News Type: Press release

FSD Africa Investments invests US$4.5m in Nithio FI, to support the scale up of off-grid energy access in African markets

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FSD Africa’s funding contributes to Nithio FI’s first raise of US$23 million to scale off-grid energy financing in Kenya, Nigeria, and Uganda.

Tuesday, June 22, 2021: FSD Africa Investments (FSDAi), the investing arm of FSD Africa, has today invested US$4.5m in Nithio FI, a renewable energy financing intermediary focused on the Pay as You Go (PAYG) off-grid solar sector, to provide reliable and sustainable renewable energy solutions for households and small businesses in Kenya, Nigeria, and Uganda

Nithio Holdings is an AI-enabled energy financing platform whose mission is to standardize credit risk assessments and therefore drive more capital to the sector, including by investing directly and efficiently in off-grid solar companies. Over the next five years, Nithio FI aims to provide financing to more than 224,000 energy access products across the continent, including solar home systems (SHS) and productive use appliances.

Despite the increasing interest in Africa’s off-grid solar offerings, GOGLA’s statistics reveal that investment in the sector has stalled over the last five years. In addition, nearly 600 million people across the continent are still expected to be without electricity in 2030 unless there is significant progress in scaling up financing access.

“Innovation must play a central role in closing the power gap in Africa. By leveraging the technical and analytical capabilities of Nithio, we are ensuring that those communities who are most at need are provided priority access to renewable electricity. With renewable energy emitting the least greenhouse gases and air pollutants, both the planet and our health will benefit from the investment in greener power sources.”
Anne-Marie Chidzero, Chief Investment Officer, FSD Africa Investments

FSD Africa reinforces commitment to the climate agenda through partnership to develop a green bond market in the Southern Africa Development Community

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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

James Duddridge, UK Minister for Africa, said:

“Climate change is the most important challenge facing future generations and ahead of COP26, our partnerships with African nations are building resilience and driving clean growth. This landmark agreement will increase access to green finance, create jobs and help support a sustainable recovery from COVID-19 to deliver for those on the forefront of the climate crisis and our planet”.

 

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 partnership aims to safeguard and leverage investment for small and medium-sized African businesses through the Africa Private Equity and Private Debt Programme

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The four co-operation agreements signed between FSD Africa and the African Private Equity and Venture Capital Association (AVCA) and East Africa Private Equity and Venture Capital Association (EAVCA) and Southern Africa Venture Capital and Private Equity Association (SAVCA) and the Private Equity and Venture Capital Association Nigeria (PEVCA) will help to ensure local expertise and tailored delivery for regional and country mandates.

NAIROBI, 24 February, 2021: FSD Africa today announces the signing of co-operation agreements with AVCA, EAVCA, SAVCA and PEVCA to coincide with the launch of the Africa Private Equity and Private Debt Programme. The programme is a new initiative to support the development of private capital markets in Africa as a complement to public capital markets. It will work to improve the long-term financing options available for businesses across key sectors in Africa’s economy, including healthcare, climate and agriculture.

 

Access to long-term finance has continued to be a challenge for small and medium-sized businesses across the continent. The economic impact of COVID-19 has only exacerbated the strain on Africa’s formal public markets aiming to provide long-term finance options to businesses desperately in need of capital. This alongside increased risk averseness by lending institutions has left few options for SMEs to access long term financing, in many cases resulting in business closures and job losses.

 

Through the Africa Private Equity and Private Debt Programme FSD Africa aims to leverage various tools including grants, technical assistance, advocacy and investment capital to support the growth of private capital markets. The partnership aims to support growth in a way that is uniquely African in character, tailored to the local context and delivering long term financing options for SMEs.

“Supporting the development of private equity and private debt markets in Africa will provide a boost to small and medium-sized businesses and local economies. We believe this will be greatly welcomed in the short term, ensuring that more jobs are saved, but it will also provide long-term benefits and improve access to capital.  Globally, there has been a secular shift towards private capital markets and it is appropriate that, as part of our response to COVID-19, we pay enough attention to the development of private markets, allowing for more local capital to be channelled into essential sectors including health, agriculture and climate.”
Mark Napier, CEO

FSD Africa announces development of landmark Islamic capital market framework for the West African Monetary Union

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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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Nigeria’s Securities and Exchange Commission commences plan to strengthen capital markets in partnership with FSD Africa

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SEC Nigeria, with the support of FSD Africa, begins a review of Nigeria’s 10-year Capital Markets Master Plan to better align it with the current economic climate.

ABUJA, Nigeria, December 17, 2020: The Securities and Exchange Commission, Nigeria (SEC Nigeria) and FSD Africa have today announced the start of a joint review of Nigeria’s 10-year Capital Markets Master Plan (CMMP) to support the country’s economic resilience amid new economic challenges including lower oil prices and the COVID-19 pandemic.

The review of the CMMP will see SEC Nigeria work with FSD Africa’s Regulator Support Programme to develop a revised 10-year CMMP that will strengthen Nigeria’s capital markets’ and their capacity for capital mobilization. The CMMP provides a vision for Nigeria’s capital market, as well as a roadmap with objectives to meet it.

The process will involve an assessment of progress made since the plan’s implementation to date and engaging with stakeholders for input. Thisthe introduction of more stringent tools to measure the plans progress against objectives, and the inclusion of new challenges, opportunities and risks related to the current environment into the plan.

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FSD Africa Investments commits $4.5 million to a new fund supporting MSMEs through pandemic recovery

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The investment will strengthen debt facilities by Lendable Inc. while offering increased security to micro, small and medium enterprises recovering from the pandemic

NAIROBI, December 15, 2020 – FSD Africa Investments (FSDAi), the investment arm of FSD Africa, has today announced a $4.5million commitment to Funds set up by Lendable Inc. (Lendable). This will boost the capacity of alternative financial service providers in sub-Saharan Africa to provide credit to micro, small and medium enterprises (MSMEs) recovering from the effects of the pandemic.

Lendable is a fintech startup which provides structured finance to alterative lenders in frontier and emerging markets. By providing funds to support the lending capacity of alterative financial service providers, these providers will, in turn, provide much needed capital to MSMEs. This is at a time when MSMEs need help in fuelling their recovery from the effects of the pandemic – and when credit from other sources may be difficult tise.

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Innovative partnership will improve efficiency of Nigeria’s capital markets

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FSD Africa and SEC Nigeria sign agreement to support digital transformation at the government agency through the modernization and transformation of its information and communication technology (ICT) systems.

Abuja, Nigeria, October 27, 2020: Financial Sector Deepening (FSD) Africa and the Securities and Exchange Commission, Nigeria (SEC Nigeria) have today signed a co-operation agreement that will see FSD Africa provide technical assistance to support SEC Nigeria’s digital transformation and its capacity to regulate and develop Nigeria’s capital markets.

The transformation will see SEC Nigeria’s ICT infrastructure updated to international best practice, helping to improve its ability to serve the Nigerian capital markets. Given the current working climate, this will also ease the transition to remote working as necessitated by COVID-19.

The partnership with FSD Africa will enable SEC Nigeria to serve capital market participants more efficiently through the digitization of mfacing regulatory services like e-filings and e-prospectuses. It will also improve the operational efficiency, information security and transparency of the regulator, while allowing it to develop data-driven interventions to improve Nigeria’s capital markets in line with current and future market needs

Landmark fund launched to help protect textile industry jobs in Ethiopia as COVID-19 slows manufacturing demand

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The fund is an international collaboration between the UK, Germany and Ethiopia that will protect some of Ethiopia’s most vulnerable workers

Addis Ababa, 29 October 2020: A landmark fund set up between the UK and Germany in collaboration with the Government of Ethiopia could save thousands of jobs in Ethiopia’s textile and garments industry, while helping to support the country’s economic recovery from COVID-19. With $6.5 million invested at launch, the partnership aims to help safeguard a critical industry and protect the livelihoods of those working within it.

Through the fund, textile factories in Ethiopia’s industrial parks can apply for wage subsidies – similar to the furlough schemes operating in many countries including the UK and Germany – and incentives to reward businesses that are able to adapt in response to COVID-19. The funding announced today will kickstart the facility and the partnership may further expand its reach through additional support in the com

Our support forms part of the work FSD Africa is doing in financial markets across Africa to build resilience and help drive the economic recovery from COVID-19. This fund brings together UK and German funding and technical expertise to deliver real benefits for vulnerable households and ensure that Ethiopia’s patient efforts to build manufacturing capacity over many years are preserved

Mark Napier, CEO, FSD Africa

Further details about the facility can be found on the website here.

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Launch of the financial inclusion for refugees (FI4R) project in Uganda

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Research set to inform the delivery of financial services for refugees

Kampala, March 17, 2020 – Working with local service providers (FSPs) in Uganda, we have collaborated with FSD Uganda and BFA Global to launch a landmark study with the aim of understanding the different sources of income for refugees, the uses of their finances and the financial products and services they use and supporting the development of financial products and services offered by Equity Bank Uganda Limited (EBUL), Vision Fund Uganda (VFU) and Rural Finance Initiative (RUFI) and evaluating the impact of those products and services on refugee livelihoods.,

FSD Africa Investments announces USD$3.2 million in new investments to strengthen African financial markets

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The investments will enhance the domestic banking sector, and make it cheaper and easier for African consumers to transact globally 

London, 20 January 2020 – At the UK-Africa Investment Summit, FSD Africa Investments has today announced USD$3.2 million in investments into MFS Africa and Frontclear, two leading companies transforming Africa’s financial sector.