elias Omondi, Principal from FSD Africa.

Insurance penetration in Africa has been lagging compared to other parts of the globe at only 3% compared to the world average of 7%. Innovation and technology are expected to play a key role in addressing the challenge.

FSD Africa and African Guarantee Fund partner to boost Green SME Financing

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Nairobi, Kenya, 09 February 2024: FSD Africa, a pioneering development agency committed to reshaping Africa’s long-term financial landscape, and the African Guarantee Fund (AGF), a leader in promoting financing of Small and Medium-sized Enterprises (SMEs) across Africa, have today signed a strategic Cooperation Agreement aimed at propelling the growth of Green SMEs by providing critical financial support, technical assistance, and capacity building.

The Cooperation Agreement outlines a detailed framework collaboration between the organizations in boosting sustainable development in Africa. The main aspects of this partnership involve assisting in the development of financial products for institutions, offering partial credit guarantees for bonds and funds raised on behalf of SMEs, and conducting capacity-building events.

FSD Africa and African Guarantee Fund partner to boost Green SME Financing

Furthermore, by providing financial support and fostering business growth, Green SMEs ae expected to play a pivotal role in reducing CO2 emissions. This active contribution aligns with the overarching goal of preserving the environment and facilitates access to finance for business growth and empowering SMEs to generate and sustain employment opportunities, especially for youth and women.

Speaking during the agreement signing, Mark Napier, Chief Executive Officer of FSD Africa said: “This partnership represents an important milestone in our efforts to foster sustainable economic development in Africa. By leveraging the strengths of FSD Africa and the African Guarantee Fund, we will actively create a robust ecosystem that empowers Green SMEs. This collaborative effort aims at facilitating access to affordable long-term funds, thereby accelerating the transition towards a greener and more resilient economy.”

Jules Ngankam, AGF Group Chief Executive Officer said: “Fostering a green economic transformation in Africa is one of our key priorities. Through this partnership, AGF will provide financial institutions with bank fundraising guarantees to enable them access affordable funds aimed at facilitating loans to SMEs investing in low carbon and climate resilient businesses. Additionally, AGF will extend partial credit guarantees to lenders in a bid to enhance credit accessibility for Green SMEs, empowering them to flourish and make meaningful contributions to environmental conservation.

The two organisations will also provide technical assistance on green financing initiatives, which is critical in building the capacity of key stakeholders such as Governments, Financial Institutions, and Green SMEs.

For more information, please contact:

FSD Africa
Nelson Karanja
Director, Communications, and Engagement
Email: nelson@fsdafrica.org

African Guarantee Fund
Diana Aluga
Group Communications & Public Relations Officer
Email: diana.aluga@agf.africa

About African Guarantee Fund

African Guarantee Fund (AGF) is a specialized guarantee provider whose mission is to facilitate economic development and poverty reduction in Africa. To achieve this, AGF increases access to finance for Small and Medium-sized Enterprises (SMEs) across key economic sectors through an array of guarantee products and capacity development assistance. Since inception, AGF has unlocked more than USD 3.5 billion in SME financing, through partnerships with 200 partner financial institutions across 40 African countries.

AGF is backed by the following shareholders and sponsors: The Government of Denmark through the Danish International Development Agency (DANIDA), the Government of Spain through the Spanish Agency for International Cooperation (AECID), the African Development Bank (AfDB), French Development Agency (AFD), Nordic Development Fund (NDF), Investment Fund for Developing Countries (IFU), German Development Bank (KfW), French Agency for Private Sector (PROPARCO), West African Development Bank (BOAD), Global Affairs Canada (GAC), USAID’s West Africa Trade & Investment Hub (WATIH), TechnoServe and Mastercard Foundation.

African Guarantee Fund is rated AA- by Fitch Ratings.

For more information, please visit: www.agf.africa

Access to capital and long-term finance boosted by EABX PLC’s Over the Counter (OTC) Exchange regulatory approval

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The receipt of this approval is in line with the ongoing national reforms to enhance debt market infrastructure that will promote trading transparency and increase liquidity.

 Nairobi 1st February 2024.  EABX Public Limited Company (EABX) has received regulatory approval from the Capital Markets Authority to establish and operate an over-the-counter (“OTC”) securities exchange and additionally function as an autonomous self-regulatory organisation (SRO) in the country.

The approval enables EABX to operationalise the Exchange by rolling out its electronic trading platform to its members in Kenya, with a plan to expand operations into the wider East African region in the near future. The licensing of EABX is in line with ongoing reforms in the framework of Public Debt Management, intended to improve national savings, deepen, and improve the domestic debt market infrastructure, spearheaded by the country’s National Treasury.

EABX PLC is primarily sponsored by the Kenya Bankers Association (“KBA”), which is the Exchange’s anchor shareholder, and FSD Africa which has offered its technical support. KBA currently has a membership of forty-seven financial institutions and continues to reinforce a reputable and professional financial services sector in a bid to best support Kenyans, who entrust their ambitions and hard-earned resources with its member institutions. FSD Africa aims to address systemic challenges within Africa’s financial markets, with the aim of sparking large-scale and long-term change.

It is expected that establishment of an OTC Securities Exchange will enhance market infrastructure and broaden the domestic and international investor base as market confidence grows. This will deepen the market and encourage development through innovative products and position Kenya as regional leader in financial market development supporting its Vision 2030 ambitions.

EABX will provide an OTC platform for the trading of fixed income products such as repurchase agreements (REPOs), treasury securities, commercial paper and corporate listings and alternative assets including non-interest financial products. EABX will also play a pivotal role as a Self-Regulatory Organisation in expanding the architecture of the financial services system, modernising supervision and market conduct, improving financial capability, enhancing sovereign debt management and fostering EAC financial integration.

Welcoming the announcement, Mr. Terrence Adembesa, the CEO of EABX said:

“EABX is grateful for the support it has received from the CMA, the EABX interim board of directors chaired by Mr. Kihara Maina, the KBA, FSD Africa and all other stakeholders who have worked tirelessly over the years for the achievement of this significant milestone. As a company, EABX acknowledges that the hard work begins now and looks forward to the opportunity to contribute to the development and expansion of the region’s capital markets.”

Dr. Habil Olaka, CEO Kenya Bankers Association:

“Kenya Bankers Association congratulates the East Africa Bond Exchange Plc (EABX) on the license award to commence OTC Bond trading.  This marks a significant chapter in Kenya’s financial market and presents a new phase of growth and opportunity, expected to transform and deepen the market.  The banking sector looks forward to sustaining its contribution to market development, fostering economic growth and creating lasting value for all stakeholders. This milestone reaffirms the industry’s unwavering commitment to excellence, innovation, and adherence to the highest industry standards.”

 Speaking on the milestone, FSD Africa’s Director, Capital Markets, Dr. Evans Osano said:

“This is the most significant capital market infrastructure development in Kenya and the wider East African region in decades. It promises to uplift the regional fixed income markets to world class status and will be instrumental in mobilizing at scale long-term local currency financing for the East African economies. FSD Africa and co-sponsor the Kenya Bankers’ Association celebrate this critical milestone of EABX’s licencing. We thank CMA Kenya for its foresight and market development instincts.”

 

About The EABX

EABX Public Limited Company (EABX) is a Kenyan company whose purpose is to establish and operate an over- the-counter securities exchange. As a market organizer, EABX will serve the dual roles of a self-regulatory organization, providing frontline regulation of market conduct, and provision of a trading and trade reporting platform that will enhance transparency, safety, liquidity, and the deepening of the domestic debt market. EABX is sponsored by the Kenya Bankers Association (KBA) with technical support of FSD Africa.

EABX is currently conducting user acceptance tests on its electronic trading platform and is additionally enlisting members into the Exchange from across the market players.

For further information please contact:

Corporate Affairs

EABX PLC

E-mail: info@eabxgroup.com

www.eabxgroup.com

Listing of the Inaugural Sustainable Bond on the BSE

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For Immediate Release, 15th December 2023: Botswana Stock Exchange (BSE) is pleased to inform its valued stakeholders that today, the first-ever Sustainable Bond has been listed on the BSE. The bond, amounting to P47.4 Million, was listed by Absa Bank Botswana Limited (Absa) under its P2.0 Billion Medium Term Note Programme.

The BSE CEO, Mr. Thapelo Tsheole said, “This is historic for the market, and I would like to congratulate Absa and their stakeholders for this magnificent achievement. Largely, it’s as a result of the various strategic undertakings to cultivate and foster a conducive market for Sustainable Bonds. Pursuant to introducing the listing requirements for Sustainable Bonds, extensively building capacity around these instruments and introducing the fee incentives, we have introduced a new Sustainable Bonds Segment where Green, Social, Sustainability and Sustainability-Linked Bonds can be listed to raise funds for sustainable development”.

Mr. Tsheole elaborated that the impact of the fee incentives for listing Sustainable Bonds, which is a 25% discount on initial listing fees and annual sustaining fees relative to conventional bonds, were critical in lifting Botswana’s ranking in the Absa Africa Financial Markets Index (AFMI) 2023 from number 8 in 2022 to number 6 in 2023.

“In the next year, we are looking to roll out ESG Guidelines, Guidelines for Listing Sustainable Bonds, and explore introducing ESG Ratings for issuers. For today’s feat, we could not have achieved this much alone. Let me thank FSD Africa for their technical assistance under the SADC Green Bond Programme, recognize the investors who subscribed to this issuance and once again applaud Absa for taking the lead”, Mr Tsheole added.

For more information, contact the following;

Botswana Stock Exchange
Market Development Department
marketdev@bse.co.bw
Tel: (+267) 367440

FSD Ethiopia CEO to Step Down

Posted on by TIMOTHYRADIER

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.

Posted on by TIMOTHYRADIER

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.

FSD Africa Investments (FSDAi) commits US$3 million to Carbon Value Exchange Ltd (Cavex), a pioneering digital platform linking buyers to small-scale carbon projects across Africa

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The latest investment represents a consolidation of FSD Africa’s early stage support to the project and makes FSDAi an early investor in an innovative digital market and payments platform set to revolutionise the voluntary carbon market.

30th October 2023, Nairobi – FSD Africa Investments (FSDAi) has invested US$3 million in Carbon Value Exchange (Cavex), a digital market and payments platform set to revolutionise the voluntary carbon market by allowing small producers of carbon credits such as farmers and small businesses to sell direct to corporate buyers. The platform aims to channel over US$500 million in carbon financing to small-scale green projects by 2030.

The Cavex platform uses cutting-edge technology to remotely capture real time data on the projects’ activities and calculate how much carbon is being displaced or removed as a result. This means buyers will have full transparency around the credits they are buying and can have confidence that the information they are being given is accurate.

The technology minimises the time and cost required for projects to validate and transact their carbon credits which until now has meant only larger renewable projects such as wind or solar farms, or businesses could afford to join schemes that allow them to trade carbon credits with buyers. Crucially, proceeds from the sale of carbon credits on Cavex will flow directly to the companies, people and communities running the projects using digital finance (e.g. mobile wallets), thereby increasing end to end transparency. By aiming to return 90% of transaction proceeds to project participants through digital finance, Cavex will play a pivotal role in amplifying small-scale, high-quality carbon projects and expanding market access for carbon offset projects across sub-Saharan Africa and eventually the Global South.

FSDAi’s investment is part of a seed funding raise of US$6 million by Cavex which will fund the next stage of its development to commercial viability. This includes early-stage convertible grant support from FSD Africa’s Digital Innovation team (amongst other co-grantors) for the platform’s core development by 4R Digital Ltd, the team which has incubated Cavex from concept to the current stage of investment. FSDAi’s investment in Cavex complements its existing portfolio that enables capital allocation to Africa’s green economic growth by backing existing asset managers and venture builders (examples include Africa Climate Ventures, Nithio, Persistent Energy, InfraCredit, Spark Energy and Catalyst Fund).

FSDAi makes investments in support of innovative financial instruments, facilities and intermediaries that can accelerate the role of finance in Africa’s green economic growth. It is funded by UK International Development and works alongside FSD Africa, bringing different financing tools to play to incubate (FSD Africa) and pave the way for FSDAi early investment.

One of FSDAi’s distinctive features is its mandate to take significant investment risk. FSDAi fills an important funding gap by assuming the commercial risk of novel financial solutions that neither development finance institutions nor private investors are prepared to take.

Anne-Marie Chidzero, CIO, FSD Africa Investments, said: “Cavex is a marketplace platform that can radically expand the reach and impact of the voluntary carbon market across Africa through its use of digital technology and mobile money. This technology will allow rural and urban, micro to large businesses to sell their credits to large off-takers in the global North through the aggregation features of the exchange. This means that small and rural producers can participate and benefit from Africa’s great potential to be an exporter of carbon credits.’’

Nick Hughes, CEO and Co-Founder, Cavex, said: “This investment will help us prove how digital technology can open-up climate finance for many people, communities and projects that are displacing or removing carbon. Cavex has the potential to scale in the way mobile money scaled 15 years ago when Kenya and M-PESA spearheaded a global wave of digital finance. More widely, Africa has a huge role to play in the evolution of carbon markets and in this context, it is critical that we find ways to distribute climate finance more equitably and in a way that has real socio-economic impact.”

About Cavex

Cavex is a digital market and payments platform that connects buyers of carbon offsets to small-scale high-impact projects in the Global South. Cavex enables access to carbon financing for a wide range of small-scale projects with the objective of channelling over $500m to projects by 2030. The innovative approach drives efficiencies by utilising digital technologies and data capture to reduce the time and costs for projects to validate and transact their carbon credits. Cavex also utilises mobile money and innovative digital financial services to ensure that the majority of sales proceeds are channelled directly to projects and project participants.