Category: Press release

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

Posted on by Kihingu Inc

 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 Kihingu Inc

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 Kihingu Inc

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 Kihingu Inc

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 Kihingu Inc

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