Category: Press release

Nigeria’s financial markets receive boost from UK-aid via FSD Africa

Posted on by TIMOTHYRADIER

Lagos, April 11, 2022 – Nigeria’s financial markets have been boosted by a series of announcements and commitments by Financial Sector Deepening (FSD) Africa, a specialist development agency working to strengthen financial markets across sub-Saharan Africa.

The announcements were made as part of a two-week trip led by senior leaders from the UK-Aid funded agency in collaboration with partners.  These included the Lagos State Government, the National Insurance Commission (NAICOM) of Nigeria, Infracredit, FMDQ, the UN Environment Programme’s Principles for Sustainable Insurance Initiative (PSI), and BFA Global.

From progress in implementing green bonds to opportunities for the local pension sector and solutions to help the country’s insurance industry respond to climate change, the initiatives will enhance the strength and health of Nigeria’s financial markets, building the foundations for a stronger more resilient national economy.

As Africa’s largest economy and country in terms of population, stronger more robust financial markets are critical for Nigeria’s growth and prosperity. FSD Africa remains a committed partner for strengthening Nigeria’s financial market, and we are thankful to our partners for their continued efforts and collaboration to unlock new pathways to prosperity and resilience for Nigerians.

Mark Napier, CEO – FSD Africa.

Nigeria’s incredible capacity for innovation and entrepreneurship is powering a new era of economic growth that, with the right ingredients, can bring wealth and stability to more Nigerians than ever before. I’m incredibly proud that, through the work of organisations like FSD Africa and its partners, the UK government is helping get those ingredients in place. Core to everything, are effective financial markets, with the capacity to help scale-up businesses, insure against unforeseen risks, and energize the emergence of a sustainable economy.

Ben Llewellyn-Jones OBE | Deputy High Commissioner, UK High Commission in Nigeria

InfraCredit, FSD Africa Sign Technical Assistance Agreement to Unlock Climate-Aligned Local Currency Infrastructure Bonds in Nigeria

Posted on by 5iveafrica

 Lagos: 4th April 2022

We have signed a Technical Assistance Agreement with InfraCredit, a ‘AAA”(NG) rated specialised infrastructure credit guarantee institution in Nigeria, under which we will provide funding for technical assistance to support pre-feasibility studies as well as the pre-transaction and transaction costs, including the design of innovative financing solutions for eligible projects that can issue climate-aligned local currency infrastructure bonds.

The successful implementation of the project will enable up to ten climate aligned infrastructure projects reach financial close, support new job creation and enable more capital markets instruments to be issued to institutional investors.

FSD Africa is pleased to facilitate the design of innovative financial markets products that will support institutions like InfraCredit provide access to inclusive capital. Our technical assistance will support the design of a vital climate-focused infrastructure facility that will bridge short term greenfield capital with long-term capital markets funds. Our partnership with InfraCredit intends to spur increased access to long-term finance and build financial sector resilience and environmental sustainability through local credit enhancement facilities (Guarantees) provided by InfraCredit.
Mark Napier, CEO – FSD Africa

FSD Africa Announces New Chair of the Board and Three New Non-Executive Directors

Posted on by TIMOTHYRADIER

Nairobi, 17th January, 2022: FSD Africa has announced major changes to its Board with the appointment of a new Chair and three new non-executive directors who will help drive the organisation’s vision of strengthening and deepening Africa’s financial sector particularly in the area of green finance.

Frannie Léautier, a highly experienced finance and development expert with a PhD in civil engineering, joins the Board as Chair having previously held senior leadership roles at the the World Bank, the African Development Bank and Trade and Development Bank Group. She replaces Vincent Rague who has stepped down after seven years in the role.

Frannie brings global experience in both public and private finance and a passion for the transformative role financial markets can play in tackling poverty and inequality with a particular focus on gender lens investing and green finance. After working in development finance for many years, Frannie has also set up two companies and in her current role as Senior Partner and CEO at Southbridge Investments, an investment firm providing financial and advisory solutions for private and public sector clients across Africa, she has worked successfully to attract innovative financing to Africa.

Also joining the eight-strong board in January are three new non-executive directors:

  • David Kanja, the former Assistant Secretary-General for the Office of Internal Oversight Services at the United Nations and a former chair of UNICEF’s independent Audit Advisory Committee
  • Greta Bull, Director of Women’s Economic Empowerment at the Bill & Melinda Gates Foundation and the former CEO of CGAP, an independent think tank focusing on financial services for the poor
  • Kanini Mutooni, Managing Director of the Draper Richards Kaplan Foundation, a US foundation that invests in entrepreneurs providing private sector solutions to global problems, and a former chair of the Global Innovation Fund, a $250M investment vehicle supported by the UK, US, Canadian, Australian and Swedish Governments.

The appointments come as FSD Africa, which is funded by the UK’s Foreign Commonwealth & Development Office (FCDO), is moving into a new phase of growth which will see its role as both a provider and an enabler of green finance in Africa grow strongly in prominence, anchored on a strategy that emphasises the development of capital markets, risk markets and the digital economy.

On behalf of our whole team, I am delighted to welcome these new members to our Board. They all bring extraordinary breadth of experience in development and finance at the highest levels with a global perspective and deep understanding of the African context. I am confident that they will bring huge value to FSD Africa. We have ambitious plans for the future and we are humbled to have the support of a Board with such excellent skills as we head into the next phase of our mission to reduce poverty and inequality by tackling the most intractable financial market challenges in Africa.”

Mark Napier, CEO, FSD Africa

I am honoured to be joining FSD Africa at a pivotal point in its and Africa’s development. The organisation has an excellent track record in deepening financial markets in Africa, piloting innovations in areas such as financial inclusion and capital markets. The finance sector has a vital role to play in helping Africa deal with the consequences of both the pandemic and climate change as well as provide funding for sustainable development. This is an exciting moment for FSD Africa to build on its successes and contribute further in a genuinely transformational way.”

New FSD Africa Board Chair, Frannie Léautier.

We are extremely pleased to welcome Frannie, Greta, Kanini and David to FSD Africa’s Board. Each brings a wealth of experience across financial markets and international development. Their leadership and insights will be invaluable for the organisation as it continues to innovate and deliver on an important and challenging agenda. In the face of the combined challenges of the global pandemic and climate change, our shared ambition to work with partner countries to reduce poverty across the continent by fostering sustainable and inclusive markets is as relevant as at any time in FSD Africa’s journey to date”

Rachel Turner, Director, International Finance at the Foreign, Commonwealth & Development Office.

FSD Africa Investments injects £3m into Kenya’s first factoring fintech to boost supply of capital to small businesses

Posted on by 5iveafrica

Nairobi: December 20, 2021

IMFact’s technology-driven factoring solution provides MSMEs with an alternative to bank lending by providing upfront cash payments for their unpaid invoices.

FSD Africa Investments (FSDAi), the investing arm of FSD Africa, has today announced a £3m investment into IMFact, an expanding fintech company that uses supply chain financing to provide working capital to micro, small and medium enterprises (MSMEs).

As a “pooled receivables” factoring business, IMFact purchases bulk invoices from MSMEs for a mix of upfront cash and deferred payments. This gives the sellers access to cash without the need to follow up or wait for invoices to be paid, freeing up capital to buy new inventory, pay suppliers, and grow the business.

IMFact’s “pooled receivables” model differs from the pre-existing invoice discounting practice where the best receivables or invoices are cherry-picked by the financing company meaning the rest of the receivables pool cannot be used as collateral. It also provides faster access to working capital than the invoice discounting usually offered by banks because it does not require an upfront deposit or guarantees.

We are pleased to be working with IMFact to support the rapid financing of MSMEs in Kenya at a time when many are struggling to get access to working capital from traditional lending institutions.  We particularly look forward to seeing the impact the investment has on Kenya’s medical and pharmaceutical sector and hope to encourage further scaling of fintech solutions to solve the funding gap among smaller businesses.
Anne-Marie Chidzero, Chief Investment Officer, FSD Africa Investments

Many of the MSMEs expected to benefit are family-owned businesses including those that distribute medical equipment and pharmaceuticals to public and private organisations. However, IMFact will also be working with supply chain businesses in other industries.

Creation of Africa Green Finance Coalition hailed as “ground-breaking” moment for funding of continent’s green transition

Posted on by 5iveafrica

Nairobi: November 2, 2021

FSD Africa welcomes the Africa Green Finance Coalition, launched at the COP26 World Leaders Summit with the aim of closing the continent’s green finance gap through financial sector reforms, technical assistance, and peer learning.

FSD Africa welcomes the announcement at the COP26 World Leaders Summit that African nations will come together to create the Africa Green Finance Coalition (AGFC).

The AGFC brings together all the countries of Africa to pool resources, share learning and create a pathway for increased flows of green investment capital to the continent. It will facilitate learning and technical assistance across countries, while a peer review mechanism will hold members to account on their commitments to the necessary reforms.

The Africa Green Finance Coalition is exciting because it shows African countries working together and with a high level of ambition to put in place the policy and regulatory reforms that will allow them to compete effectively for the billions of dollars that are potentially available for decarbonisation and adaptation.  We warmly welcome this ground-breaking initiative and look forward to supporting its further development.
Mark Napier, CEO

The AGFC was presented to world leaders by Ukur Yatani, Cabinet Secretary for Kenya’s National Treasury, and Seyni Nafo, Spokesperson of the Africa Group of Negotiators, on day two of the COP26 climate summit.

FSD Africa backs fintech pioneer to build a new platform aimed at increasing access to carbon markets

Posted on by 5iveafrica

London: 12 October 2021

  • Investment in 4R Digital Ltd to build a platform that will use digital technology to help democratise access to climate finance for small, green projects in Africa
  • The Carbon Value Exchange’s (CaVEx) use of remote monitoring technology will create verifiable carbon credits from projects such as solar pumps, electric vehicles, and nature-based solutions, as well as use digital finance to deliver proceeds from credit sales directly to project participants
  • 4R Digital’s co-founder Nick Hughes to reveal details at the AFSIC Investing in Africa Conference in London on 12th

FSD Africa, the UK Government’s flagship financial sector programme in Africa, is making an initial investment (£650,000) in a highly innovative digital solution connecting carbon credits from small-scale green projects across the global south to international buyers. The investment will deliver funding through the test phase of the solution being developed by Nick Hughes, who led the development of Africa’s revolutionary mobile money service M-PESA.

Hughes is co-founder of 4R Digital, a green fintech start-up developing financial solutions for a range of business partners committed to climate positive projects in Africa spanning distributed solar energy, electric mobility and nature-based schemes. 4R Digital is building a solution that connects these projects to investors looking to offset greenhouse gas emissions at the same time as supporting locally-led climate action.

It is illogical that Africans highly exposed to environmental change find themselves barred from carbon markets intended to fund our fight against the climate crisis. 4R Digital is developing a revolutionary solution with the potential to throw open international sources of finance for entrepreneurs, farmers, and small businesses in developing countries.
Juliet Munro, Director, Digital Economy

 

You can also find out more details by visiting the FSD Africa exhibition stand at AFSIC where the 4R Digital team will be giving a presentation on the technology and meeting interested parties.

UK Government commits £35 million to develop affordable green housing in Kenya through UK Climate Investments and FSD Africa Investment

Posted on by 5iveafrica

London: 27 July 2021:

  • To support green affordable housing projects in Kenya, UK Climate Investments (UKCI), the UK Government’s International Climate Finance flagship program, has committed £30 million (Ksh 4.4 billion) and FSD Africa Investments (FSDAi), the investment arm of the UK Government’s flagship financial sector development agency in Africa, has committed £5 million (Ksh 740 million)
  • This £35 million (Ksh 5.2 billion) investment is into a new 10-year locally managed fund which at full size will deliver approximately 10,000 new green, affordable homes for low-income families in Kenya.

Today, UK Climate Investments (UKCI) and FSD Africa Investments (FSDAi) confirmed a £35 million (Ksh 5.2 billion) funding commitment to a Kenyan green affordable housing venture, which has received 100% of its targeted £61 million (Ksh 9 billion) investor backing for first close, enabling this locally managed fund to become operational as early as July 2021.

“We are pleased to be supporting access to affordable urban housing, which is a key pillar of Kenya’s development agenda. We are confident that our investment in the fund and our support for the Open Access platform will address some of the critical factors that prevent financial markets from playing a bigger role in affordable housing in Kenya.”
Anne-Marie Chidzero, Chief Investment Officer, FSD Africa Investments

UK announces £132m of new investments in Kenya and backs Nairobi as an international financial centre in Nairobi

Posted on by 5iveafrica

TheCityUK signs a Memorandum of Understanding with the Nairobi International Financial Centre.

London, UK, 27 July 2021: Foreign Secretary Dominic Raab today welcomed Kenyan President Uhuru Kenyatta to Mansion House in London to announce £132 million of new UK investment in Kenya.

He also launched the Nairobi International Financial Centre, and its formal partnership with the City of London.

At the start of a three-day visit to the UK to co-host the Global Education Summit with Prime Minister Boris Johnson, President Kenyatta witnessed the signing of a new memorandum of understanding between TheCityUK and the Nairobi International Financial Centre Authority, establishing a formal partnership, including closer collaboration with the London Stock Exchange. This will help to channel international investment into Kenya and the wider region, making sure firms and investors are able to make the most of trade and investment opportunities.

Foreign Secretary Dominic Raab said:

“This £132 million package of new UK-Kenya deals from the UK government and British firms will support investment in the region, including building new green affordable homes, connecting households to clean energy, and boosting manufacturing.

“This package of investments will create new jobs and unlock new opportunities for UK and Kenyan businesses by strengthening the relationship between Nairobi and the City of London.”

British insurer Prudential intends to be the first firm to set up in Nairobi’s new International Financial Centre, while Kenyan mining company Mayflower Gold announced plans to dual list its shares on both the London and Nairobi Stock Exchanges in a deal worth £14 million.

Prudential PLC Chair Shriti Vadera said:

“Africa is an important part of our long term growth strategy and I am delighted that the UK and Kenya are collaborating on financial services, where there are many opportunities for innovation. Prudential is proud to be working with both countries on this initiative. We believe that deepening the financial sector across the continent is key to building and driving economic resilience, development and growth in a region of great promise and opportunity. Joining the International Financial Centre in Nairobi is a testament to our long-term commitment to supporting financial sector development across Africa.”

President Kenyatta also secured the backing of UK investors to boost affordable housing and manufacturing across Kenya. £28 million of private investment in Kenyan manufacturing was confirmed today as a result of the UK’s Manufacturing Africa initiative, and UK company ARC Ride announced plans to invest £4.5 million in growing its fleet of electric vehicles in Kenya.

The Foreign Secretary also announced a new £58 million fund, anchored by £35 million of UK government investment, which will finance the construction of 10,000 green affordable homes in Kenya. This is on top of £53 million of investment in Kenyan affordable housing announced during the Foreign Secretary’s visit to Kenya earlier this year.

A new digital customs system for Kenya will make it faster and easier for goods to move between Kenya and the UK, and between Kenya and the rest of the world. Delivered by TradeMark East Africa, and backed by £18 million of UK funding, this will boost Kenya’s economy, allowing firms to take greater advantage of the recently ratified UK-Kenya Economic Partnership Agreement and grow our £1.4 billion mutual trade.

Earlier in the day, President Kenyatta met with COP President Alok Sharma at Kew Gardens to celebrate progress on the Kenya-UK Year of Climate Action. The UK announced £3.7 million of new UK funding to accelerate Kenya’s climate transition, including projects supporting renewable energy, clean cooling, and forest restoration. UK-backed InfraCo Africa will also invest £3.3m in off-grid solar to provide clean energy access to 6,000 families in rural Kenya.

Tomorrow, President Kenyatta will meet with the Prime Minister at Chequers ahead of the Global Education Summit on Thursday, which will convene key global players and decision-makers, with the aim of getting all children into school and learning.

NOTES TO EDITORS

The £132 million announcement today is as follows:

o   A new £58 million fund, anchored by £35 million of UK Government investment, which will finance the construction of 10,000 green affordable homes in Kenya.

o   £28 million of private investment in Kenyan manufacturing through the UK’s Manufacturing Africa initiative.

o   £18 million of UK grant funding for a digital customs system to help smooth Kenya’s international trade, including with the UK, and allow firms to take greater advantage of the UK-Kenya trade deal ratified at the start of 2021.

o   £4.5 million investment by UK company ARC Ride to expand their fleet of electric vehicles in Kenya.

o   £3.3 million investment from UK-backed InfraCo Africa to finance expansion of off-grid solar in Western Kenya, providing 6,000 Kenyan homes with access to clean energy.

o   £3.7 million support from the UK government to back Kenya’s green transition including projects supporting renewable energy, clean cooling, and forest restoration – including Kaptagat Forest, a project spearheaded by Kenyan marathon legend Eluid Kipchoge.

o   £1 million of UK aid funding for technical support, to structure Kenyan infrastructure projects so they are able to attract private investment.

o   £0.9 million investment from InfraCo Africa, backed by the UK government, in Nopea Ride, an electric taxi service.

o   £0.5 million of UK funding for policy advice on how to support the development of green manufacturing in Kenya, including electric vehicles.

o   Mayflower Gold, a Kenyan mining company that employs 400 people, will float £14m of shares on the London and Nairobi stock exchanges.

  • The UK has supported the set-up, business case development and investor proposition of the Nairobi International Financial Centre through Financial Sector Deepening (FSD Africa and FSD Kenya).
  • The MoU comes shortly after the Chancellor Rishi Sunak set out a roadmap to cement the UK’s position as an open and global financial hub, and enhance relationships with jurisdictions around the world: https://www.gov.uk/government/publications/a-new-chapter-for-financial-services

KES 5.3 million accelerator programme launched to drive innovation in Kenya’s insurance sect

Posted on by 5iveafrica

The accelerator programme aims to harness technology innovations that increase insurance coverage among low-income consumers.

Nairobi, July 16, 2021 – FSD Africa, the Insurance Regulatory Authority, and Tellistic Technology Services have launched BimaLab [launch recording], a KES 5.3 million accelerator programme designed to support Kenyan innovators to develop innovative solutions for the insurance sector.

The BimaLab accelerator program will emulate global best practices and place them in a local context to build Kenya’s most competitive and attractive start-up accelerator program. Through the programme, 12 innovators will benefit from a ten-week programme that provides them with expertise, resources, and support to develop and scale market-ready solutions.

“At FSD Africa, we are committed to the growth of the insurance sector and are excited to be involved in grooming the next generation of insurance innovators. By supporting start-up innovators through the BimaLab II accelerator programme, we will not only enhance insurance coverage but also deliver insurance solutions that are both convenient and efficient.”
Kevin Massingham, Director, Risk & Resilience, FSD Africa

Applications are now open on: https://bit.ly/36uUtu9. The deadline for submission is 31st July 2021.

FSD Africa launches new partnership to deliver climate finance training in Africa

Posted on by 5iveafrica

Th first-of-its-kind partnership will equip Africa based policymakers, regulators, academics, and business leaders with the knowledge they need to secure financing and tackle the climate crisis.

NAIROBI, 29 June 2021: FSD Africa has launched a first-of-its-kind climate finance training programme, designed to expand access to funding for climate mitigation and adaptation on the continent.

Developed collaboratively with the National Treasury and Planning – Kenya, the training will be delivered through a coalition of global partners, including the University of Cambridge Institute for Sustainability Leadership (CISL), the International Institute for Environment and Development (IIED), and the Eastern and Southern Africa Management Institute (ESAMI).

The training is focused on giving regional policymakers, regulators, academia, business leaders and financial market professions the knowledge needed to access climate finance from global sources and fast-track capital mobilisation for projects across Africa.

The training programme will target 100 trainees annually with the first cohort of 50 joining in August. A subsequent class will be held in September. Through a combination of knowledge building and targeted investment, FSD Africa aims to help firms, regulators, and government ministries in Africa and beyond to better identify, understand, manage, and monitor key climate and environmental risks and opportunities.

“This is an exciting opportunity to partner with decision-makers in financial markets from the public and private sectors. Committing to raising awareness for the development of appropriate policies and financial products is crucial if we are to reduce the cost and impact of climate change in the region.”
Mark Napier, CEO

Enrolment is open. To learn more visit https://esami-africa.org/climatefinance