The Future of Climate Finance, East Africa's Rapid Growth

The Future of Climate Finance, East Africa's Rapid Growth

Here's what you need to know to start your week

What's Inside

How Financial Institutions Can Help Mitigate Climate Risks

Top executives from banks and other financial institutions gathered at Capital Club East Africa in Nairobi last week to discuss the way forward for climate finance, at an exclusive?event hosted by?The Kenyan Wall Street ?in collaboration with?CIB Group?and?4G Capital?on the sidelines of the AfDB Annual Meetings in Nairobi.

  • Stakeholders in the finance sector agree that they have a monumental responsibility to ensure that ambitious but necessary projects meant to alleviate the effects of climate change receive adequate financing.?
  • The private sector has taken a leading role in combating the effects of environmental degradation by embracing sustainable and green solutions in their operations.?
  • According to 4G Capital Founder and CEO Wayne Hennessey-Barrett climate financing can only succeed if there is an accompanying progressive taxation policy.?

"But in the same vein as pursuing the opportunities of business empowerment and transition to a clean economy, we also have the opportunity to avoid the unsustainable high tax and high spending social models of the industrialized world," Hennessey-Barrett said, "African economies need fair and transparent and predictable taxation systems that see businesses, individuals and governments working and benefiting together."?

While the effects of climate change affect the entire globe, certain places are at a greater risk of dissipation and devastation. Africa has for a long time battled with unusual spells of drought and destructive volumes of rainfall attributable to climate change. This is despite contributing a tiny percentage of carbon emissions.?

"We as the African continent, our emission is only 5% of the entire globe. But unfortunately, the biggest cost from drought and floods caused by climate change impacts more poor people in Africa. One of the biggest challenges for financial institutions seeking is capital," said the chairman of CIB Group, Hisham Ezz Al-Arab.?

Read the full story here .

CIB Group Roots for Equity Financing in Fight against Climate Change

CIB Egypt is rooting for a new financing model to help the African continent move away from the effects of climate change.

kenyanwallstreet.com/cib-group-roots-for-equity-financing-in-fight-against-climate-change

“Having met capital allocators, fund managers, and banks, I can categorically say that we absolutely do not have a funding problem, what we have is an origination and structuring problem, and it is a serious gap.” -Nairobi Securities Exchange (NSE) CEO Frank Mwiti

Traders View: Is Bitcoin the new Gold?

The long-term view is that Gold will have more utility over time than Bitcoin, whose primary function is as a medium of exchange.

kenyanwallstreet.com/traders-view-is-bitcoin-the-new-gold

East Africa’s Rapid Growth


East Africa is poised to bounce back as the fastest growing region on the continent, according to a recent report by the African Development Bank (AfDB).

  • The regional bank predicts that the region’s real GDP growth will rise from an estimated 1.5 percent in 2023 to 4.9 percent in 2024 and 5.7 percent in 2025.
  • The 2024 prediction is actually a downward revision due to the ongoing conflict in Sudan and its effect on its neighbor, South Sudan.
  • Growth in Central Africa is expected to slow to 4.1 percent in 2024 from 4.3 percent in 2023, but improve to 4.7 percent in 2025.

West Africa is projected to grow from 3.6 percent in 2023 to 4.2 percent in 2024, and 4.4 percent in 2025. The AfDB predicts North Africa’s growth will decline to 3.6 percent in 2024 from 4.1 percent in 2023, while Southern Africa’s growth will improve from 1.6 percent in 2023 to 2.2 percent in 2024.

Despite the positive outlook, there are some major concerns around economic growth. “East Africa has the highest inflation at 26.5 percent in 2023, with Sudan leading the way at 245.3 percent,” the AfDB said in its African Economic Outlook 2024.

40 countries on the continent will post higher growth in 2024, with 17 of them expected to grow by more than 5 percent in 2024. This growth is expected to continue into 2025, and expand to at least 7 more economies growing by more than 5 percent. The continent’s remarkable growth means that it will retain its place as the second fastest growing region after Asia.

Read the full report here .

Don't forget to attend these events...

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CIB Group Roots for Equity Financing in Fight against Climate Change

CIB Egypt is rooting for a new financing model to help the African continent move away from the effects of climate change.

kenyanwallstreet.com/cib-group-roots-for-equity-financing-in-fight-against-climate-change

Fairness in Borrowing Rates, Investment Dominate AfDB Conference?

African heads of states have pledged to ramp up their share contributions to the AfDB to viably fund entrepreneurs and empowerment programs.

kenyanwallstreet.com/fairness-in-borrowing-rates-investment-dominate-afdb-conference

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UAE?has been the main destination for tens of billions of dollars worth of gold smuggled out of Africa each year for the last decade.

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Video of the Week

On the sidelines of our recent industry event in Kampala, we caught up with Luise Karamagi (Airtel Uganda’s Lead - International Money Transfer) to hear her thoughts on what must be done to make payments in Africa quicker, affordable, and trustworthy.

https://youtu.be/Pn_OeFBkyMA

Have a great week!

samuel irungu

Attended Nairobi technical training institute

5 个月

Insightful!

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Zale Tabakman

Founder, Indoor Vertical Farming financed with Green Bonds

5 个月

We have a Green Bond Framework to finance a network of Indoor Vertical Farms. The farms will provide sustainable food in alignment with several UN SDGs. We are issuing $100M Green Bonds in multiple jurisdictions that are expected to be oversubscribed. Is this of interest?

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Key insights on East Africa's booming climate finance sector.

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Explore how climate finance is fueling East Africa's growth!

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