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The report examines how global shocks have exacerbated chronic fiscal and current account imbalances in five Sub-Saharan African nations. It highlights severe liquidity and solvency risks, particularly regarding external debt in Ethiopia, Ghana, and Kenya. The authors argue that while some countries used debt monetization and financial repression to manage short-term costs, these practices inhibit long-term financial market development and fuel inflation. The document recommends strengthening public debt management, diversifying funding sources, and transitioning toward market-conform policies to avoid debt distress and encourage private sector credit.

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The report assesses the private debt landscape in Africa, noting that while the market is growing, it remains heavily dominated by Development Finance Institutions (DFIs) and Multilateral Development Banks (MDBs), primarily in hard currency. It highlights a significant gap in local institutional investor participation due to regulatory constraints, risk aversion, and a lack of local currency vehicles. The study provides detailed analysis of focus markets—Nigeria, Kenya, Ghana, and Morocco—and uses South Africa as a reference for a more developed financial sector. Key recommendations include the introduction of credit enhancement facilities, improved data transparency, and the creation of local currency investment vehicles to reduce foreign exchange risk for borrowers and attract domestic pension funds.

FSD Africa's Capital Markets team works to address financing gaps in Africa by developing enabling policies, market infrastructure, and innovative financial products. The report highlights the mobilization of approximately GBP 320 million through bond issuances, including pioneering green and gender bonds in countries like Nigeria, Kenya, and Morocco. It details the Africa Regulatory Support Programme (ARSP) and the African Local Currency Bond Fund (ALCB Fund) as key mechanisms for reducing currency risk and increasing private sector investment. Moving forward, FSD Africa is concentrating its efforts on five priority countries—Ethiopia, Ghana, Kenya, Morocco, and Nigeria—with a strong emphasis on green capital markets and natural capital finance.

The report examines the supply and demand sides of digital payments in Sudan to help humanitarian actors like the Norwegian Refugee Council (NRC) transition from cash to digital transfers. It identifies systemic barriers, including political instability, low digital literacy, and the prevalence of informal airtime credit transfers. The analysis segments beneficiaries by digital readiness, highlighting a significant gender divide and the high cost of handsets as primary barriers. Recommendations include subsidizing devices, providing digital capability training, and advocating for the recognition of refugee IDs for KYC purposes.

Africa's annual climate finance needs are estimated at USD 250 billion, yet only USD 29.5 billion was mobilized in 2020. The report identifies critical barriers—financial, governance, project-level, and infrastructure-related—across the energy, transport, buildings, and AFOLU sectors. It argues that bridging this gap requires shifting from traditional grants and concessional debt toward innovative structures like YieldCos, Green Bonds, and blended finance to 'crowd-in' private capital. The document provides a toolbox for matching specific instruments to barriers and highlights four case studies: TerraFund for AFR100, the Sub-National Climate Finance Initiative, Acorn's green housing ecosystem, and the Revego Africa Energy Fund.

The toolkit outlines a systematic approach for capital market regulators in emerging markets to identify institutional gaps and strengthen their capacity. It introduces the DAART framework (Define success, Align stakeholders, Assemble resources, Respect sensitivities, and Tailor for results) to ensure assessments are context-specific and actionable. The guide emphasizes the dual role of regulators in emerging markets—supervising and developing markets—and provides a methodology for prioritizing gaps based on impact and feasibility to create a 'pitch deck' for securing external funding and technical assistance.

The document evaluates insurance penetration and innovation in Uganda, noting a decline in penetration to 0.796% by 2021. It reviews the IRA's progress in implementing a 2019 action plan, highlighting the creation of a regulatory sandbox and streamlined product approvals, while recommending further inter-regulatory coordination and digital incentives to reach underserved markets.

The report finds that implementing Africa's NDCs will cost approximately USD 2.8 trillion between 2020 and 2030, with a 'climate finance need' of USD 2.5 trillion after accounting for domestic public commitments. Current annual flows of USD 30 billion cover only about 12% of the required USD 250 billion per year. Mitigation accounts for 66% of needs, heavily skewed toward South Africa's transport sector, while adaptation represents 24%, likely underestimated due to data gaps. The report highlights a significant reliance on public funding (87%) and recommends that the UNFCCC develop standardized guidance and that countries adopt more participatory, bottom-up needs assessments to mobilize private capital.

The report demonstrates that nature-related risks are material for African financial institutions, particularly in the agriculture and extractives sectors. Using the TNFD's LEAP approach, it finds that ambitious nature-positive transitions could lead to equity value changes between +2% and -5% and loan book changes between +0.3% and -0.6% by 2030. While aggregate portfolio impacts appear small due to limited sector exposure, specific risks in agriculture and extractives could double expected credit losses for some portfolios. The report highlights critical physical risks, such as water stress affecting 25% of African countries and habitat loss threatening ecotourism in Eastern and Southern Africa. It concludes that African financial institutions face significant capacity and data gaps in implementing nature-related disclosures and recommends an integrated approach that combines climate and nature risk management.

The document outlines a structured process for managing safeguarding concerns at FSD Africa, from the initial receipt of a report to the conclusion of the case. It defines the roles of the Designated Safeguarding Officer and Human Resources Director, establishes core principles of confidentiality and transparency, and details the steps for risk assessment, victim support, and investigation. The procedures emphasize the necessity of reporting suspected criminal activity to statutory authorities and ensuring that any actions involving children under 18 are guided by expert advice.

The FSD Africa Whistleblowing Policy (Version 2.0, May 2022) establishes a framework for employees, partners, and third parties to report unethical behaviour, malpractice, or criminal offences. It provides multiple reporting channels, including an independent 24/7 hotline, and outlines protections for whistleblowers against retaliation, while specifying disciplinary actions for malicious reporting.

The report identifies Ethiopia's insurance market as underdeveloped, characterized by low penetration and a dominance of compulsory general insurance. While donor-led pilots in agriculture have introduced index-based products, sustainable industry-led innovation is limited by severe skills shortages, particularly in actuarial science, and an enabling environment hampered by unreliable electricity and restrictive regulations. The document proposes a seven-point action plan for the Insurance Supervisory Directorate (ISD) to improve microinsurance and bancassurance regulations, digitalize supervisory processes, and establish a more independent regulatory authority.

The report examines pension fund investment patterns across eight Southern African countries, highlighting a general preference for government bonds and listed equities over private equity and private debt. It identifies regulatory constraints, a lack of professional expertise, and reputational risks as primary barriers to the growth of private markets. The document recommends increasing asset allocation ceilings, disaggregating private equity from broader 'alternative' categories, and developing regional investment frameworks to achieve economies of scale.

Kenya possesses a relatively large insurance market with a strong history of inclusive innovation, yet retail reach remains limited beyond compulsory lines and the National Hospital Insurance Fund. While the regulatory environment is largely enabling, significant barriers persist, including a shortage of STEM and actuarial skills, high data costs, and a lack of dedicated licensing for insurtechs. The report recommends that the IRA explicitly recognize insurtechs in its framework, enhance cross-authority coordination, and shift toward outcome-oriented innovation monitoring.

The report finds that while identification and mobile money access for refugees in Uganda improved significantly due to policy changes, formal financial service adoption remains hindered by high transaction costs and long travel distances to agents. Refugees rely heavily on non-employment income and informal savings groups (ASCAs and ROSCAs), with a notable increase in cash kept at home for health emergencies. The COVID-19 pandemic disproportionately reduced refugee incomes and increased expenditures, particularly for food and medicine. The report recommends expanding branchless banking, improving digital and financial literacy, and introducing microinsurance and sustainable energy solutions to enhance refugee financial health.

The report analyzes how insurance regulators in 31 sub-Saharan African countries responded to COVID-19, proposing a four-phase framework (Identify, Implement, Monitor, Adapt) to handle systemic risks. Key findings highlight the importance of risk-based supervision (RBS), proactive digital communication, and the need for real-time data via Suptech. It also identifies emerging future risks, including climate change, cyber-security, and political unrest.

The Travel & Expense Procedures (Version 3.0) establish the operational rules for claiming business expenses at FSD Africa. It mandates that all spending be "reasonable and necessary" and aligned with a "pro-poor mission." The document details specific reimbursement caps for meals, rules for alcohol and telephone usage, and the requirement for original receipts. It also includes specific protocols for travel during the Covid-19 pandemic and a carbon footprint statement aimed at reducing and offsetting CO2 emissions from business travel.

The report identifies a significant climate finance gap in the SADC region, estimating cumulative adaptation and mitigation needs at USD 200 billion for 2020-2030. While South Africa dominates the current market, the study finds that corporate issuers remain inactive compared to banks and sovereigns. Key barriers include a lack of bankable projects, limited institutional capacity, and shallow domestic capital markets in most member states. The report recommends strengthening the expertise of regulators and stock exchanges, establishing national champions, and incentivizing banks to develop eligible project portfolios.

The study examines the risk management needs of migrants in South Africa sending money to Ghana, Malawi, and Zimbabwe. It finds that senders are primarily concerned with health events, death, and job loss, as these risks threaten their ability to provide financial support to families. While there is interest in insurance for health and funeral costs for both senders and receivers, most currently rely on informal coping mechanisms like savings and borrowing from family. The report suggests that RLIPs should feature clear terms, small discretionary premiums, and a focus on the resilience of loved ones to be successful.