Catalysing Africa's growth through sustainable capital markets

This progress report by FSD Africa details the organization's efforts to deepen African capital markets to mobilize long-term, local currency finance for sustainable development. The report outlines a four-pronged strategy focusing on policy and regulatory development, market infrastructure, capital market product innovation, and convening and advocacy. FSD Africa highlights its role as a neutral facilitator, leveraging technical assistance and grants to address systemic barriers such as risk-averse institutional investors and underdeveloped regulatory frameworks, with a specific emphasis on green, social, and gender-themed financing.

• The organization has supported the creation of critical market infrastructure in Ethiopia, including the establishment of the Ethiopian Securities Exchange (ESX) and the implementation of a Central Securities Depository (CSD) system to digitalize post-trade activities.
• The report identifies a significant gap between available domestic capital—estimated to cross US$7 trillion by 2040—and its allocation to the real economy due to risk aversion and a lack of suitable investment products.
• FSD Africa has established two regional industry bodies to improve pension coverage and alternative investment allocation: the Africa Pension Supervisors Association (APSA), representing regulators from 22 countries, and the Pan-African Fund Managers Association (PAFMA), which oversees assets exceeding $120 billion.
• The organization is developing listed MSME funds in Ghana and Kenya to provide long-term local currency finance for small businesses, with a proposed fund size of US$200 million in Ghana and $300 million in Kenya.
• The report highlights several 'groundbreaking' transactions, including the first privately issued gender bond in Africa (Morocco), the first green bond in Mauritius, and the first sub-national water infrastructure green bond in East Africa (Tanga UWASA in Tanzania).
• Future priorities for FSD Africa include addressing sovereign debt distress through debt-for-climate swaps, financing Africa's energy transition (which requires USD 120 billion annually until 2040), and developing carbon markets.

APA

FSD Africa (2024). Catalysing Africa's growth through sustainable capital markets. https://fsdafrica.org/wp-content/uploads/2025/05/Capital-Markets-Progres-Report-FSD-Africa.pdf

Chicago

FSD Africa. Catalysing Africa's growth through sustainable capital markets. 2024. https://fsdafrica.org/wp-content/uploads/2025/05/Capital-Markets-Progres-Report-FSD-Africa.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Catalysing Africa's growth through sustainable capital markets |date=November 2024 |url=https://fsdafrica.org/wp-content/uploads/2025/05/Capital-Markets-Progres-Report-FSD-Africa.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2024catalysing, author = {{FSD Africa}}, title = {{Catalysing Africa's growth through sustainable capital markets}}, institution = {FSD Africa}, year = {2024}, month = nov, url = {https://fsdafrica.org/wp-content/uploads/2025/05/Capital-Markets-Progres-Report-FSD-Africa.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }