Pillar: Adaptation and Resilience

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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Regulations for insurance sandbox to deepen innovation, financial inclusion in Nigeria

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May 17th, 2023, Lagos – In a strategic move to deepen insurance penetration and financial inclusion through innovation in Nigeria, the National Insurance Commission (NAICOM) has released the insurance regulatory sandbox operational guidelines.

The guidelines are designed to determine insurance solicitation or distribution within the insurance value chain, facilitate insurance products; underwriting; policy & claims servicing, etc., before making them public.

The Insurance Regulatory Sandbox Operational Guidelines include Market Conduct Guidelines for Takaful and Retakaful Insurance Operators and Enterprise Risk Management Framework for Takaful and Retakaful Operators in Nigeria.

Takaful Insurance is generally based on the concept that the negative impact of a specific incident is distributed among a group of persons instead of making the person who experienced the loss bear its results alone. The means to achieve this is to establish a common fund to which everyone exposed to a specific risk may contribute in such a way that indemnity will be paid from that fund.

Retakaful is the Islamic alternative to conventional reinsurance and operates on Shariah principles. It is a way for a primary insurer to protect against unforeseen or extraordinary losses.

FSD Africa supported by the UK government has been providing technical support to NAICOM to enhance its ability to fulfill its development, regulation, and supervision mandate to support market development, market stability promoting innovation, and protection of policyholders in line with international standards.

The launch of the regulatory sandbox is part of the NAICOM’s strategic objective to drive innovation of products and services, and ensure operators are professional in the conduct of their businesses and in line with best practices.

Commenting on the launch of the regulatory sandbox:

British Deputy High Commissioner in Lagos, Ben Llewellyn-Jones said:

“Insurance remains a critical tool in building the resilience of businesses, livelihoods, and households globally. With the persistence of climate risks / disasters and fluctuating economic realities in Nigeria, it is more important for the insurance industry to leverage innovation to develop more contextualised products and services that would mitigate the risks for Nigerians and their businesses.

“The UK government is keen to see this innovation delivered in consultation with the insurance industry and regulators to maximise the usefulness and impact of this tool.”

Director, Risk and Resilience, FSD Africa, Kelvin Massingham said:

“It is vital for NAICOM to balance the need to facilitate and promote innovation with the protection of consumers and the adequate management of the risks that may arise. Support on market development focusing on regulating for innovation, will establish an environment that responds to innovation and market changes on an ongoing basis by building internal capacity, instruments and re-shaping their engagement with the private sector to foster a culture of innovation, learning and testing innovations.”

Another guideline released last week by NAICOM was the Enterprise Risk Management (ERM) Framework which is intended to establish minimum Risk Management Standards for Takaful Insurance Operators (TIOs) in Nigeria.

Under this guideline, all Takaful Insurance undertaking will henceforth establish and maintain a sound ERM Framework to support the adequacy of its solvency and comply with all relevant Sharia rules and principles.

This framework is expected to be “comprehensive in nature, dealing with all reasonably foreseeable and relevant material risks of the funds making up the Takaful Undertaking, and shall be formalized through a set of policies, consistently applied, the TIO’s approach to determining the appetite for risk, its process for managing risks and its Governance related to risk.

South African insurance stakeholders commit to sustainable insurance and building a resilient economy

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May 12th, 2023, JOHANNESBURG – South African insurance stakeholders have stressed the importance of all businesses across Africa in engaging with the net-zero ambitions, agreeing that by playing its role, the insurance industry will be critical in building a sustainable environment for the future.

FSD Africa and the Financial Sector Conduct Authority (FSCA) held a C-Suite breakfast session with CEOs of South Africa’s Insurance Industry and Regulators with a call to action to commit to the Nairobi Declaration on Sustainable Insurance as a first step toward creating a sustainable insurance industry and building resilience for the continent.

The event was an opportunity to cover the risks, challenges and opportunities facing the South African insurance industry in adapting to and mitigating climate change and responding to broader sustainability objectives. The session highlighted key considerations for South African insurance market players to enhance the resilience of the South African economy and have a responsive sector primed for contributing toward a more sustainable future. It is estimated that South Africa holds 70% of the African insurance industry’s market premiums1. As investors and stewards of significant financial resources, the sector must consider the role they play on the continent in driving sustainability objectives.

Formally launched in April 2021, the Nairobi Declaration on Sustainable Insurance (NDSI) is a declaration of commitment by African insurance industry leaders to support the achievement of the UN Sustainable Development Goals (SDGs). The Declaration was first unveiled in Nairobi, Kenya, at the UN Environment Programme’s Principles for Sustainable Insurance (PSI) initiative 4th Africa summit – hosted by ICEA LION Group as a founding signatory – and momentum continues to build.

With backing from more than ten inaugural signatories, the Declaration brings together senior leaders to accelerate solutions to a set of major sustainability challenges – ranging from climate change and ecosystem degradation to poverty and social inequality – that have assumed even greater urgency in a post-Covid-19 world. Currently, 102 organisations across the continent have signed up to the declaration.

Since its launch, FSD Africa has supported the Declaration through a series of events and thought leadership engagements as it encourages more institutions to sign up. The first in a series of planned C-Suite meetings was hosted in Lagos, Nigeria, in March 2022 by UNEP, FSD Africa and the National Insurance Commission (NAICOM) of Nigeria. Other C-Suite events have been held in Cairo, Egypt, Nairobi, Kenya and Addis Ababa, Ethiopia.

Speaking during the event, Kelvin Massingham, Director, Risk and Resilience, FSD Africa said: “Mainstreaming resilience into Africa’s economic development is essential to secure future prosperity and sustainable growth. Now is the time for the African insurance sector to play the significant role it should in creating this resilience. The Nairobi Declaration on Sustainable Insurance’s proactive and market-based approach is exactly what we need, and the commitment today is a strong statement to work together towards an African-led solution.”

Unathi Kamlana, Commissioner, Financial Sector Conduct Authority said” The financial sector is fundamental as an allocator of capital within an economy. We will continue working collaboratively with stakeholders, in South Africa and more broadly, to ensure that our sector is efficiently and effectively able to intermediate and direct capital flows in support of sustainable outcomes, while appropriately pricing for risks and promoting investor confidence.”

Anthony Phillipson, British High Commissioner to South Africa, said: “The financial sector has a key role to play in delivering our climate commitments. I am happy to see that sustainable finance is fast becoming a cornerstone of our UK-South Africa green partnership. I particularly welcome collaboration to strengthen capacities and embed sustainable practices across the insurance and pension industries in South Africa.”

Swiss Firm Partners With Local Insurers To Build Low – Cost Health Products For Local Communities

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NAIROBI, Kenya, April 27 – Swiss Capacity Building Facility (SCBF) and APA Insurance have partnered with a consortium of local insurance innovators to provide affordable primary healthcare insurance solutions to under-served Kenyans.

The innovators include Paa Insurance Agency; an inclusive insurance distribution specialist, Emerging Markets; a research and design consultancy firm, Ilara Health; a network of primary healthcare facilities and Democrance; a SaaS plug-and-play insurance technology provider.

The partners have developed an innovative solution designed with a hybrid model of capitation costs, and in-patient benefit for patients who become hospitalised.

“We are proud to launch this innovative initiative which will see thousands of under-served households in rural and peri-urban Kenya have access to sustainable primary health care financing solutions to protect their families against out-of-pocket expenses that could otherwise force them into poverty,” said Dana Ellis, Senior Operations Manager at SCBF.

The technical assistance funding from SCBF will contribute to strengthening financial inclusion and increasing resilience against primary healthcare costs for under-served communities in Kenya, intending to reach at least 50 per cent of women.

This is aligned to the Government of Kenya’s 2030 financial inclusion strategy to ensure that no person in Kenya is left out of reach of financial services, to increase their resilience against risks beyond their control, while also improving their access to essential healthcare services.

Speaking at the launch of the project , APA Group CEO Ashok Shah noted that, “it is important for insurers to think beyond offering insurance to the affluent customer segment.”

He emphasised that the future of insurance lies in tapping into the majority of the population which remains uninsured.

APA has been at the forefront of supporting inclusive insurance solutions targeting the middle and lower base of the economic pyramid, and shall continue to do so with this initiative, to create social and sustainable impact within the communities.

The demand for new innovative insurance solutions, over the last few years, has seen an emergence of insurtechs (insurance innovators who use technology to create and improve insurance solutions) and simplified customer experiences facilitating the purchase, service and making of claims without the barriers associated with mainstream insurance.

This proliferation has particularly been fueled by the regulator-backed programme, BimaLab, in partnership with Financial Sector Deepening Africa (FSD Africa).

BimaLab is an accelerator program that supports early insurtech innovators to develop innovative insurance solutions.

Elias Omondi, Senior Manager Risk Regulation at FSD Africa, who inspired the birth of BimaLab remarked, “We’re thrilled to see startups that have gone through BimaLab launch innovative products that will redefine how insurance is offered and accessed in the Kenyan market, and even beyond our borders. We will work closely with the innovators, the insurer and the regulator to see that the project achieves its intended impact.”

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APA links with innovators to create low cost insurance products

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In Summary

  • Kenya plans to push its health insurance penetration to 45% by 2030 from the current 22%.
  • Overall, Kenya’s three percent insurance penetration is the third lowest in Sub-Saharan Africa with South Africa leading at 17 percent.

Swiss Capacity Building Facility (SCBF) and APA Insurance have partnered with a consortium of local insurance innovators to build low-cost health insurance.

The partnership seeks to provide affordable and relevant primary healthcare insurance solutions to under-served Kenyans.

Kenya plans to push its health insurance penetration to 45 per cent by 2030.

Overall,  Kenya’s three per cent insurance penetration is the third lowest in Sub-Saharan Africa with South Africa leading at 17 per cent.

This is due to most of Kenya’s population perceiving insurance as a “nice-to-have/easy to discard” product rather than one that is essential.

It is an innovative solution designed with a hybrid model of capitation costs and in-patient benefits for patients who become hospitalised.

“We are proud to launch this innovative initiative which will see thousands of under-served households in rural and peri-urban Kenya have access to sustainable primary health care financing solutions,” Dana Ellis, senior operations manager at SCBF said.

The technical assistance funding from SCBF will contribute to strengthening financial inclusion and increasing resilience against primary healthcare costs for under-served communities in Kenya, intending to reach at least 50 per cent of women.

This is aligned with the Government of Kenya’s 2030 financial inclusion strategy to ensure that no person in Kenya is left out of reach of financial services.

Speaking at the launch, APA Group CEO Ashok Shah said it is important for insurers to think beyond offering insurance to the affluent customer segment.

“The future of insurance lies in tapping into the majority of the population which remains uninsured. APA has been at the forefront of supporting inclusive insurance solutions targeting the middle and lower base of the economic pyramid,” Ashok.

The demand for new innovative insurance solutions, over the last few years, has seen an emergence of insurtech and simplified customer experiences facilitating the purchase, service and making of claims without the barriers associated with mainstream insurance.

This proliferation has particularly been fuelled by the regulator-backed programme, BimaLab, in partnership with Financial Sector Deepening Africa (FSD Africa).

BimaLab is an accelerator programme that supports early insurtech innovators to develop innovative insurance solutions.

Elias Omondi, senior manager of risk regulation at FSD Africa says they are thrilled to see startups that have gone through BimaLab launch innovative products that will redefine how insurance is offered in the Kenya market and even beyond our borders.

“We feel honoured to have been selected to offer local support and monitoring mandate by SCBF. We will work closely with the innovators, the insurer and the regulator to see that the project achieves its intended impact.”

The project will enable three BimaLab participants, Paa Insurance Agency, Emerging Markets and Democrance, supported by Illara Health, to build cutting-edge solutions for a market that continues to be neglected by mainstream insurance providers.

“The project will enable us to refine and scale inclusive insurance solutions that we have been developing since our participation in BimaLab,” Omondi said.

Health insurance has been considered as key to achieving universal health care by various countries.

This is with the aim of ensuring that every citizen should have access to needed healthcare services that are effective and of acceptable quality and that no one should risk financial ruin as a result of illness.

However, recent statistics still indicate that in Kenya, currently, 26.6 per cent of total health expenditure is out of pocket.

Out-of-pocket spending on healthcare has been found to drive the poor into more poverty and poses a barrier to their access to healthcare.

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FSD Africa, swiss Re Foundation and others partner for financial inclusion in Africa

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FSD Africa has partnered with the Swiss Re Foundation and the National Bank of Rwanda to launch BimaLab Africa Acceleration Program – a pioneering accelerator program that aims to grow insurance coverage among low-income consumers by investing in innovative solutions in nine African countries.

The expanded pan-African program is designed to support entrepreneurs in developing innovative solutions for the insurance sector. It targets Insurtech (insurance technology) innovations from Egypt, Ethiopia, Kenya, Ghana, Morocco, Nigeria, Rwanda, Uganda, and Zimbabwe.

The expansion of BimaLab is supported by $500,000 financing from the Swiss Re Foundation, which is among the world’s leading providers of reinsurance, insurance, and other forms of insurance-based risk transfer.

BimaLab Africa has been devised as a model which addresses crucial challenges facing African consumers, especially those at the base of the economic pyramid. While insurance provides a vital safety net for customers at risk of external threats including health issues, economic disruptions, and natural disasters, it has, for many Africans, been unavailable – only 3% of Africa’s GDP is driven by insurance, less than half the world average of 7%.

Kelvin Massingham, Director of Risk and Resilience, FSD Africa, said, “BimaLab offers hands-on venture-building support to high-impact start-ups that improve the resilience of underserved and climate-vulnerable communities. We are grateful for the financial support provided by the Swiss Re Foundation, which has enabled us to democratize the successful BimaLab model across the region.”

The incubator, which combines the demonstration of global best practices with in-depth local knowledge, offers applicants a rigorous five-month program in which they are supported with expertise, resources, and support for scalability and market readiness.

Stefan Huber Fux, Director at Swiss Re Foundation said: “We are committed to making insurance more accessible and affordable for low-income consumers in emerging markets, and we believe that supporting programs like BimaLab is one way we can help to achieve this goal. New digital technologies have the potential to enhance financial inclusion by providing access to unserved and underserved customers.”

The partnership will focus on three main areas: enhancing access to financial services; increasing insurance penetration; and promoting innovation in the financial sector.

Hon. John Rwangombwa, Governor, NBR said: “The National Bank of Rwanda is committed to promoting financial inclusion in Rwanda, and this partnership with FSD Africa and Swiss Re Foundation is a key step towards achieving that goal. We believe this partnership will help to increase access to financial services, promote innovation and boost economic development across Rwanda and Africa”.

BimaLab Africa expands on successful Insurtech initiatives in Kenya, Nigeria, and Ghana to provide African entrepreneurs with the tools and support needed to develop innovative insurance solutions. The program has helped 40 insurtechs scale their innovations, resulting in 20 partnerships and 43 new products in Kenya, Ghana, and Nigeria. BimaLab has reached over 500,000 customers and raised over USD 1 million, promoting innovation and inclusion in the insurance industry. The new program aims to contribute to the growth of the African insurance market and is implemented by Tellistic Technology Services.

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Insurance experts meet in Nairobi to address low product uptake

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In Summary

  • Despite Africa having one of the lowest insurance penetration rates in the world, the regions’ appetite for insurance is growing.
  • Key topics to be discussed include climate risk and agricultural insurance, MSME Insurance, Inclusive digital insurance models, and enabling inclusive insurance market.

Kenya is set to host the 2023 Eastern and Southern Africa Regional Conference on Inclusive Insurance amidst low insurance penetration in the continent.

The conference in its 8th edition themed ‘Driving Inclusive Insurance Agenda: Closing the Protection Gap’, will be hosted by the Insurance Regulatory Authority of Kenya (IRA) and Munich Re Foundation in Nairobi, starting today to April 26.

IRA commissioner of insurance and CEO Godfrey Kiptum said despite Africa having one of the lowest insurance penetration rates in the world, the regions’ appetite for insurance is growing.

“To cater to growing demand, Africa’s insurance market will need a makeover. The conference is aimed at sharing insights on inclusive insurance business models that are making access to low-income market segments in Africa possible,”explained Kiptum.

The conference is a combination of high-quality training and plenary sessions and is supported by the FSD Africa, Association of Kenya Insurers, APA insurance, AB Consultants, FinProbity Solutions, Africa – Re and The Microinsurance Network.

“The organisation and implementation of this conference is based on the strong belief of the power of learning and sharing; the conference therefore brings international, regional and local professionals who will exchange experiences and discuss a number of key themes and topics on inclusive insurance business,” he said.

Representatives from insurance and reinsurance companies, brokers, distribution channels, international organisations, NGOs, development-aid agencies, policymakers, regulators and supervisors in Africa will attend the conference.

Some of the Key topics to be discussed include climate risk and agricultural insurance,  MSME Insurance,  Inclusive digital insurance models, and how to enable inclusive insurance market, among others.

The IRA 2021 Annual report indicates that Africa reported premiums of $74.2 billion  (Sh9.9 trillion) accounting for 1.1 per cent of the world insurance premiums.

This was an increase of 6.2 percent in premium compared to a decline of 1.9 percent in 2020.

Africa’s long-term insurance premium grew by 7.1 percent in real terms to USD 51.32 billion (2020: USD 41.83 billion) whereas, the general insurance premium recorded a growth of 4.4 percent to USD 22.88 billion (2020: USD 20.05 billion) due to economic rebound from pandemic-induced recession in 2020.

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FSD Africa, Swiss Re Foundation and National Bank of Rwanda Launch Partnership to Boost Financial Inclusion in Nine African Countries

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20th April 2023, Kigali, Rwanda – FSD Africa has partnered with the Swiss Re Foundation and the National Bank of Rwanda to launch BimaLab Africa Acceleration Program – a pioneering accelerator program that aims to grow insurance coverage among low-income consumers by investing in innovative solutions in nine African countries.

The expanded pan-African program is designed to support entrepreneurs in developing innovative solutions for the insurance sector. It targets Insurtech (insurance technology) innovations from Egypt, Ethiopia, Kenya, Ghana, Morocco, Nigeria, Rwanda, Uganda, and Zimbabwe.

The expansion of BimaLab is supported by $500,000 financing from the Swiss Re Foundation, which is among the world’s leading providers of reinsurance, insurance, and other forms of insurance-based risk transfer.

FSD Africa, Swiss Re Foundation and National Bank of Rwanda Launch Partnership to Boost Financial Inclusion in Nine African Countries

BimaLab Africa has been devised as a model which addresses crucial challenges facing African consumers, especially those at the base of the economic pyramid. While insurance provides a vital safety net for customers at risk of external threats including health issues, economic disruptions, and natural disasters, it has, for many Africans, been unavailable – only 3% of Africa’s GDP is driven by insurance, less than half the world average of 7%.

Kelvin Massingham, Director of Risk and Resilience, FSD Africa, said, “BimaLab offers hands-on venture-building support to high-impact start-ups that improve the resilience of underserved and climate-vulnerable communities. We are grateful for the financial support provided by the Swiss Re Foundation, which has enabled us to democratize the successful BimaLab model across the region.”

The incubator, which combines the demonstration of global best practices with in-depth local knowledge, offers applicants a rigorous five-month program in which they are supported with expertise, resources, and support for scalability and market readiness.

Stefan Huber Fux, Director at Swiss Re Foundation said: “We are committed to making insurance more accessible and affordable for low-income consumers in emerging markets, and we believe that supporting programs like BimaLab is one way we can help to achieve this goal. New digital technologies have the potential to enhance financial inclusion by providing access to unserved and underserved customers.”

The partnership will focus on three main areas: enhancing access to financial services; increasing insurance penetration; and promoting innovation in the financial sector.

Hon. John Rwangombwa, Governor, NBR said: “The National Bank of Rwanda is committed to promoting financial inclusion in Rwanda, and this partnership with FSD Africa and Swiss Re Foundation is a key step towards achieving that goal. We believe this partnership will help to increase access to financial services, promote innovation and boost economic development across Rwanda and Africa”.

BimaLab Africa expands on successful Insurtech initiatives in Kenya, Nigeria, and Ghana to provide African entrepreneurs with the tools and support needed to develop innovative insurance solutions. The program has helped 40 insurtechs scale their innovations, resulting in 20 partnerships and 43 new products in Kenya, Ghana, and Nigeria. BimaLab has reached over 500,000 customers and raised over USD 1 million, promoting innovation and inclusion in the insurance industry. The new program aims to contribute to the growth of the African insurance market and is implemented by Tellistic Technology Services.

 

FSD Africa Marks 10 Years Of Greening Financial Markets

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“In a short space of time, we have strengthened and developed financial markets and tapped into capital by using new instruments such as green and gender bonds,” says Mr Mark Napier, CEO of FSD Africa.

FSD Africa, a UK Aid funded specialist development agency, on 27th March celebrated a decade of strengthening financial markets across Africa, growing economies, increasing incomes for vulnerable populations and combatting poverty.

FSD Africa has made significant strides over the past decade by advancing policy and regulatory reforms, enhancing financial infrastructure and increasing capacity, all while tackling systemic issues in Africa’s financial markets. These efforts have led to large-scale and long-term change, providing access to financial services to over 10.2 million people and addressing issues related to financial exclusion.

During the Covid-19 pandemíc, FSD Africa observed a remarkable 87% increase in the demand for and use of remittance services, which played a crucial role in protecting families from Covid-19’s financial impacts.

FSD Africa’s market-building initiatives have resulted directly or indirectly in £1.9 billion of long-term capital made available for SMEs, affordable housing and sustainable energy projects, among others. Its support for financial sector innovation has increased access to financial services for close to 12 million Africans, while its support for business growth has improved access to finance for more than 3 million African businesses and led directly or indirectly to the creation of over 35,000 new jobs.

“Celebrating over ten years of our trailblazing work across Africa is special,” said Mr Mark Napier, CEO of FSD Africa. “In a short space of time, we have strengthened and developed financial markets and tapped into capital by using new instruments such as green and gender bonds.”

FSD Africa’s strategy has evolved to address the continent’s expanding needs, with a greater emphasis on identifying innovative methods to mobilise resources for sustainable economic development. The organisation has recently boosted investment into projects that enable an equitable transition to a green future for Africa after several successful initiatives, including developing regulations and assisting green bond issuance programmes in Kenya and Nigeria.

The organisation’s green portfolio and pipeline have expanded because of continuous investments in programmes that provide environmental and social consequences, with close to £50 million being invested in green initiatives.

Ms Jane Marriott, OBE, British High Commissioner to Kenya said the UK is continually working with Kenya to promote green finance and economic growth as part of its strategic partnership with Kenya. FSD Africa is delivering on these priorities in Kenya and across the continent, creating over 35,000 jobs and leveraging more than Ksh300 billion into sectors like renewable energy.

Kenya’s National Treasury Cabinet Secretary Prof Njuguna Ndung’u, said Kenya’s partnership with FSD Africa has created a favourable environment for the growth of local capital markets, resulting in increased interest from both domestic and foreign investors.

“FSD Africa also played a crucial role in establishing the Nairobi International Financial Centre (NIFC), positioning Kenya to receive more financial flows,” Prof Ndung’u said. “We look forward to collaborating more closely with FSD Africa on green finance initiatives to promote sustainable development while addressing climate change challenges.”

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FSD Africa marks 10 years of strengthening, greening financial markets across Africa

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FSD Africa, a UK aid funded specialist development agency, today celebrated a decade of strengthening financial markets across Africa, growing economies, increasing incomes for vulnerable populations, and combatting poverty.

FSD Africa has made significant strides over the past decade by advancing policy and regulatory reforms, enhancing financial infrastructure and increasing capacity, all while tackling systemic issues in Africa’s financial markets. These efforts have led to large-scale and long-term change, providing access to financial services to over 10.2 million people and addressing issues related to financial exclusion. During the Covid-19 pandemic, FSD Africa observed a remarkable 87% increase in the demand for and use of remittance services, which played a crucial role in protecting families from the pandemic’s financial impacts.

FSD Africa’s market-building initiatives have resulted directly or indirectly in £1.9 billion of long-term capital made available for SMEs, affordable housing and sustainable energy projects, among others. Its support for financial sector innovation has increased access to financial services for close to 12 million Africans, while its support for business growth has improved access to finance for more than 3 million African businesses and led directly or indirectly to the creation of over 35,000 new jobs.

Speaking during the event, Mark Napier, CEO at FSD Africa said: “Celebrating over ten years of our trailblazing work across Africa is special: in a short space of time, we have strengthened and developed financial markets, and tapped into capital by using new instruments such as green and gender bonds. The future is key, and I look forward to continuing our hard work with our collaborative and innovative team. I have no doubt that we will continue to support and address Africa’s expanding needs as we move towards sustainable economic development.’’

Future-focused, FSD Africa’s strategy has evolved to address Africa’s expanding needs, with a greater emphasis on identifying innovative methods to mobilise resources for sustainable economic development. The organisation has recently boosted their investment into projects that enable an equitable transition to a green future for Africa after several successful initiatives, including developing regulations and assisting green bond issuance programmes in Kenya and Nigeria. The organisation’s green portfolio and pipeline have expanded because of continuous investments in programmes that provide environmental and social consequences, with close to £50 million being invested in green initiatives.

Jane Marriott, OBE, British High Commissioner to Kenya said: ‘”The UK is continually working with Kenya to promote green finance and economic growth as part of the UK-Kenya Strategic Partnership. FSD Africa is delivering on these priorities in Kenya and across the continent, creating over 35,000 jobs and leveraging more than KES 300 billion into sectors like renewable energy. I look forward to FSD Africa’s continued work in the years ahead.”

Prof. Njuguna Ndung’u, Cabinet Secretary, Kenya National Treasury said: ‘’Kenya’s partnership with FSD Africa has created a favourable environment for the growth of our local capital markets, resulting in increased interest from both domestic and foreign investors. FSD Africa also played a crucial role in establishing the Nairobi International Financial Centre (NIFC), positioning Kenya to receive more financial flows. We look forward to collaborating more closely with FSD Africa on green finance initiatives to promote sustainable development while addressing climate change challenges.’’

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