News Type: News

Democratising insurance in Africa

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Opinion by: Elias Omondi

It is a cruel irony that Africa – the continent arguably most exposed to the risks and ravages of a changing climate and economic uncertainty – is also the continent least protected by insurance instruments. African insurance penetration drives 3% of the continent’s GDP, a figure dwarfed by the global average of around 7%, and premiums per capita are 11-fold lower than the world average.

Unprecedented ecological change, compounded by global economic instability and woefully disrupted international supply chains, demand that Africans and African businesses enjoy the basic security and protection of insurance products.  Moreover, the preponderance of small and medium-sized enterprises (SMEs) in Africa’s economic life only intensifies the need for some kind of safety net – so that already vulnerable communities are afforded a level of security to which they are surely entitled.

Though rarely cited as a fundamental bedrock for development, insurance and insurance-applicable technology are indispensable, and their importance is only growing. Indeed, the Brookings Institution characterises insurance as an “often overlooked” but nonetheless a crucial “behind-the-scenes factor driving growth at all levels of society, from family life to massive infrastructure projects to technology development”.

It is in this context that FSD Africa – the specialist development agency working to make finance work for Africa’s future – established the “BimaLab” programme in 2020. With the support of African regulators and backers such as Swiss Re Foundation, Prudential, SCBF, GIZ and FSD Ethiopia, we have developed an insurtech programme driving the development and scalability of inclusive and innovative insurance products which are tailored to address evolving African concerns and exposures.

BimaLab seeks to address – and ultimately plug – the “protection gap” predominant in Africa, cultivating the next generation of insurtech innovators through a combination of capacity building, technical assistance, funding support and help ensuring regulatory alignment and, where necessary, reform (take, for example, Ghana’s revisions of its Insurance Act to accommodate an “innovative licence category”).

Beginning three years ago with a pilot in Kenya, and then expanded to Nigeria and Ghana in 2021 and 2022, the programme has this year rolled out the accelerator programme in 10 African countries.

A cursory look at the numbers demonstrates the value this, and programmes like it, are already delivering for communities on the continent. In Kenya, Nigeria and Ghana, BimaLab-sponsored insurtechs have reached a million customers and have created 43 new insurance products and technologies. Moreover, close to 20 of BimaLab’s cohort have managed to sign strategic partnership agreements with major insurance players in the region, thereby accelerating the process of bringing new products and services to market and raising over $3m. Graduates of the BimaLab programme – CoverApp in Kenya, SosoCare in Nigeria and BeNew Insurance in Cameroon – have even won African Insuretech awards.

Bringing insurance to Africa’s SMEs

The urgency of democratising insurance in Africa derives in large part from the central role played by SMEs in the continent’s economic development. SMEs represent around 90% of all African businesses, generating 40% of the continent’s GDP and up to 80% of jobs. The resilience of these businesses, which do not enjoy the kinds of balance sheets that can withstand major disruptions unsupported, depends on our ability to create a viable and accessible insurance market.

Moreover, compounding Covid-19 and the economic chaos ensuing from the Russia-Ukraine conflict, African businesses are contending with the sharp end of climate change. Of the 10 countries most vulnerable to a changing climate, seven are located in Africa, and the sub-Saharan region contains 95% of the world’s rain-fed agriculture. Dwindling or unpredictable rainfall – as has been affecting East Africa recently – as well as rising temperatures, hurt small businesses in already impoverished communities, risking their economic collapse.

Access to insurance products has a transformative effect on the stability and resilience of African SMEs, through developing insurance products that are for once affordable and effective. Moreover, by supporting businesses at their most vulnerable, we can help cultivate the major enterprises of tomorrow, which will accelerate Africa’s development and its prominence in the global economy.

There is a widening protection gap in Africa that exposes tens of millions of people to radical unpredictability and leaves them entirely at the mercy of a rapidly changing climate and a destabilised global economy. By convening innovators, insurance companies, technology service providers, regulators and investors, we can transform insurance and the scale at which it is delivered, to communities where a basic safety net is of existential importance.

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ASEA nears uniting Africa’s stock exchanges

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The African Securities Exchanges Association (ASEA) is moving closer to linking the African capital markets by facilitating cross-border trading and free movement of investments in Africa.
Already, the African Exchanges Linkage Project(AELP) has onboarded 30 broker firms to facilitate cross-border trading.

Meanwhile, Ethiopia’s Ministry of Finance, the Ethiopian Investment Holdings and FSD Africa, has 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.

In the past few years, the Ethiopian 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.

In a joint statement, the three parties said that through the Exchange, the Government of Ethiopia will be able to finance its budget deficits by issuing long-term bonds in local currency thereby reducing reliance on inflationary and foreign sources of budget financing.

Through the cooperation agreement, FSD Africa will fund technical support, legal advice, and the costs associated with getting the exchange operational.

“The establishment of a securities exchange, the first in our nation’s history, through such a public-private partnership will usher a new era for the Ethiopian financial industry and the economy as a whole. Today’s cooperation agreement between the Ministry of Finance, EIH, and FSD Africa is a first concrete step towards realizing our vision,” said H.E Ato Ahmed Shide, Minister, Ministry of Finance.

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FSD Africa £1 million in Africa Climate Ventures

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…The investment represents the first institutional backing for the venture builder, which aims to assemble a portfolio of businesses focused on climate action across Africa, boosting continental participation in global carbon markets.

FSD Africa Investments (FSDAi) has invested £1 million in Africa Climate Ventures (ACV), a pioneering venture builder working to build a US$45 million portfolio by the end of 2024.

ACV will catalyse the carbon asset class in Africa by building innovative businesses focused on solving our generation’s greatest challenge and at the same time capturing a significant share of global carbon markets in Africa.

The venture represents a series of “firsts” in Africa: from its entirely Africa-based founder team and its permanent capital structure based in Kigali International Financial Centre, to its exclusive focus on carbon mitigation, capture and removal, the continent’s fastest evolving sector.

ACV represents a historic evolution in Africa’s carbon ecosystem and will contribute directly to capital mobilisation in climate action. Indeed, by 2030 ACV aims to eliminate one million tonnes of carbon every year while improving the lives of 50 million Africans and creating at least 5,000 jobs on the continent.

The venture builder features a peerless bench of experienced Africa-based founders with a record of pioneering innovation on the continent and championing disruptive enterprises.

James Mwangi is a 2022 Climate Breakthrough Award Winner and the founder of the Climate Action Platform for Africa, a non-profit organization that aims to help Africa achieve broad-based economic growth through climate action leadership.

James is best known as a co-founder of Dalberg Advisors, the firm’s first elected Global Managing Partner and then Dalberg Group’s Executive Director.

Mohamed Cassim is a South African investor best known as an angel investor, the Chair of MFS Africa Board, and the Founder of Abacus Advisory. CJ Fonzi was also a Partner at Dalberg Advisors, with the firm for over a decade he served as the Group Director of Innovation and then founded Dalberg’s Rwanda business in 2017.

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This team is working to build a portfolio of climate positive businesses across Africa, with the ultimate aim of launching and scaling 15 ventures in the next four years.

ACV is seeking to build this portfolio by investing to:

  1. bring proven global climate technology to Africa,
  2. accelerate and de-risk the continental expansion of technologies and business models that have gained traction in one or a few African market(s), and
  3. add carbon revenue streams to existing African businesses with the potential to scale climate positive solutions.

ACV has adopted a structure more in-line with a global north venture studio in which the vehicle is structured as a permanent capital vehicle which sells equity rather than securing fund management mandates.

This has allowed ACV to begin building ventures in parallel with fund raising, which the founders believe is paramount given the urgency of climate change, and the need for Africa to quickly establish itself as part of the solution.

There are already two ventures in the portfolio:

KOKO Networks Rwanda, a co-venture between ACV and KOKO Networks which already provides sustainable bioethanol cooking fuel to over 900,000 Kenyan families and aims to reach a million Rwandan families by 2027, and Great Carbon Valley, a Kenya based developer of direct-use clean energy applications currently focused on developing a direct air capture and permanent carbon storage site in Kenya.

ACV’s pipeline of further opportunities demonstrates the breadth and versatility of the venture builder. They range from biochar and enhanced rock weathering technologies, to biodigester and e-mobility businesses, to harvesting carbon revenue for green growth across the portfolio of a well-established continental private equity fund.

These are businesses and technologies which have the capacity to transform African economies and make a meaningful difference in climate change but they require risk capital and hands on venture builders to scale, attract further investment, and reach their potential.

FSDAi’s investment in ACV takes the form of a convertible loan of £1 million to support the venture builder’s formalisation and build additional ventures as demonstrations to attract investment from larger funds.

On top of this investment, FSD Africa will provide £75,000 in grant funding to support the development of premium carbon credits and the marketing of portfolio and pipeline companies. Moving forward, FSDAi has secured the right to invest up to £8 million in ACV’s planned 2024 close.

FSDAi is the investment arm of specialist financial development agency FSD Africa which receives funding from the UK government and provides tools and resources to drive large-scale change in financial markets and support sustainable economic development.

ACV is the latest in a series of investments by FSDAi in innovative green investment vehicles including Persistent Energy, a leader and pioneer investor in the off-grid energy and e-mobility sectors in Sub-Saharan Africa, and Nithio, which invests in renewable off-grid energy.

FSDAi has committed to support ACV on the basis that its activities will actively contribute to Africa’s transition to net-zero, the promotion and acceleration of the continent’s green sector, and the creation of quality, skilled jobs (around 600 will be created via this initial £1 million investment) in a strategically vital sector.

Ultimately, FSD Africa believes that ACV can help the continent’s businesses participate in global carbon markets and capitalise on the continent’s unrivalled capacity for profitable climate-smart businesses.

Moreover, FSDAi’s investment aligns with the emerging priorities of African policymakers who will gather in Kenya in September at the Africa Climate Summit to co-ordinate a unified, collective pan-African approach to the discussions at the next COP in Dubai.

Anne-Marie Chidzero, CIO of FSD Africa Investments, said:

“In backing the ACV partners, FSDAi sees a tremendous opportunity to galvanise global investment and finance to promote Africa’s status as the pre-eminent climate investment destination.’’

James Mwangi, CEO of Africa Climate Ventures, said: “We are thrilled that FSDAi has joined us in building ACV.  The involvement of FSDAi has already been invaluable in refining the ACV model. As we work towards ambitious objectives, we believe FSDAi will be a key partner in ensuring our success.”

Rachel Turner, Director, International Finance, Foreign, Commonwealth & Development Office, said:

“We are excited to be supporting this enterprising partnership between FSD Africa and ACV. The need to mobilise climate finance for Africa has never been greater, and this can’t happen without innovations that can build the pipeline of opportunities to absorb and deploy capital into productive, sustainable and inclusive uses. Tapping into the developing carbon market ecosystem represents a significant opportunity for Africa to raise capital at affordable terms whilst contributing directly to the climate challenge. This partnership with an impressive African team is pioneering in its approach.”

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Green technology fund raises Sh171 million from FSD Africa

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Venture fund startup Africa Climate Ventures (ACV) has raised £1 million (Sh171.1 million) for investing in companies focused on environment-friendly projects in the continent.

The capital raised from FSD Africa Investments (FSDAi) is in the form of a convertible loan to support the venture builder’s formalisation and develop its capacity to attract investments from larger funds.

ACV is working to build a $45 million (Sh6.2 billion) portfolio by the end of 2024.

“We are thrilled that FSDAi has joined us in building ACV, and has already been invaluable in refining the ACV model,” said ACV chief executive and founder James Mwangi who is best known as a co-founder of Dalberg Advisors, the firm’s first elected global managing partner and then Dalberg Group’s executive director.

FSDAi is the investing arm of FSD Africa, a UK International Development-funded regional programme operating in more than 30 countries from its Kenya base.

On top of the capital investment in ACV, FSD Africa will provide £75,000 in grant funding to support the development of premium carbon credits and the marketing of portfolio and pipeline companies.

Moving forward, FSDAi has secured the right to invest up to £8 million in ACV’s planned 2024 close.

The venture builder’s team is working to build a portfolio of climate-positive businesses across Africa, with the ultimate aim of launching and scaling 15 ventures in the next four years.

ACV is seeking to build this portfolio by investing to add carbon revenue streams to existing African businesses, bring proven global climate technology to Africa and accelerate and de-risk the continental expansion of technologies and business models.

ACV is the latest in a series of investments by FSDAi in innovative green investment vehicles including Persistent Energy — a pioneer investor in the off-grid energy and e-mobility sectors in sub-Saharan Africa— and Nithio, which invests in renewable off-grid energy.

“In backing the ACV partners, FSDAi sees a tremendous opportunity to galvanise global investment and finance to promote Africa’s status as the pre-eminent climate investment destination,” said Anne-Marie Chidzero, the chief investment officer at FSDAi.

Ultimately, FSD Africa believes that ACV can help the continent’s businesses participate in global carbon markets and capitalise on the continent’s unrivalled capacity for profitable climate-smart businesses.

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Africa Climate Ventures Raises Ksh.171M To Support Green Tech Start-Ups

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Africa Climate Ventures (ACV), a venture capital firm focused on climate action start-ups on the continent, has announced a Ksh.171 million (£1 million) investment from FSD Africa Investments.

The investment is in the form of a convertible loan to support ACV’s formalisation and build additional ventures as demonstrations to attract investment from larger funds.

On top of the investment, FSD Africa said it will provide Ksh.13 million (£75,000) in grant funding to support the development of premium carbon credits and the marketing of portfolio and pipeline companies.

ACV seeks to build a portfolio of climate-positive start-ups across Africa, with the ultimate aim of launching and scaling 15 ventures in the next four years.

Moving forward, FSD Africa has secured the right to invest up to Ksh.1.4 billion (£8 million) in ACV’s planned 2024 close.

“The involvement of FSDAi has already been invaluable in refining the ACV model. As we work towards ambitious objectives, we believe FSDAi will be a key partner in ensuring our success,” James Mwangi, the ACV CEO, said.

Mwangi said they aim to eliminate one million tonnes of carbon every year by 2030, while improving the lives of 50 million Africans and creating at least 5,000 jobs on the continent.

The VC firm already has two ventures in its portfolio; KOKO Networks Rwanda, a co-venture between ACV and KOKO Networks which provides sustainable bioethanol cooking fuel in Kenya and Rwanda, and Great Carbon Valley, a Kenya-based developer of direct-use clean energy applications.

“In backing the ACV partners, FSDAi sees a tremendous opportunity to galvanise global investment and finance to promote Africa’s status as the pre-eminent climate investment destination,’’ Anne-Marie Chidzero, CIO of FSD Africa Investments, said.

FSD Africa receives funding from the UK government and provides tools and resources to drive large-scale change in financial markets and support sustainable economic development.

There has been increased interest in green technology ventures as the world seeks to reduce carbon emissions and transition to green energy.

Just last week, Kenya-based climate tech start-up Amini announced the closure of a Ksh.275 million ($2 million) pre-seed funding round led by Swedish climate tech-focused venture capital firm Pale Blue Dot.

Amini uses artificial intelligence and satellite technology to create data infrastructure and address climate data scarcity in Africa.

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Lab announces new class of ground-breaking solutions to drive public and private investment in emerging markets

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LONDON – Members of the Global Innovation Lab for Climate Finance (the Lab) gathered in London to select the innovative climate finance solutions that will be accelerated in 2023. Lab members voted to choose six new models to channel investments in challenging sectors such as climate adaptation and gender equality.

“We are thrilled about the quality and breadth of the types of innovative financial solutions that we see in this new Lab cycle. It’s fantastic that our members continue to help the Lab expand our boundaries, focusing more on where we can have the highest impact on the ground,” said Dr. Barbara Buchner, Global Managing Director of Climate Policy Initiative.

The Lab is an investor-led initiative that identifies, develops, and launches promising solutions to drive critical public and private investment in climate change in developing economies. Each year, the Lab competition selects promising, early-stage ideas for sustainable investment and rapidly develops these ideas into fundable, scalable investment vehicles and business models.

“This year, we were excited to introduce a Gender Equality stream and expand our Africa program,” said Lab Associate Director Ben Broché. “We need to see a rapid scale-up of investment across sectors, and the Lab is always keen to take on new challenges: since we launched nine years ago, the Lab has developed 62 solutions that have mobilized USD 3.5 billion for climate action in emerging markets.”

In 2023, the Lab received around 150 applications from leading asset managers, development finance institutions, global NGOs, prominent project developers, financial services firms, and entrepreneurs. The winners will undergo seven months of analysis, stress-testing, development, and preparation for launch later this year.

2023 LAB WINNERS

Catalyst Climate Resilience Fund supports pre-seed climate adaptation startups that improve the resilience of vulnerable African communities, fostering a more robust ecosystem of climate adaptation innovations. Catalyst Fund and BFA Global, an innovation consulting firm headquartered in Kenya, spearhead the idea

Climate Resilient Landscape Finance (CRLF) is a first-of-its-kind model where financiers, conservancy management, and landowners collectively share the risks and rewards of sustainable land management activities. The proponent is Platcorp, an established microlender and asset manager in Eastern and Southern Africa.

Impact Financing Facility for Climate-Focused Social Enterprises offers blended finance instruments to support social enterprises adopting climate-smart technologies and establishing a track record to access commercial capital. The idea proponent is Villgro, an Indian social enterprise incubator.

Lendable Emerging Market Sustainability-Linked Loan Fund provides loans to SMEs for implementing climate solutions. Borrowers who reach targets get lower interest, and the fund earns carbon credits. Proponent Lendable offers financing solutions for companies with a positive impact.

Social Infra Ventures (SIV) is a pan-African rental platform to service low and lower-middle-income families and vulnerable groups in Africa’s secondary cities designed around women’s needs. SIV will partner up with Cardano Development to pilot the idea in Morocco.

The VOX VERT Land Use Transition Fund finances the transition to sustainable agriculture in the Brazilian Amazon and Cerrado regions through a private credit fund with a blended finance structure. The proponents are Vert, a securitization company, and Vox Capital, an impact investment house.

Lab Members’ Quotes

Ajibola Olalowo, Advisor, German Federal Ministry of Economic Affairs and Climate Action (BMWK), said: “The Lab has been successful in delivering impact over almost one decade. Investments in Lab ideas span the globe, including challenging sectors such as climate risk, nature-based solutions, sustainable cities, and gender equality. However, there is still work to be done in mobilizing private finance for climate action, and Lab’s ideas are crucial for strengthening private sector investments to keep 1.5° alive.”

Antha Williams, who leads Bloomberg Philanthropies’ environment program, said: “Innovative financial solutions that address the climate crisis are pivotal to transitioning to a low-carbon economy at the speed and scale necessary. The Global Innovation Lab for Climate Finance’s innovative approach helps identify, develop, and scale pioneering financial instruments that are making a tangible impact in combating climate change. Bloomberg Philanthropies is delighted to support the India Lab to help transform promising ideas into viable investment opportunities that drive climate action in India.”

Sumaiya Sajjad, Head of the Technical Assistance Facility, FinDev Canada, said: “FinDev Canada is committed to advancing opportunities in the gender and climate nexus area through our investments and partnerships, which includes our support to the Lab. Women are disproportionately affected by climate change despite being at the forefront of adopting climate-smart solutions. The Lab is well positioned to support innovative solutions with an intentional gender approach and to capitalize on the growing momentum across the investment landscape to increase gender-responsive climate finance offerings.”

Nine additional ideas made it to the finalist stage

  • Altree Kadzi Gender Climate Fund, Altree Capital
  • Climate Agriculture Debt Restructuring Facility (CADRF), Abt Associates
  • Food&Forest, Impact Bank Amazônia Securitizadora de Créditos S/A
  • Gender-Based Smallholder Economic Liberation Project, Prado Power Limited
  • Green India Fund, Green Artha
  • Infrastructure Climate Resilient Fund (ICRF), AFC Capital Partners
  • Mobilize: De-risking E-mobility, VAI Capital
  • Offgrid Finance Pop-up SPV, Offgrid.finance Limited

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Ethiopian Securities Exchange Invites Investors to Become Stakeholders

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The Ethiopian Securities Exchange has started its Capital Roadshow aiming to attract actors in the financial sector into buying shares and becoming stakeholders of ESX. It also announced that it would commence issuing licenses to capital brokers, dealers, and advisors in September this year.

Foreign and domestic investors can purchase 75% of the shares of ESX while the rest of the ownership goes to the Ethiopian Government through Ethiopian Investment Holdings. It is expected that ESX will become fully operational as of January next year.

It is to be recalled that the National Bank of Ethiopia (NBE) announced in May 2022 that three well known global companies were desirous to participate in ESX. Financial Deepening Africa (FSD Africa) has already signed an agreement to become a shareholder in the securities exchange. According to NBE, IFC has also shown an interest to participate in the securities exchange.

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Holland firm to offer corporate debt guarantees

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Holland-based fund manager Cardano Development has announced plans to establish a corporate debt guarantee company in Kenya to help firms raise funds from the capital markets.

The credit guarantee company set to be operational by year-end seeks to offer up to a 100 percent guarantee covering debt interest and principal for local currency capital market senior debt in the green (environmentally friendly) space.

Investors in Kenya’s corporate bonds have been relying on insurers to cover the risk of default by issuers while others take no protection, betting on borrowers to service their obligations as they fall due.

Kenya’s nascent debt guarantee space has mostly focused on bank loans, especially lending to small and medium-sized companies.

Cardano’s entry comes after it launched similar firms in Nigeria and Pakistan, targeting broad sectors including public and private infrastructure, financials such as saccos and corporates mostly in the form of commercial paper.

“About a year ago we decided to engage together with InfraCo Africa, to jointly develop with the assistance of FSD Africa a Kenyan guarantor which we hope will be operational by the end of this year,” said Cardano Development chief executive Joost Zuidberg.

InfraCo Africa is a European fund while FSD Africa is a research and advocacy firm specialising in the financial sector.

The yet-to-be-named firm has raised Sh6 billion in capital provided by eight founding providers including four international development finance institutions (DFIs) and four local private investors.

Aside from Kenya, the guarantee company will cover Uganda, Tanzania, Rwanda and Zambia, aiming to reach a guaranteed portfolio of Sh50 billion within five years.

Its value proposition is in better pricing, scale and superior products owing to the fact that it will be a locally-based company empowering domestic savings.

“It is a private sector institution with ultimately the aim to completely become local, presumably even be listed in the stock exchange,” said Mr Zuidberg.

He made the remarks during a roundtable by FSD Africa themed on mobilising long-term capital for sustainable development in Kenya.

FSD Africa has provided financial and technical support in establishing guarantee companies including developing business plans, engaging with institutional investors in the market and advising on the regulatory environment.

Kenya requires $61.7 billion to meet its global commitment to climate change by 2030 with the country’s annual infrastructure financing gap currently standing at $1.8 billion.

“There is a need for risk sharing and innovation in order to enable the private sector to play its rightful role and mobilise financing at a scale that is required for Kenya’s various needs,” said FSD Africa chief executive Mark Napier.

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FMDQ Group, FSD Africa help bridge gender finance gap in Africa

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FMDQ Group Plc and Financial Sector Deepening (FSD) Africa – the Implementing Partners of the Nigerian Green Bond Market Development Programme (the Programme) – organised a two-day event in Lagos, to introduce the concept of gender bonds to key market players within the Nigeria financial markets space. The event examined the state of gender equality in Nigeria and discussed the opportunities for Nigerian issuers and investors to use gender-sensitive/intentional approaches in bridging the gender finance gap in Nigeria. Also, it afforded potential issuers an opportunity to learn from the Tanzanian experience in navigating the issuance process of a gender bond.

External shocks such as pandemics, climatic disruptions, and economic downturns, have continuously had adverse impacts on humanity, with vulnerable groups, such as women, and their businesses being badly hit. Consequently, financial market players globally, as well as in Africa, are now empowering women and expanding their access to finance and economic inclusion through a debt market instrument that seeks to support the advancement and equality of women – the gender bond. Although at its emerging stage, understanding the gender bond framework for Nigeria’s debt market can play a crucial role in supporting the efforts to attain the United Nations (UN)’s 2030 Sustainable Development Goals (SDGs) 5 and 10 – Gender Equality and Reduced Inequalities, respectively.

In attendance at the event were Ben Llewellyn-Jones OBE, Deputy High Commissioner, British Deputy High Commission, Lagos, Beatrice Eyong, United Nations Women Country Representative to Nigeria, Bola Onadele. Koko, Chief Executive Officer, FMDQ Group Plc, Ruth Zaipuna, Chief Executive Officer, NMB Bank Plc, Mary Njuguna, Principal Specialist, Capital Markets, FSD Africa, as well as other market stakeholders.

The first day featured a Breakfast Session for C-Suite Executives and highlighted the impact sustainable finance can have in driving women’s economic empowerment, as well as increased participants’ knowledge and awareness of gender bonds.
Welcoming participants to the event, Bola Onadele. Koko, Chief Executive Officer, of FMDQ Group Plc gave a broad overview of the Programme’s achievements from its inception in 2018 till date in the areas of policy advisory, technical support for green bond issuances, and market capacity building. He challenged everyone within their individual areas of expertise to be encouraged by the progress of the Programme as it relates to green bonds and similarly, push the envelope with gender bonds as we continue to develop and entrench the principles of sustainability in the Nigerian capital markets whilst facilitating prosperity for all.

The Breakfast Session featured a panel discussion themed, “The Role of Financial Markets in Strengthening Gender Financing in Nigeria”, with panellists including the Chief Executive Officer of NMB Bank Plc of Tanzania, a representative of British International Investment PLC, an Associate Director of PwC Nigeria, a representative of FMDQ Securities Exchange Limited, a Deputy Director of the Securities and Exchange Commission, Nigeria, and the Gender Network Manager, FSD Africa.

The panellists established the business case for investing in women-owned/led businesses, women-focused initiatives and the urgency for closing the $ 42 billion gender financing gap in Africa. Also, the panellists reiterated the importance of leveraging sustainable and innovative financial instruments such as gender bonds in financing women-owned/led businesses.

The second day presented a Masterclass which featured a deep dive into the modalities surrounding the issuance of NMB Bank Plc’s first gender bond in Tanzania (Jasiri Bond). The Treasurer of NMB Bank Plc, during his session, stirred the zeal of potential issuers to the impact of women empowerment through a gender bond as he shared the stories of the beneficiaries of the NMB Bank Plc’s Jasiri Bond.

According to Sustainalytics, a global leader in Environmental, Social and Governance (ESG) research, and a technical partner for the gender bond awareness sessions, the key steps required for a gender bond issuance include the development of a framework, disclosure of information to an external reviewer, documentation of a second opinion, development of a pre-issuance report, and annual documentation of the impact of the gender bond.

The event ended with the Implementing Partners of the Programme reiterating their commitment to support institutions willing to bridge the gender finance gap, as well as other sustainable financing gaps in Nigeria, through financial instruments like sustainable or sustainability-linked bonds that is, gender bonds, green bonds, blue bonds, social bonds, and others. The Programme was launched in 2018 to create awareness and education on green finance, whilst serving as the primary vehicle to explore and implement initiatives geared towards accelerating the development of the Nigerian Green Bond Market and supporting broader debt market reforms that impact green bonds, through its Implementing Partners, FMDQ Group and FSD Africa.

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