Category: Press release

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

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

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

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

The investment will enable AHN to:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

BURN Issues Usd $10m Green Bond to Support Clean Cooking In Sub-Saharan Africa

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  • First-ever green bond issued in Sub-Saharan Africa designated for clean cooking financing.
  • Proceeds from the green bond will accelerate the distribution and adoption of sustainable cooking solutions to households across Africa.

Nairobi, 27th October 2023… BURN Manufacturing (BURN), the world’s leading clean cookstove manufacturer, distributor, and carbon-offset project developer, announces the issuance of Sub-Saharan Africa’s first-ever green bond designated for clean cooking financing of USD $10 Million.

The proceeds from the bond will allow BURN to increase existing manufacturing capacity in Kenya as well as launching a new manufacturing facility in Lagos, Nigeria. Production will increase from the current 400,000 units per month to 600,000 units and will produce a range of life-saving biomass, electric and LPG stoves.

BURN stoves have been independently verified by reputable institutions such as University of Pennsylvania, University of Chicago, as well as through a comprehensive impact assessment survey conducted by Yunus Social Business. The stoves have consistently been proven to provide substantial health, financial, and climate action benefits. The funds from the Green Bond are poised to extend these benefits to an extra 2 million households in the year 2024.

“Our decision to issue the first green bond to support clean cooking underscores our strong belief in the power of financial innovation to drive positive environmental and social change. Leveraging benefits such as investment communities’ interest in green financing and potential tax advantages to investors, green bonds have gained considerable traction in recent years. BURN is excited to deploy this innovative instrument to catalyze sustainable development” said Peter Scott, CEO and Founder of BURN.

The bond issuance was supported by DRY Associated Limited acting as the Placement Agent. FSD Africa, a specialist development agency funded by UK International Development, played a key role in providing technical input on the bond framework and contributing technical assistance for the second-party opinion which was conducted by Agusto & Co., the leading Pan-African Credit Rating Agency and Green Bond Verifier.

Commenting on the announcement, Evans Osano, Director, Capital Markets, FSD Africa, said: “We are proud to have supported this landmark issuance, the first-ever green bond to finance clean cooking activities in sub-Saharan Africa. Biomass fuel is the main source of energy for cooking for the majority of households in Africa and the proceeds from this capital raise will support these households to transition to more sustainable alternatives. These are not only better for the environment but also have health benefits from the reduction of particulate and carbon monoxide emissions which particularly impact women given their greater exposure.”

Ikechukwu Iheagwam, Regional Director (East Africa) Agusto & Co. Said “We are delighted to have supported BURN Manufacturing in providing a Second Party Opinion (SPO) on this landmark issuance of the first-ever green bond to finance clean cooking in Africa. BURN displayed transparency in its pursuit to reduce greenhouse gas emissions following the very detailed scientific process backed by international standards and robust laboratory testing to ensure that the cookstoves consume less wood and charcoal fuel at ISO/IWA Tier 4 thermal efficiency ratings levels. While this project is expected to have a significant positive environmental impact in terms of tons of firewood saved and tons of carbon dioxide emissions mitigated for each stove manufactured, the catalytic social, financial, economic and health benefits are quite compelling.”

“Dry Associates is proud to be the Transaction Advisor on BURN’s Green Bond programme. The Green Bond programme underscores the opportunities available for fixed-income investments in Kenya to catalyze capital formation, employment, and economic growth. We are attracted to BURN for the leadership team’s focus, green finance acumen and the scale and professionalism of BURN’s manufacturing operation in Kenya. BURN’s export growth story is a stellar example that Kenya can indeed deliver quality to the world” added Reuben Mabishi, Head of Research from Dry Associates Investment Bank.

A 2022 report by the International Energy Agency on the Africa Energy Outlook suggests that achieving universal access to clean cooking fuels and technologies by 2030 requires shifting 130 million people globally away from dirty cooking fuels each year.  The issuance of green bonds provides a crucial avenue for supporting this shift towards the adoption of cleaner cooking solutions for people.

The notes have been issued by way of a private offer to a select group of institutional and qualified investors in accordance with Regulation 21 of the Capital Markets (Securities) (Public Offers Listings and Disclosures) Regulations, 2002. An Information Notice has been provided to the Capital Markets Authority.

About BURN

 Founded in 2011, BURN was created with the aspiration to save lives and forests by revolutionizing the clean cookstove sector. While traditional, inefficient cookstoves can bankrupt families, damage their health and destroy forests, BURN’s best-in-class stoves can save families money on fuel, limit indoor air pollution and protect forests. BURN is now Africa’s leading clean cooking company and one of the only carbon-offset project developers to cover the full carbon value chain, from project design and in-house monitoring to credit issuance. Headquartered in Kenya and with direct operations in 10 African countries, BURN employs 2,500 people across Africa. The company has made and distributed over 4 million clean cookstoves, transforming the lives of over 22 million people and avoiding 17 million tons of CO2 from entering the atmosphere. Learn more at burnstoves.com.

About Agusto & Co.

Agusto & Co. is the leading Pan African credit rating agency and a business information provider, with offices in Nigeria (Lagos), Kenya (Nairobi) and Rwanda (Kigali). Agusto & Co. was licensed by the Capital Markets Authority (CMA) of Kenya as a Credit Rating Agency in 2013. The company is a foremost research house and an expert voice on the major economies, industries and businesses operating in sub-Saharan Africa. Agusto & Co. is an Approved Verifier by the Climate Bonds Standard with the capacity to perform verification of green bonds, projects and assets in Africa. Also, Agusto & Co. is one of the companies that have voluntarily aligned with the International Capital Market Association’s (ICMA) Guidelines for External Reviewers for the adoption of Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines and Sustainability-Linked Bond Principles.

Envolt launches pioneering MUR 2.0 billion green bond programme for major solar energy projects in Mauritius, supported by MCB Capital Markets and FSD Africa

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23rd October 2023, Port Louis, Mauritius – Envolt, the renewable energy production arm of ENL Group, supported by transaction advisor MCB Capital Markets as well as FSD Africa, has announced its intention to undertake a green bond issuance of MUR 2 billion (approximately USD 45 million), with a tenor of between three and seventeen years.

The landmark transaction, under the SADC Green Bond Programme, has been initiated by a first issue of MUR 510 million (equivalent to approximately, USD 11 million) and will be completed by the 31st of December 2028 (as stipulated in the Programme Memorandum), will finance the construction and operationalisation of thirteen new solar farms in Mauritius, boasting an aggregate capacity of 14.4 MW and to be completed over a period of 10-17 months.

The issuance represents a major milestone for the Mauritian renewables sector, as well as the country’s capital markets, being the first green project bond issuance for the financing of a renewable energy in the country. Moreover, these green project bonds will constitute the first of their kind issued in Mauritius under the Green Bond Principles 2021 (as devised by the International Capital Market Association (ICMA)), which are in alignment with global standards and militate against greenwashing by mandating rigorous evaluation of projects and their respective environmental or emissions claims.

Crucially, this bond programme will accelerate the maturity and expansion of Mauritius’ capital markets and advance the country’s efforts to attract private capital investment to the country. As importantly, the bond issuance will contribute to the strengthening of green sustainable finance in Africa, as a demonstration of its capacity to finance vital infrastructure projects indispensable for wider economic development.

The UK Government established FSD Africa in 2012 and has been its sole funder since. Over time, FSD Africa has become the leading financial sector development organisation on the continent. FSD Africa was delighted to support Envolt, as well as its transaction advisor MCB Capital Markets, on the bond programme, the Green Bond Framework and its independent review.

FSD Africa launched its green bonds programme in Kenya in 2017 as part of its mission to make finance work for Africa’s future and has since expanded it to cover 20 African countries including Nigeria, Mauritius, Morocco and the Southern African Development Community (SADC) region, consisting of 16 countries. It works with governments on policy reforms and development to promote private investments and domestic capital mobilisation through green/sustainable bonds and other instruments (including gender bonds) supports banks and corporates to structure and bring these products to market and further supports industry initiatives such as developing a pool of local accredited green bond verifiers. The programme has so far resulted in more than US$ 1 billion worth of transactions for sustainable/climate-linked projects and assets, the creation of more than 50,000 direct and indirect jobs and increased access to clean energy, clean water and clean transport for more than 3 million people.

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

Rony Lam, CEO MCB Capital Markets, said: “We are proud to have advised EnVolt on this transaction, which sets international standards for the issuance of green project bonds in Mauritius. This success reflects the rapid development of the local currency bond market over the past eight years. Mobilising national resources to finance the local economy and infrastructure projects is essential for the development of the African continent.”

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

Charlotte Pierre, British High Commissioner to Mauritius, said: “International bond markets remain among the most effective and good-value options for financing countries’ energy transition and major infrastructure investment programmes, and we hope many more states follow Mauritius’ example.”

FSD Africa @ AFSIC 2023

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This year FSD Africa joins AFSIC 2023 in celebrating their 10-year anniversary with a decade of impact in strengthening and greening financial markets in Africa. At AFSIC 2023, FSD Africa will host an afternoon of high-profile dialogue including sessions entitled Leveraging Carbon Markets for Africa’s Green Transition, Africa’s Green Future, Harnessing the Power of Finance for Nature and Novel Financing Structures to Unlock Africa’s Climate Agenda.

FSD Africa, one of AFSIC 2023’s top sponsors, is focused on making finance work for Africa’s future. From its base in Nairobi, Kenya, its 35 financial sector experts work alongside partners to design and deliver programmes in more than 30 countries across Africa with the aim of driving large-scale change in financial markets and accelerating the role of finance in Africa’s green economic growth. Panel content at AFSIC 2023 will feature excellent invited speakers who are leaders in their field, and they will take advantage of discussing the below hot topics ahead of the November 2023 COP28.

Leveraging Carbon Markets for Africa’s Green Transition

According to some estimates, carbon offsets in the form of tradable carbon credits could generate billions of dollars for African countries by 2030 offering a major source of funding for the continent’s green economy. The recent auction in Nairobi, Kenya, of 2.2m carbon credits organised by a Saudi company was an indication of the huge demand and the opportunity that the voluntary carbon market presents for Africa and for investors interested in supporting Africa’s green transition. But there are many challenges that need to be overcome including concerns over regulation, market integrity, pricing, and transaction costs.

In this fireside chat, leading entrepreneur James Mwangi, co-founder of Dalberg Advisors, founder of the Climate Action Platform for Africa and CEO of Africa Climate Ventures, a venture-builder focusing on carbon mitigation, capture and removal, discusses the opportunities for companies and investors and the challenges facing the market.

Africa’s Green Future: Unlocking Capital for Climate-Positive Growth

Africa has the potential to achieve both climate targets and economic prosperity through a climate- positive growth path. However, this requires substantial investment and creative solutions across the finance sector. From small climate-tech start-ups to large sustainable infrastructure projects, mobilising capital is crucial to realising this ambition.

In this session delivered in a TED talk style, experts from capital markets in Africa and globally will discuss how innovative approaches in finance can transform green growth and resilience on the continent. By unlocking capital and fostering collaboration, Africa can pave the way for a sustainable and prosperous future.

Harnessing the Power of Finance for Nature

This session will present current investable nature-positive opportunities for institutions. High-level speakers from both financial institutions and development organisations will discuss the role of governance and frameworks such as the TNFD (Taskforce on Nature Related Financial Disclosures) as a catalyst for investment in nature. The session will also elicit debate and discussion on the role of finance in enabling nature conservation from the perspectives of the real economy for instance by presenting examples of where financing for nature has worked in Africa.

Novel Financing Structures to Unlock Africa’s Climate Agenda

Africa faces significant challenges in financing its climate agenda with traditional funding models often insufficient for implementing ambitious climate projects across the continent. To overcome this, novel financing structures are emerging as solutions to unlock the necessary resources. These new financing approaches go beyond traditional grants and loans to encompass mechanisms such as climate bonds, green bonds, carbon exchanges and alternative investment vehicles along with instruments that reduce private investment risk including guarantees, insurance, and blended capital, as well as public-private partnerships.

This panel discussion brings together experts to discuss innovative financing approaches, identifying key success factors and the challenges and how they can be overcome. The session will also highlight the importance of collaboration and partnerships between various stakeholders in mobilising resources and driving climate action in Africa.

African financial institutions pledge to protect and restore nature in landmark statement

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“Nature Voices Pledge” will be launched at a Presidential Panel on nature at the Africa Climate Summit

Nairobi, September 5th, 2023: Some of Africa’s largest financial institutions are backing a call to conserve and restore nature amid a biodiversity crisis that threatens the wellbeing and livelihoods of tens of millions of its people.

The landmark “Nature Voices Pledge” is being launched by the African Natural Capital Alliance (ANCA), a collaborative membership organisation whose collective assets total US$390 billion. Among its members are major financial institutions such as Standard Chartered, KCB, Equity Bank, Ecobank, Access Bank, DBSA, Zanaco, FirstRand, Investec, Sanlam, Old Mutual, CalBank, ICEA LION and Fidelity Shield.

The Pledge commits the ANCA membership, which also includes governmental organisations such as the Ghana Ministry of Environment, Science, Technology and Innovation (MESTI) and civil society organisations including the African Wildlife Foundation, to support conservation and restoration efforts, integrate nature into their decision-making and promote sustainable financing solutions.

It comes amid growing evidence that the natural capital on which tens of millions of Africans depend is being lost due to factors including overexploitation, overpopulation, land-use changes and climate change. The value of the natural capital lost to Africa every year is estimated to be $195 billion according to the United Nations Environment Programme (UNEP).

The “Nature Voices Pledge” is to be announced at a Presidential Panel titled “Pioneering the Future of Nature in Africa” which is being hosted by the Africa Climate Summit 2023 on 5th September 2023

The event, which is being supported by ANCA, brings together leaders from several African nations including the Presidents of Rwanda, Republic of Congo and Burundi, to engage in a high-level dialogue on the future of nature in Africa. It will provide a platform for African leaders to discuss key challenges, opportunities, and policy interventions aimed at promoting nature and biodiversity for sustainable development across the continent.

The ‘Nature Voices Pledge’ encapsulates the shared commitment of ANCA’s member institutions to prioritise nature-positive practices and integrate environmental considerations into their core operations. It highlights three key principles that underline ANCA’s dedication to shaping a more sustainable and resilient Africa:

  • Acknowledging the Importance of Nature
  • Emphasizing the African Context
  • Assuming Responsibility

The Pledge also sets out a set of concrete actions ANCA members will take to achieve their nature-centred goals:

  • Support Nature Conservation and Restoration
  • Integrate Nature into Decision-Making
  • Promote Sustainable Financing Solutions
  • Strengthen Transparency and Reporting
  • Support Alignment of Policies and Regulations
  • Foster Collaboration and Knowledge Sharing

This historic commitment underscores the group’s urgency and conviction in driving transformative change toward a sustainable future for Africa.

Dorothy Maseke, Head of ANCA Secretariat and Lead of Nature Finance at FSD Africa, said:

“We in Africa are privileged to live on a continent so rich in natural capital but we must also recognise that our economy and our well-being depends on using it sustainably. This landmark pledge signifies that the members of ANCA are determined to play our part by putting nature at the heart of decision-making, so we reflect its true value and drive investment into activities which conserve and enhance nature rather than destructive activities for short term gain.”

Kaddu Sebunya, CEO, African Wildlife Foundation, said:

“As we stand on the cusp of the Africa Climate Summit, we come with a resounding message of hope, unity, and action. We support the Nature Voices Pledge and believe unity is essential to ensure the realisation of nature’s conservation in Africa for prosperity and future generations. At the African Wildlife Foundation we believe that biodiversity stands as a powerful ally in the face of our pressing climate challenges. We understand that acknowledging biodiversity’s pivotal role is the key to a harmonious future for both nature and humanity.”

FSD Africa Investments Commits US$19.5 Million To Boost Climate Resilience In Africa

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Investments in Acre Impact Capital’s Export Finance Fund, Catalyst Fund and Camco’s Spark Energy Services will help bridge financing gap for green projects

Nairobi, 5th September 2023 – FSD Africa Investments (FSDAi), the investing arm of FSD Africa, today announces new investments totalling US$19.5 million to support climate adaptation and climate-aligned infrastructure projects in Africa and to promote the continent’s resilience to climate change.

The investments in Acre Impact Capital’s Export Finance Fund I, Catalyst Fund and Camco’s Spark Energy Services, demonstrate FSDAi’s commitment to partnering with local asset managers and venture builders to support climate-smart projects that would otherwise struggle to access the finance they need.

The new commitments include:

  • US$12 million in Acre Impact Capital’s Export Finance Fund I, the first to address the lack of commercial debt financing for sustainable infrastructure projects guaranteed by official Export Credit Agencies (ECAs). Financing from ECAs reduces the cost of debt and makes infrastructure projects more affordable. However, in order to access ECA support, project sponsors have to make a down payment of ~15% of the project value using commercial debt which is increasingly scarce. FSDAi’s investment in Acre will facilitate the flow of ECA finance for social and green infrastructure, mobilising US$ 67 million directly related to FSDAi’s investment, providing improved access to essential services for over 500,000 people and generating over 2,000 jobs.
  • US$4.5 million in Catalyst Fund, a pre-seed venture capital fund and accelerator that will invest in and provide hands-on venture building support to tech start-ups that aim to improve the resilience of climate-vulnerable communities across Africa. The investment will help demonstrate venture building as an investible model that can accelerate the growth of climate-smart businesses in Africa with a target of creating or accelerating 40 businesses and helping 5m individuals and households to adapt to the effects of climate change.
  • US$3 million into Spark Energy Services (Spark), which is designed and managed by climate and impact fund manager Camco to provide financing to captive solar and energy efficiency developers in Sub-Saharan Africa. The platform seeks to address the lack of financing available to developers of smaller scale projects by innovatively aggregating small projects to reduce transaction costs and diversify risk. FSDAi’s investment in Spark will support a just transition and achieve local development benefits by facilitating a 0.61m MtCO2e (million metric tons of carbon dioxide equivalent) net reduction in greenhouse gas emissions, working in partnership with local developers, creating 1,400 jobs and providing a lower cost, reliable and clean power supply to commercial and industrial SMEs.

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 through UK International Development from the Foreign, Commonwealth & Development Office (FCDO).

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.

The new investments will be announced by Andrew Mitchell, UK Minister for Development, at a joint event being held by FSD Africa and PIDG during the Africa Climate Summit on September 5th.  It is one of a number of transactions and market building initiatives being unveiled by FSD Africa during the Summit which are designed to create a more innovative financing environment and so boost the participation of international and domestic private capital in Africa’s green economy.

Commenting on the investments Andrew Mitchell, UK Minister for Development, said:

“The climate finance projects we announced demonstrate the strength of our commitment to Africa’s green future. UK leadership is determined to unlock the funding needed internationally to drive forward the green agenda. Our ambitions can only be realised through partnership and cooperation, with Africa and the international community. We are stronger together – and we go far when we go.”

Anne-Marie, Chief Investment Officer, FSD Africa Investments, said:

“For Africa to achieve a green economic growth pathway, access to green finance needs to be scaled up. Our mission is to enable investments to flow by taking more risk and working with local intermediaries to bridge the gaps in the current financing structures.  We are backing these three funds, which provide innovative ways to finance businesses which will make a big contribution to Africa’s green economy.”

Pan-African Fund Managers’ Association launched to increase cross-border collaboration and drive investment into the green economy

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Nairobi, Kenya, September 04, 2023

In a first for Africa today sees the launch of the Pan-African Fund Managers’ Association (PAFMA), a new trade association bringing together fund managers from across the continent with backing from some of the industry’s most powerful players.

The five founding members of PAFMA are the 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). These national associations, which between them account for assets under management (AUM) of over US$70 billion, have established PAFMA in collaboration with FSD Africa, a specialist development agency working to build and strengthen financial markets across Sub-Saharan Africa

The launch of PAFMA, at an event in Nairobi on 4th September during the Africa Climate Summit 2023 where the founding members will sign an MoU, comes as the industry faces many challenges. These include historically low savings rates – which as of 2021 stood at just 24% of GDP in Sub-Saharan Africa – along with a scarcity of viable investment opportunities and the escalating environmental risks confronting the continent.

Recognising the prevalent dominance of government securities among the current investible assets managed by fund managers on the continent, PAFMA’s primary objective is to foster the adoption of alternative investments. This includes a particular focus on green finance, a pivotal driver for bolstering various sectors of the economy. By championing these alternative investment avenues, PAFMA seeks to not only stimulate job creation but also enhance income generation.

Among its activities, PAFMA aims to spearhead localised research efforts and initiatives to enhance knowledge sharing and capacity building enabling fund managers to evaluate and make investments in regions and countries where they did not previously have a presence. Serving as a proactive advocate, PAFMA will also offer policy insights and champion the interests of its members in both regional and international arenas as well as facilitating regular gatherings of fund managers from across Africa.

Commenting on the launch, Oguche Agudah, CEO, PENOP Nigeria, said:

“I’ve always believed that the solutions to Africa’s challenges lie within us. We need to come together, commit to collaborate, and speak with one voice. The managers of capital on the continent have a unique opportunity to individually and collectively determine to a large extent the trajectory of the continent. Working together, we can achieve so much more. The time is now.”

Patrick Kariuki, Chairman, FMA and Managing Director, Gen Africa Managers Ltd, said:

“The Fund Managers Association is very excited to partner with other like-minded Pan-African Fund Manager Associations. Our industry and its future growth depend on vibrant collaboration amongst fund managers across Africa. With PAFMA, fund managers will be able to evaluate and make investments in regions and countries where we did not have sufficient local context. The Fund Managers Association is honoured to be invited to this exciting and very important initiative.”

Mark Napier, CEO, FSD Africa, said:

“We are excited about the establishment of the Pan-African Fund Managers’ Association which comes at a timely juncture. This association will be integral for African Fund Management organisations to ensure that they share industry knowledge, manage risks with a continental and international view and drive needed investment in critical sectors such as climate mitigation and adaptation. This African-led initiative is a powerful demonstration of our shared vision to transform Africa’s financial and investments sector landscape.”

CRDB Bank hailed for Launching Kijani Bond with Unprecedented 10.25% Interest Rate: A Green Investment Opportunity for All

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Dar es Salaam. 31st August 2023 — The Minister of State, President’s Office for Investment and Planning, Hon. Prof. Kitila Mkumbo, hailed CRDB Bank for ushering in a new era of sustainable investment through the launch of the pioneering Kijani Bond. This historic launch event took place today at the Serena Hotel in Dar es Salaam.

In his speech, Hon. Prof. Mkumbo acknowledged CRDB Bank’s role in providing local institutions a pathway to harness the transformative potential of green bonds. He highlighted the government’s dedication to fostering an enabling environment for investors by enhancing existing policies, laws, and regulations.

“CRDB Bank has already set an exemplary precedent,” he remarked. The issuance of the Kijani Bond, with its multi-currency Medium Term Note (MTN) Programme of USD 300 million, signifies a monumental stride toward realizing Tanzania’s National Financial Sector Development Master Plan 2020/21 – 2029/30, a strategic blueprint to empower both public and private sectors for the greater welfare of the people.

CRDB Bank’s Group CEO and Managing Director, Abdulmajid Nsekela, echoed the sentiment that the Kijani Bond is accessible to all, contrary to misconceptions. He affirmed, “This is an investment that even an average Tanzanian can partake in and benefit from, with a minimum initial investment of just TZS 500,000.” Nsekela underscored the unique proposition of the Green Bond: attractive investment yielding an impressive 10.25% interest per annum. He emphasized the unparalleled stability of this investment, insulating investors from market fluctuations.

The launch of the Green Bond is intrinsically linked with the offer opening, spanning from August 31 to October 6, 2023. Subsequent to this period, the bond will be listed on the Dar es Salaam Stock Exchange (DSE). CRDB Bank anticipates raising TZS 40 billion (with a green shoe of up to TZS 15 billion) during this first phase, which reflects the faith investors place in this innovative financial instrument. The Kijani Bond launch marks a historic moment as CRDB Bank introduces the largest green bond not only in Tanzania but across Sub-Saharan Africa.

“CRDB Bank has often been a pioneer,” remarked Dr. Ally Laay, CRDB Bank’s Board Chairman, who expressed deep gratitude to the Capital Markets and Securities Authority (CMSA) and other stakeholders who contributed to the approval of the green bond. Dr. Laay emphasized that both local and international investors have the opportunity to benefit from this bond, as it offers loans in Tanzanian Shillings or US Dollars.

The CEO of the Tanzania Capital Market and Securities Authority (CMSA), Nicodemus Mkama, lauded CRDB Bank for achieving this historic milestone and reaffirmed the alignment of the green bond with international standards. Mr. Mkama remarked, “We expect that Kijani Bond will be instrumental in further developing green financing in Tanzania.” The CMSA’s endorsement underscores its confidence in CRDB Bank’s commitment to sustainable financing and sets the stage for significant growth in climate financing.

Evans Osano, Director, Capital Markets, FSD Africa, said: “The issuing of this trailblazing green bond demonstrates that Tanzania’s rapidly expanding green economy presents huge opportunities for investors, both international and domestic. As the first green bond to be issued in Tanzania, it is also a major moment for the sustainable finance agenda in Africa and we are proud to have been able to provide the technical assistance.”

FSD Africa is providing technical assistance in Kijani Bond issuance, while Stanbic Bank assumes the pivotal role of lead underwriter and book runner for the forthcoming green bond issue, with Denton Tanzania Law Chamber providing legal advisory services. Orbit Securities Tanzania serve as the sponsoring broker, KPMG is entrusted with the responsibilities of the reporting accountant, and Sustainalytics provides a second party opinion.

The Kijani Bond has garnered the attention of global investors, including The International Finance Corporation (IFC), a member of the World Bank Group. IFC intends to invest 40% of the total issuance, USD 300 million.

To invest in the Green Bond, individuals can visit any CRDB Bank branch or authorized broker. Investment forms are available on CRDB Bank’s official website www.crdbbank.co.tz, and inquiries can be directed to the Customer Service Center via the toll-free number 0800008000.

The issuance of the Kijani Bond demonstrates CRDB Bank’s dedication to environmental, social, and governance (ESG) principles, strengthening its position as a key player in green financing. With a history of sustainable initiatives and recognition from the United Nations Green Climate Fund (GCF), CRDB Bank continues to lead the way in fostering green finance solutions.