Category: Press release

FSD Africa Investments joins 2X Collaborative

Posted on by Kihingu Inc

Membership to 2X Collaborative paves way for FSD Africa’s participation in the co-creation of the 2X Certification mechanism and enhances FSD Africa Investment’s co-investment, networking and partnership opportunities on gender lens investing

Nairobi: 5th July 2022: FSD Africa Investments (FSDAi), the investment arm of FSD Africa has today joined the 2X Collaborative.  Launched at the UN Generation Equality Forum 2021 in partnership with GenderSmart and the Investor Leadership Network (ILN), the 2X Collaborative is a leading industry body for gender lens investing. Its mission is to convene and equip investors to increase the volume and impact of capital flowing towards women’s economic empowerment.

FSDAi’s membership to 2X Collaborative will provide access to peer learning networks, knowledge, co-investment platforms, partnership and training opportunities, and innovative investment tools.  These benefits are useful for FSDAi in applying a gender lens investing framework through its investments such as Nyala Venture which provides a facility for local capital providers that are mostly women-led or apply a gender lens in their approach.

There is a huge opportunity to finance inclusive and accelerated green growth in Africa by tapping into the economic participation of women. We are therefore delighted to join the 2X Collaborative and shine a light on GLI investing to advance innovations that demonstrate the investment case for gender smart finance.
Anne-Marie Chidzero, CIO – FSD Africa Investments

World-first stress test shows African financial institutions are unprepared for nature-related risk

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23 June 2022, Nairobi: A new report from Vivid Economics by McKinsey and the UK-funded financial sector development agency FSD Africa underlines the importance for financial institutions to unlock the potential benefits of investing in businesses that protect and grow nature.

Applying first-of-its-kind analysis to three private banks and the financial systems of Zambia, Egypt, Ghana, Mauritius, Kenya, and South Africa, the report shows that for the most exposed lending portfolios, for example, in Zambia and Ghana, nature-related risks in agriculture and extractives could almost double expected losses by 2030, wiping $millions off the value of their loan books. These nature-related risks are comparable with climate-related risks seen in similar sectors.

The impacts of shifting to a nature-positive society are material and already underway. There is a significant upside to be captured but financial institutions must institute new approaches to portfolio management that get ahead of changing regulation – of consumer preferences, and of the huge economic damage threatened by tipping points in critical natural systems.
Mark Napier, CEO – FSD Africa

FSD Africa Investments commits £8m to finance a new class of asset allocators in Africa

Posted on by Kihingu Inc

Tapping the capabilities of Africa’s emerging class of capital managers to address a systemic gap in finance for small and growing businesses

Nairobi: 9 June 2022

Our investment arm, FSD Africa Investments (FSDAi), has announced an £8 million investment to support a new class of investors who are financing Africa’s small businesses and consider gender equity a key driver of financial performance.

In partnership with the Collaborative for Frontier Finance (CFF), and the Facility Manager, a Joint Venture of Cardano Development and Total Impact Capital Europe, FSDAi will provide the critical anchor funding for a new special purpose vehicle, Nyala Venture.

Nyala Venture will bridge the funding gap left by other institutions, by targeting a new class of capital providers serving small and growing businesses, particularly those which are led by women or are applying a gender lens investment strategy in Nigeria, Ghana, Kenya, Senegal, South Africa, and Uganda.

This new class of asset managers have better networks and embedded boots on the ground, enabling them to play a huge role in supporting and growing local businesses. Our support to them is part of our journey to discovering new investment avenues through which we could impact the overlooked but critical sectors of Africa’s economy and tap into the opportunity presented by women as investors and founders.
Anne-Marie Chidzero – Chief Investment Officer, FSD Africa

Leading financial institutions partner with UNECA and FSD Africa to form the African Natural Capital Alliance

Posted on by Kihingu Inc

The new alliance aims to coordinate policies and practices at financial institutions, companies, regulators and policymakers toward the growth and protection of Africa’s natural resources

Nairobi: 8th June 2022 

A group of leading financial institutions from across Africa has come together with Ghana’s Ministry of Environment, Science, Technology & Innovation (MESTI), and the UK-funded financial sector development agency FSD Africa as founding members of the African Natural Capital Alliance (ANCA).

The alliance, in partnership with the United Nations Economic Commission for Africa (UNECA), will act as an African-led collaborative forum for mobilizing the financial community’s response to nature-related risks and opportunities across the continent. The ultimate aim of ANCA is to help grow and protect Africa’s natural capital by shifting financial flows from destructive activities for short-term gain to long-term stewardship of nature for sustainable economic growth.

Among the founding members are Access Bank, the Development Bank of Southern Africa (DBSA), Ecobank, Equity Bank, FirstRand, Investec, Sanlam, Standard Chartered and Zanaco. FSD Africa is acting as coordinator for the alliance with global management consultancy Oliver Wyman acting as execution and knowledge partner. The Cambridge Institute for Sustainability Leadership (CISL) is also joining ANCA as a knowledge partner while initial support for the alliance is being provided by UNECA and the United Kingdom’s Department for Environment, Food & Rural Affairs (DEFRA).

ANCA is also working with the Taskforce on Nature-related Financial Disclosures (TNFD) to provide an African voice in the development of its ‘beta’ reporting framework for nature-related risk and opportunities and is taking part in TNFD’s pilot testing programme. Announcements about other members joining ANCA from the public and private sectors are expected over the next few months.

The reliance of African nations on their rich natural capital is both a source of vulnerability and competitive advantage. The case is clear for realigning investments to deliver a nature-positive future for Africa. To achieve this, we need financial institutions, companies, regulators, and policymakers working together.
Mark Napier, CEO – FSD Africa

ANCA members will be joining with other leading figures representing the finance and policy sectors on 23rd June 2022 at a landmark event to discuss why African leadership on nature will be critical to its economic development, the economic opportunities that could be unlocked by shifting capital into nature-positive activities and the risks of inaction and continued nature destruction.

The event will also be the first chance to hear the results of a major study by Vivid Economics and FSD Africa for ANCA which, for the first time ever, quantifies how nature-related opportunities and risks could impact the value of African financial institution portfolios.

Click here to register by June 21st.

Ethiopia’s financial sector set for transformation with launch of FSD Ethiopia

Posted on by TIMOTHYRADIER

Addis Ababa, May 19, 2022: Newly established development agency Financial Sector Deepening Ethiopia (FSD Ethiopia) was officially launched at the Hyatt Regency Hotel, Addis Ababa, Ethiopia. With funding from UKAid and the Bill & Melinda Gates Foundation, FSD Ethiopia will build on FSD Africa’s initial efforts to strengthen the country’s financial sector. About 120 guests attended the launch of FSD Ethiopia, including representatives from the Bill & Melinda Gates Foundation, the UK government’s Foreign, Commonwealth & Development Office (FCDO), Ethiopian Investment Holdings (EIH), the National Bank of Ethiopia (NBE), financial service providers, development agencies and other partners.

 

We believe now is the right time to establish an FSD programme in Ethiopia.  There are huge opportunities in Ethiopia’s financial sector reforms but also challenges ahead.  Decisionmakers in both the public and private sectors will benefit from access to the neutral, technically informed advice and strong regional networks that FSD Ethiopia will be able to contribute

Mark Napier, CEO – FSD Africa.

The creation of the Ethiopian Securities Exchange moves a step closer

Posted on by TIMOTHYRADIER

Addis Ababa, May 18, 2022 – Ethiopia’s Ministry of Finance, the Ethiopian Investment Holdings and FSD Africa have today signed a cooperation agreement to establish the Ethiopian Securities Exchange (ESX).

Once established, the ESX will become the 30th exchange on the continent. At least fifty companies, including banks and insurance companies, are expected to list at the launch of the exchange. The exchange is designed to provide a fundraising platform for small and medium-size enterprises, which are the backbone of the Ethiopian economy. The exchange will also offer a platform for the privatisation of Ethiopia’s state-owned enterprises.

Ethiopia has enjoyed strong economic growth over the past two decades, averaging about 9-10%. With strong fundamentals, such as young and educated labour force and improved infrastructure, the economy has the potential to sustain such a high growth if structural challenges, such as limited access to finance, are addressed. In the past few years, the government has implemented several reforms to open the economy and the launch of a securities exchange will be a catalyst for attracting new investment from the private sector.

We are pleased to be collaborating with the Government of Ethiopia in this historic initiative that will accelerate the development of capital markets in Ethiopia. Our assistance for establishing the Ethiopian Securities Exchange will leverage FSD Africa’s vast expertise and experience in developing capital markets infrastructure across Africa. This support signals our long-term commitment to a thriving capital market that is deep, liquid, and efficient.

Mark Napier, CEO – FSD Africa.

FSD Africa continues to provide support for the development of gender bonds in the region

Posted on by Kihingu Inc

Dar es Salaam, April 28, 2022 – NMB Bank Plc has today listed its maiden gender bond on the Dar es Salaam Stock Exchange.

The NMB Jasiri gender bond is the first gender bond to list on an exchange in Africa.  The bond was 297% over-subscribed which shows great appetite for gender bond issuances and sets a new benchmark for the continent in developing financial instruments specifically targeting gender empowerment. FSD Africa is pleased to partner with NMB Bank on this novel issuance, particularly in providing technical input to develop the Social Bond Framework and the technical assistance towards the framework’s second-party opinion. FSD Africa is funded by UK aid from the UK government. The funds raised will be used to fund women-owned or women-led MSMEs in Tanzania.

Access to capital by women has long impeded equitable and inclusive economic prosperity. We are proud to support NMB Bank on the first gender bond in Sub-Saharan Africa, a ground-breaking issuance that builds on our work supporting the first gender bond issuance in Morocco. Our support affirms our long-term commitment to ensuring gender equality and economic empowerment for women.
Mark Napier, CEO – FSD Africa

BFA Global and FSD Africa create pioneering $3.3m fintech venture launcher for climate resilience in Africa

Posted on by TIMOTHYRADIER

NAIROBI, Kenya, April 22, 2022 – Today BFA Global and FSD Africa announce the creation of a first-of-its-kind venture launcher, TECA (Triggering Exponential Climate Action). The launcher will create fintech startups with solutions that enable climate resilience in the most vulnerable communities around the world, with an initial focus on Africa. With FSD Africa’s $3.3m investment over 4 years, TECA will support pioneering entrepreneurs from idea stage to launch, expanding the pipeline of investable opportunities in the fintech for climate resilience space. FSD Africa’s support will also accelerate the ecosystem around the ventures by engaging with multiple stakeholders to unlock capital, attract talent and create proof points to spur more innovation for climate resilience.

At FSD Africa, we believe that a strong, fair and accessible financial system is crucial to a sustainable future for Africa’s people and its environment. In particular we believe that finance can play a major role in tackling climate-vulnerability and that by harnessing the power of fintech innovation we can help address market barriers to building out much needed climate resilience solutions. The challenge for Africa is that this innovation is stifled by a weak ecosystem, reflected in low early-stage investment. Our partnership with BFA Global on TECA aims to address this by originating, investing in and growing a pipeline of climate resilience ventures, while helping to influence and expand the pool of investment into this space

Juliet Munro, Director, Digital Economy at FSD Africa

 

TECA will help to create pipeline at the nexus of fintech and climate resilience by backing entrepreneurs with bold ideas that build the resilience of vulnerable communities and natural ecosystems. We are looking for top talent that can push the boundaries in solving these large systemic challenges. By helping to launch new ventures responding to these emerging issues, our vision is to help create an ecosystem abundant with innovative solutions fortifying the climate resilience of vulnerable populations and the planet.”

David del Ser, Chairman and Chief Innovation Officer at BFA Global

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

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 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