Search Climate Insights Directory

The author contends that sub-Saharan African low-income economies face a severe debt and solvency crisis, with debt service consuming 31 per cent of revenues and eroding poverty gains. The text calls for a comprehensive debt relief mechanism equivalent to the Heavily Indebted Poor Countries (HIPC) initiative and reforms to the G20 Common Framework to facilitate quicker debt restructuring.

The report evaluates the impact of FSD Africa's regulatory interventions in African capital markets, highlighting the importance of tailoring international best practices to local contexts and the need for formal implementation support. It identifies capacity constraints at both regulator and market participant levels as significant barriers to the adoption of new frameworks, such as Islamic finance regulations in WAEMU and corporate bond guidelines in Ghana. The document recommends a sequenced and clustered approach to future interventions, with an increasing focus on green and sustainable finance once foundational regulatory structures are established.

The study explores a mechanism to transfer non-sovereign MDB loans to African institutional investors, particularly pension funds, in East and West Africa. It identifies a potential pool of eligible assets from the IFC and AfDB and estimates that up to US$8.69 billion in pension assets could be allocated to such a vehicle if locally domiciled. The report proposes a phased implementation starting with a pilot, managed by a dedicated Fund Manager, using an umbrella fund structure with local currency sub-funds to mitigate foreign exchange risks.

The report identifies severe disruptions in Sudan's food systems and financial infrastructure due to conflict, noting that over 20 million people face acute food insecurity. It highlights a dramatic decrease in planted areas, the destruction of processing capacity in Khartoum, and the collapse of the Central Bank of Sudan's electronic banking switch. To address these, the document proposes 'twin-track' interventions focusing on prioritized value chains (sorghum, horticulture, and oilseeds) and the adoption of digital financial services and informal payment networks to bypass physical and institutional barriers.

The analysis reveals a significant gap between the mention of gender in African NDCs and the implementation of substantive gender-responsive actions. While 90% of assessed NDCs reference gender, only 23% include gender-responsive budgeting and 32% are informed by a gender analysis. The paper highlights that high levels of climate finance mobilisation in countries like Morocco, South Africa, and Egypt have not translated into gender-responsive budgeting. Furthermore, private climate finance remains heavily concentrated in the energy sector (74%), which typically has lower female participation compared to the agriculture, forestry, and other land use (AFOLU) sector, which received only 7% of funding.

The report presents a comprehensive four-component framework—Baseline and Ambition, Initiatives, Instruments, and Governance and Implementation—designed to help countries safeguard and restore natural capital. It details 14 subcomponents, ranging from natural capital assessments and the creation of a national vision to the deployment of regulatory and financial instruments. The framework emphasizes an iterative process, utilizing tools like marginal abatement cost curves for prioritizing initiatives and gap assessments to identify policy voids. It specifically highlights the economic risks of nature loss in Africa, such as the potential for nature-related risks to double expected financing losses in agriculture by 2030, while noting opportunities in the blue economy. The framework was piloted in Ghana with a wide range of government and private sector stakeholders.

The Nairobi Declaration asserts that Africa is disproportionately affected by climate change despite minimal historical responsibility. It calls for the global community to honor the $100 billion annual climate finance promise, operationalize the Loss & Damage fund, and reform the multilateral financial system to reduce the 'great financial divide' in borrowing costs. The declaration commits Africa to green industrialization, increasing renewable energy capacity to 300 GW by 2030, and valuing its natural capital. It specifically requests the re-channeling of $100 billion in Special Drawing Rights (SDRs) to Africa and the reduction of corporate tax losses from profit shifting.

The document outlines a study on sovereign debt management during the COVID-19 crisis, highlighting the severe economic impact on developing countries and the specific vulnerabilities of Sub-Saharan African nations. It notes that the pandemic induced major debt stresses and operational challenges, leading countries to implement fiscal, monetary, and financial policies to cushion local markets. The full study is divided into four thematic areas: macroeconomic policy interventions, external financing operations, local currency bond markets, and governance and operational risk management frameworks.

This report examines the economic impact of the COVID-19 pandemic on MEFMI member states in sub-Saharan Africa, detailing how public health measures and external shocks led to GDP declines and increased fiscal pressure.

This text examines the economic and social impacts of the COVID-19 pandemic on developing countries, with a specific focus on the challenges faced by African nations regarding fiscal stability, healthcare access, and vaccination rates.

The COVID-19 pandemic created historic debt stresses for developing countries, characterized by increased borrowing needs and economic downturns. In sub-Saharan Africa, pre-existing vulnerabilities and limited fiscal space—with 16 countries already at high risk of or in debt distress—exacerbated these challenges. Debt management offices also faced unprecedented operational risks due to volatile market conditions and the shift to remote working arrangements.

Octavia Carbon is a Kenya-based startup developing Direct Air Carbon Capture (DACC) technology to remove CO2 from the atmosphere for permanent storage or industrial use. The company aims to disrupt the high cost of DACC by utilizing Kenya's natural endowments, specifically the high-porosity basaltic rock of the Rift Valley for storage and waste heat from geothermal power for energy. By the end of 2024, Octavia Carbon intends to produce at least one machine per day, reaching a capacity of approximately 40,000 tonnes of CO2 per year. The company projects a cost per tonne of CO2 between $300 and $500, significantly lower than current global ranges of $775 to $1,200, positioning it as a potential global cost leader by mid-decade.

The report introduces a four-component framework to help countries manage nature-related risks and opportunities while meeting international obligations like the Kunming-Montreal Global Biodiversity Framework. The framework covers baseline assessment, initiative identification, instrument selection, and governance structures to improve economic well-being and climate outcomes through nature protection and restoration.

The document details how Amani, a refugee from South Sudan living in Uganda's Bidi Bidi settlement, used services from the Financial Inclusion for Refugees (FI4R) Project to establish a handmade crafts business. Supported by FSD Africa, FSD Uganda, and financial providers like Equity Bank Uganda Limited, Amani accessed savings accounts and credit, which enabled him to achieve financial independence and mentor other refugees in financial literacy and entrepreneurship.

The ESPM Manual provides a comprehensive framework for FSD Africa to manage environmental and social risks and drive intentional positive impact across its intervention lifecycle. It details specific procedures for both grant funding and risk capital investments, including screening, due diligence, and monitoring. A central feature is the Gender Lens Investing (GLI) Framework used by the FSDAi pillar to promote women's economic empowerment. The system employs a risk-based approach, categorizing investments from low to high risk to determine the depth of due diligence required, and mandates strict incident reporting and periodic system reviews every two years.

The Jasiri Gender Bond, launched in February 2022, mobilised USD 32 million to support women-led businesses in Tanzania, particularly in agriculture, retail, education, and male-dominated sectors like mining and energy. The bond was oversubscribed by 197% and became the first Sub-Saharan bond listed on the Luxembourg Green Exchange. A case study of High Quality Tanzania demonstrates how Jasiri loans enabled a feminine hygiene product importer to increase turnover to over TZS 10 Billion ($3.9 million) and expand operations internationally.

The Jasiri Gender Bond, launched in February 2022 by NMB Bank with technical support from FSD Africa, mobilised USD 32 million to support women-led enterprises in Tanzania. The bond provided capital to over 200 SMEs and 3,000 MSMEs, offering loans at a competitive 14% interest rate compared to the 19% market average. It was the first Sub-Saharan bond listed on the Luxembourg Green Exchange and saw a 197% oversubscription, with 99% of investors being retail investors. The bond's success was supported by the Capital Markets and Securities Authority's adoption of ICMA guidelines, facilitating the use of global standards for local ESG products.

The Jasiri Gender Bond, launched in February 2022, aims to stimulate economic growth and empower women in Tanzania. It mobilised USD 32 million with a 197% oversubscription rate and became the first Sub-Saharan Bond listed on the Luxembourg Green Exchange. The bond supports women in traditional sectors like retail and education, as well as male-dominated fields such as mining and energy. A specific example is provided through Gudila Kimati of Maggy Dress-Up, who used a loan from NMB Bank linked to the bond to diversify her plus-size clothing business into a one-stop shop offering shoes, handbags, and children's clothing.

The Jasiri Gender Bond, launched in February 2022, provides low-interest financing to empower women entrepreneurs in Tanzania, particularly in sectors like agriculture, retail, and male-dominated industries such as energy and mining. The bond mobilised USD 32 million and is listed on the Luxembourg Green Exchange. A specific case study of Mkajungu Hardware demonstrates how the bond's 14% interest rate—significantly lower than market rates of up to 25%—enabled the business to expand its inventory and plan new branches in Kagera and neighbouring countries.

The report identifies supply and demand side barriers to digital financial services (DFS) in Sudan and offers strategic recommendations for humanitarian organizations. On the supply side, it suggests providing financial service providers with detailed revenue potential data, supporting the transition from informal airtime credit transfers to formal agent networks, and advocating for the recognition of refugee ID cards as valid KYC documents. On the demand side, the report recommends enhancing digital capabilities—particularly for women—subsidizing handset costs through partnerships with mobile network operators, and collecting field data on network coverage to inform the feasibility of digital payments in specific areas.