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Kacha Digital Financial Services, Ethiopia's first private mobile money operator, is addressing the low insurance penetration rate in Ethiopia by introducing digital premium financing. In partnership with Lucy Insurance S.C. and Global Bank of Ethiopia, and supported by FSD Africa's BimaLab Insurtech Accelerator Programme, Kacha allows users to pay for motor vehicle and other insurance premiums via manageable instalments on a mobile platform. This initiative aims to support underserved groups such as MSMEs, farmers, and self-employed individuals who previously faced high upfront cost barriers.

BCP and Attawfiq Micro-Finance launched Morocco's first Gender Bond, raising USD 25 million to provide microloans and non-financial services to over 17,000 women, addressing systemic barriers to financial inclusion in both urban and rural areas.

The report finds that while carbon markets have the potential to generate social and economic benefits for LMIC communities, current impacts are often suboptimal or negative due to poor project design and governance. Agricultural and energy efficiency projects generally show higher potential for positive community impact than pure forest conservation projects, which often restrict access to vital resources. Key barriers include low carbon prices in voluntary markets, delayed payments, and the exclusion of women due to land tenure structures. Positive outcomes are linked to pro-poor design, inclusive governance, higher carbon prices for co-benefits, and adherence to stringent standards like the CCB Standard.

FSD Africa has issued a pre-qualification call for suppliers and consultants for the 2025-2030 period. The process is open to eligible firms and individuals, with a focus on sustainable procurement and ESG best practices. Applicants must demonstrate at least four years of experience and financial capability. The deadline for submission is 08 May 2025.

The report assesses the nascent green bond market in Africa, which has raised approximately USD 9.6 billion through 76 issuances since 2013. While the market is growing, it remains a niche segment constrained by high issuance costs—up to 5% of total deal value compared to 0.9% in Europe—and macroeconomic instability. The analysis finds that green bonds provide financial additionality for issuers through faster capital raising and access to diverse investors, but primarily fund mitigation projects, with only 7% of proceeds going to pure adaptation. Social inclusion and gender considerations are generally absent from design but occur as indirect co-benefits, such as job creation. The report recommends the development of an African Sustainable Finance Taxonomy, the mandatory inclusion of 'Do no harm' and gender provisions, and the use of project preparation facilities to make adaptation projects more bankable.

The report details the outcomes of the FSD Network Conference held in Nairobi, Kenya, in February 2025. It examines the impact of gender-responsive financial systems, the use of alternative credit scoring, the influence of societal gender norms on financial autonomy, and the role of digital public infrastructure and AI in bridging the gender gap in financial services across Africa.

The document outlines a proposed African-led financial architecture to move from crisis resolution to prevention. The first pillar, the African Financial Stability Mechanism (AFSM), is a proposed regional financing arrangement (RFA) providing concessional liquidity, including a specific climate shock liquidity facility, to manage exogenous shocks. The second pillar, the African Stability and Growth Pact (ASGP), is a flexible fiscal governance framework that uses peer accountability and nationally tailored fiscal rules rather than uniform targets. The two are integrated such that access to AFSM liquidity is linked to a country's commitment to and performance under the ASGP. The framework is designed to be hosted by the African Development Bank (AfDB) with oversight from the African Union (AU), and capitalised through a blend of member contributions, Special Drawing Rights (SDRs), and development finance.

The report outlines a strategic framework to strengthen Africa's financial stability by combining a regional liquidity facility (MASF) with a flexible budgetary governance pact (PASC). The MASF is designed to provide rapid, concessional liquidity to counter exogenous shocks, including climate-related disruptions, while the PASC encourages national budgetary discipline through peer accountability and tailored rules. Together, they aim to reduce dependence on external donors and improve market credibility through a phased implementation starting with a pilot phase between 2025 and 2027.

FSD Africa is working to deepen African capital markets to reduce reliance on banks and external debt, leveraging an estimated $2 trillion in domestic assets. The organization employs a four-pronged strategy: policy and regulatory development, market infrastructure creation, product development (specifically GSSS bonds), and stakeholder convening. Key achievements include mobilising over $1.2 billion through 21 thematic bond transactions and establishing critical infrastructure like the Ethiopian Securities Exchange. Future priorities include carbon markets, sovereign debt management, and financing the energy transition.

Climate finance in Africa grew by 48% between 2019/20 and 2021/22, reaching USD 43.7 billion, yet this remains only 23% of the annual funding required to meet 2030 NDC goals. Public finance dominates the landscape, providing 82% of total flows, while private finance is heavily concentrated in energy systems and a small number of countries. The report highlights a critical 'trilemma' where climate-vulnerable countries are often simultaneously debt-distressed and conflict-affected, further hindering their access to grants and affordable capital. Key recommendations include reforming domestic fiscal policies to remove fossil fuel subsidies, scaling the use of guarantees to de-risk private investment, and leveraging domestic institutional assets, such as pension funds, to reduce reliance on international debt.

FSD Africa is implementing a program to promote the adoption of the Taskforce on Nature-related Financial Disclosures (TNFD) across Africa, focusing on adapting the global framework to local contexts. The initiative includes capacity building, the creation of the African Natural Capital Alliance (ANCA), and strategic outreach to G20 and sovereign stakeholders. A key partnership with FirstRand has involved piloting the TNFD framework through nature-risk assessments in the agricultural and extractive industries and evaluating organizational readiness for disclosure.

The report examines benefit-sharing mechanisms (BSMs) in African carbon projects, highlighting the need for transparency, fairness, and community agency to attract high-integrity investment. It categorizes projects by risk—identifying community land-based projects as the highest risk—and proposes five core principles for best-practice BSMs. The authors argue that current low carbon prices fail to cover the costs of robust community engagement and call for regulatory frameworks and commercial financing tailored to the African context.

The report forecasts that Africa will create between 1.5 and 3.3 million new direct green jobs by 2030 across 12 material value chains. The energy and power sector is the primary driver, with solar energy alone projected to generate up to 1.7 million jobs. The analysis highlights a significant need for both unskilled labor (40% of total) and specialized skills (30%), particularly in solar, climate-smart agriculture, and waste recycling. Five focus countries—South Africa, Kenya, Nigeria, Ethiopia, and the DRC—are expected to contribute up to 720,000 of these jobs, with South Africa, Kenya, and Nigeria showing the highest potential. The report emphasizes that while long-term estimates suggest up to 100 million green jobs by 2050, immediate investment in human capital and vocational training is required to realize this growth.

The report evaluates how nature-related risks impact business profits and credit losses in five African banking systems. It finds that an 'orderly transition' aligned with the Global Biodiversity Framework (GBF) minimizes financial risks, whereas a 'disorderly transition' can lead to significant profit losses and increased credit losses, particularly in agriculture and mining. The analysis highlights that nature-related risks in these sectors are comparable in scale to climate-related risks in emissions-intensive sectors.

The document describes a project in the Democratic Republic of Congo (DRC) where FSD Africa and Equity BCDC implemented an agency banking model to reach rural and peri-urban populations. By deploying over 5,000 agents and utilizing a 'Master Agency' strategy to overcome KYC documentation barriers, the initiative opened over 650,000 new accounts. The project also integrated renewable power and internet connectivity for rural agents and developed micro-loan scoring tools to facilitate capital access for previously excluded populations.

The R3Lab Toolkit offers a framework for insurance regulators to balance the promotion of innovation with consumer protection. It outlines a process starting with innovation gap and ecosystem assessments, followed by the application of a 'toolbox' comprising regulatory adjustments (e.g., sandboxes, tiered licensing), supervisory improvements (e.g., streamlined approvals, suptech), proactive engagement (e.g., newsletters, workshops), and monitoring via KPIs and social listening. The guide emphasizes that the choice of tools must be fit-for-context and supported by top leadership buy-in and internal capacity building.

The document outlines FSD Africa's commitment to combating money laundering and terrorism financing in accordance with international and national laws, including those of Kenya and its donor countries. It defines a risk-based approach involving screening, training, and monitoring, and assigns specific oversight roles to the Risk and Compliance Lead (as MLRO), the CEO, and the Board of Directors. The policy extends these compliance requirements to all personnel and grantees, mandating strict reporting timelines and due diligence processes.

The Lagos State Climate Adaptation and Resilience Plan (LCARP) identifies critical climate risks—sea-level rise, extreme rainfall, and extreme heat—and proposes a $9 billion portfolio of 33 projects to mitigate these threats. The plan emphasizes diversifying financing mechanisms beyond concessional debt to include blended finance, grants, and nature-based solutions, while recommending policy and governance reforms to attract private investment.

FSD Africa's Modern Slavery Policy defines a zero-tolerance approach to forced labour, trafficking, and servitude. It mandates annual public statements from the board, robust due diligence for third parties, and staff training. The policy applies to all staff and associated personnel, requiring adherence to a third-party code of conduct and providing a whistleblower hotline for reporting suspicions.

The FSD Africa Travel & Expense Policy (Version 4.0) outlines the standards for transportation, accommodation, and reimbursable expenses for all staff, board members, and consultants. It prioritises economy travel and virtual conferencing to minimise CO2 emissions and maintain operational travel costs within 2% of the overall budget. The policy allows for business class on specific long-haul flights and sets a general hotel reimbursement limit of £200 per night. It also includes safety protocols for emergencies and a commitment to monitoring the organisation's carbon footprint.