Category: Press release

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.

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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

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 31^st July 2021.

The partnership aims to accelerate the uptake of green bonds by SADC member countries to finance sustainable green projects

NAIROBI, March 11, 2021 – FSD Africa  has today signed a Co-operation Agreement with the Committee of SADC stock Exchanges (CoSSE) to support the development of a green bond market in the SADC region. The agreement will support the SADC’s 16 member countries to leverage domestic and international capital markets for investment in green projects.

The FSD Africa-CoSSE partnership programme will support member countries and both private and public sectors to issue green bonds, creating a favourable ecosystem and improving knowledge and capacity for sustainable investments.The programme will also help SADC countries to develop listing guidelines and regulations for green bonds, build a pipeline of potential green bonds issuers, tap the countries’ institutional investment community for investment into green bonds, train stakeholders on climate finance and suhe adoption of climate-related financial reporting and disclosure

 

Mark Napier, CEO, FSD Africa, said:</stron”In recent years SADC countries have experienced extreme climate-related challenges including drought and cyclones. Green bonds can be an excellent way to channel SADC significant capital resources into job-creating projects that can help pivot the region towards a low-carbon economy and protect it from environmental shoc”

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FSD Africa is providing technical assistance for the development and promotion of the Islamic capital market framework for the region. The project is spearheaded by Conseil Régional de l’Epargne Publique et des Marchés (CREPMF).

Wednesday, January 20, 2021: FSD Africa, in partnership with Conseil Régional de l’Epargne Publique et des Marchés, is developing a regulatory framework that will help to establish an Islamic capital market in the WAMU region comprising Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo.

The proposed new Islamic capital markets would work to spur growth in the region and increase financing of the Union’s economies.

FSD Africa’s support comes as part of its ongoing programme to strengthen Africa’s capital markets. The programme is centred on the development of capital markets master plans, conducting institutional capacity assessments, and creating capacity for sustainable finance such as green bomarkets to adapt to their operating climate.

“We must ensure that financial systems are as relevant as possible to their local operating context. We look forward to working with local stakeholders to understand the needs of the capital market ecosystem in the region as we implement this ambitious programme – a first for the region. Islamic finance will not only foster inclusive finance amongst a vast majority of the population in the West African Monetary Union but will also unlock significant growth-inducing capital from market participants keen on ethical investing.”

Evans Osano, Director Capital Markets

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