Making Finance Work for Africa (MFW4A)

Making Finance Work for Africa Making Finance Work for Agriculture Making Finance Work for Africa (MFW4A) had the privilege of joining Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and its partners at the "Scaling Access to Finance for Agripreneurs" conference in March in Berlin. Back in 2011, with the support of GIZ and the African Union, MFW4A established the "Kampala Principles," a set of 11 policy guidelines outlining key actions to improve access to financial services in the agricultural sector. Since then, these principles have been a cornerstone for advancing agricultural finance, shaping multiple initiatives, including the Global Project "Promotion of Agricultural Finance for Agri-Based Enterprises in Rural Areas" (GP AgFin https://lnkd.in/dJnTj8j2), which GIZ has implemented across nine countries over the past nine years. The event provided a platform for GIZ partners to reflect on scaling the GP AgFin approach and embedding financial access into agricultural transformation and food system policies. A key outcome of the conference was a joint declaration, offering concrete recommendations to further implement the Kampala Declaration under the African Union’s CAADP on “Building Resilient and Sustainable Agri-Food Systems in Africa.” During a panel discussion Marina Finken emphasized the crucial role of regulations and central banks in expanding agricultural finance. She highlighted that African central banks are well-positioned to lead agricultural finance advocacy within their jurisdictions, helping to prevent the “policy orphan” effect—a challenge outlined in the Kampala Principles. To enhance financial access for the agricultural sector, African central banks: ✅ Provide strong incentives to encourage banks and non-bank financial institutions (NBFIs) to participate in agricultural finance. These incentives could include fit-for-purpose sustainable and green finance taxonomies, recognizing that agriculture is among the sectors most affected by climate change. --> MFW4A is facilitating he development of a Pan-African Sustainable Finance Taxonomy to attract capital to key sectors for Africa’s sustainable development, including agriculture. ✅ Strengthen regulatory frameworks to enable innovative financial solutions such as fintech, mobile payments, and factoring while ensuring financial system stability and consumer protection. The proportionality principle should be applied to prudential rules, compliance, and KYC requirements to balance innovation and regulation effectively. --> MFW4A is working with its partners to strengthen compliance regulatory frameworks within the African financial sector trough initiatives such as the establishment of a Pan-African Network of Compliance Officers. 💡 What are your thoughts on scaling agricultural finance in Africa? Let’s continue the conversation in the comments! 👇

#MFW4ABlog Mainstreaming ESG frameworks in African Financial Systems – the case of Governance (G) 📢 In this month’s Making Finance Work for Africa (MFW4A) blog, our own Marina Finken highlights a crucial yet often overlooked aspect of sustainable finance—Governance (G). While Africa’s sustainable finance efforts have focused on environmental and social issues, strong governance is essential for long-term impact. Without good governance, environmental and social finance efforts will be undermined. 💡 The Opportunity: Sri Lanka’s recent Governance-Linked Bonds (GLBs) demonstrate how finance can drive governance improvements. Africa could leverage similar mechanisms to: ✅ Strengthen public sector debt sustainability ✅ Improve Development Finance Institutions (DFIs) ✅ Enhance SME access to finance As sustainability-linked bonds (SLBs) gain traction in Africa, integrating governance KPIs can promote transparency, accountability, and economic resilience. 🔗 Read the full blog here: https://lnkd.in/etVKTr7U #SustainableFinance #ESG #Governance #Africa

#MFW4AWebinars 🌿 Join Us for the Second NC4-ADF Webinar! 🌿 Don't miss the second session in our three-part webinar series exploring insights and key recommendations from the Natural Capital for African Development Finance (NC4-ADF) Programme. 📢 Webinar Topic: Natural Capital Tools and Approaches for Evaluating Investment Projects in Africa 🔎 What to Expect: ✅ Economic valuation of natural capital for investment decision-making ✅ Natural Capital Assessment for Development Corridor Projects – Case Study: SAPZ of the Pemba-Lichinga Integrated Development Corridor, Mozambique 📅 Date: March 13, 2025 🕒 Time: 1:00 pm (GMT) 🔗 Register Now: https://lnkd.in/dd2xqgwM This webinar series, hosted by the African Development Bank Group (AfDB), the Green Growth Knowledge Partnership (GGKP), the World Wide Fund for Nature (WWF), and the Secretariat of Making Finance Work for Africa (MFW4A), brings together key players in African finance to advance sustainable investment strategies. #NaturalCapital #SustainableFinance #NC4ADF #InvestmentAfrica Samantha Meyers Natalia Sanin-Acevedo Peter Scheren Durrel Halleson Wadzanai Mafunga-Yobe Dr. Kiruben Naicker Nuredin Juhar Marina Finken Grakolet Arnold Z. Gourène, PhD Brittany King

#MFW4APartnerNews This week's news: African Export-Import Bank (Afreximbank) has announced that Nigeria will host the 32nd Afreximbank Annual Meetings (AAM) in June 2025, expected to be the largest in the bank’s history. The event will bring together over 6,000 global stakeholders to discuss trade financing, economic growth, and investment opportunities across Africa. With the theme "Building the Future on Decades of Resilience," the meetings will highlight Africa’s progress, the impact of the African Continental Free Trade Area (AfCFTA) Secretariat, and strategies for strengthening the continent’s financial sector. 📖 See the full article here: https://lnkd.in/dqjaAyxe #Afreximbank #AAM2025 #TradeFinance #AfricanFinance #TradeInvestment #AfCFTA #PAPSS #Nigeria #EconomicGrowth

#MFW4ABlog 🌍 How to Finance Africa’s Climate-Resilient Infrastructure Africa, responsible for just 3.8% of global emissions, is bearing the brunt of climate change. Yet financing for climate-resilient infrastructure remains a major hurdle. With high debt levels and constrained access to capital, how can Africa mobilize the investment needed to safeguard its future? In our latest blog, Mma Amara Ekeruche, Chris Heitzig, Gracelin Baskaran, PhD, Aloysius Uche ORDU, and Lemma W. Senbet explore the three key ways the G20 can partner with Africa to unlock financing: ✅ Empowering PIDA—providing grant funding to expand bankable projects. ✅ Tackling donor fragmentation—enhancing coordination among climate financiers. ✅ Unlocking financial entrepreneurship—leveraging fintech and policy innovation. With 85% of global GDP and 80% of global emissions, the G20 has both the means and the motivation to support Africa’s climate resilience. 🌿 Read a full blog here: https://lnkd.in/dz9MFG8y #ClimateFinance #Africa #SustainableInfrastructure #G20 #Fintech #ClimateResilience

Check out this insightful from CGAP on innovative financing for inclusive credit fintech in Africa! https://lnkd.in/dGJzEsVU Last year, we published a blog by Marcus Fedder (https://lnkd.in/eGGQa8dD) discussing why African fintechs have yet to meet expectations in SME finance despite their immense potential. One key challenge identified was funding: “Fintechs generally do not have access to deposits, making funding expensive. Despite initial excitement, impact investors and DFIs are likely, in the medium term, to avoid fintech lenders that charge usury rates. But without funding, fintech lenders cannot grow their lending business.” This new CGAP paper delves into innovative financing mechanisms such as drawdown-on-demand senior debt, revenue-based financing (RBF), and asset-backed lending to tackle this critical issue. Key insight: While venture capital (VC) has traditionally been the go-to funding source, it is relatively inefficient and costly—unsuitable for growing loan portfolios. Instead, debt financing emerges as the most appropriate instrument for scaling a loan book. For early-stage credit fintechs with positive or improving unit economics, but not yet at breakeven, access to debt is becoming increasingly essential. At MFW4A, as a platform for knowledge dissemination, advocacy, and cooperation on the African financial sector, we are eager to contribute to dialogue and capacity building to scale up such innovative mechanisms.

🌍 Reminder: The first webinar is happening this Thursday, 30 January 2025! Join us for an engaging three-part webinar series on the outcomes and lessons from the Natural Capital for African Development Finance Programme (NC4-ADF), organized by the African Development Bank Group (AfDB), the Green Growth Knowledge Partnership (GGKP), the World Wide Fund for Nature (WWF), and the Making Finance Work for Africa (MFW4A) Partnership. The First Webinar: "Demystifying Natural Capital in the Context of the African Financial Sector" will explore: • The role of African finance and investment in natural capital • How DFIs can drive 'green' development • An introduction to the Natural Capital Academy 💡 Don’t miss this opportunity to learn, engage, and shape Africa’s sustainable finance future! 👉 Register here to join: https://lnkd.in/dwwFZPdq #NaturalCapital #SustainableFinance #Africa #NC4ADF Peter Scheren Innocent Onah, PhD Marina Finken Durrel Halleson Aaron Vermeulen Dorothy Maseke ,CFIRM Julie Havemann

🌍 Reminder: The first webinar is happening this Thursday, 30 January 2025! Join us for an engaging three-part webinar series on the outcomes and lessons from the Natural Capital for African Development Finance Programme (NC4-ADF), organized by the African Development Bank Group (AfDB), the Green Growth Knowledge Partnership (GGKP), the World Wide Fund for Nature (WWF), and the Making Finance Work for Africa (MFW4A) Partnership. The First Webinar: "Demystifying Natural Capital in the Context of the African Financial Sector" will explore: • The role of African finance and investment in natural capital • How DFIs can drive 'green' development • An introduction to the Natural Capital Academy 💡 Don’t miss this opportunity to learn, engage, and shape Africa’s sustainable finance future! 👉 Register here to join: https://lnkd.in/dwwFZPdq #NaturalCapital #SustainableFinance #Africa #NC4ADF Peter Scheren Innocent Onah, PhD

🌍 Webinar Series Alert 🌱 Join us again for an exciting three-part webinar series to explore the outcomes and lessons from the Natural Capital for African Development Finance Programme (NC4-ADF)! This series, organized in collaboration with the African Development Bank Group (AfDB), the Green Growth Knowledge Partnership (GGKP), the World Wide Fund for Nature (WWF), and the Making Finance Work for Africa (MFW4A) partnership, will share valuable insights and recommendations with Africa’s financial sector and other stakeholders. First Webinar: "Demystifying Natural Capital in the Context of the African Financial Sector" 🗓️ Date: Thursday, 30 January 2025 🔍 Topics: The role of African finance and investment in natural capital How African financial institutions can support 'green' development Introduction to the Natural Capital Academy Don’t miss this opportunity to engage with experts and shape the future of sustainable finance in Africa! 👉 To join, register here: https://lnkd.in/dzRQ6Cq7 #NaturalCapital #SustainableFinance #Africa #NC4ADF Peter Scheren Innocent Onah, PhD

🎉 Welcome Back! As we kick off 2025 with renewed energy and purpose, let’s dive into the opportunities that lie ahead for sustainable finance in Africa! Making Finance Work for Africa (MFW4A) is proud to support the strategy implementation of the African Financial Alliance on Climate Change (AFAC) and AFAC's efforts to develop a Sustainable Finance Taxonomy for the African Financial Sector. We are delighted to invite you to an exciting webinar on January 23, 2025, from 11 am to 12:30 pm (GMT) to disseminate the findings of this exercise. This webinar on Developing a Sustainable Finance Taxonomy for the African Financial Sector marks an important milestone in aligning Africa’s financial systems with global sustainability goals. The webinar will: ✅ Disseminate key findings from stakeholder workshops and benchmarking exercises. ✅ Promote awareness of the taxonomy design process and engage a wider range of stakeholders. ✅ Highlight initial scoping decisions and discuss potential barriers to adoption. Let’s make 2025 the year we take bold steps toward building a sustainable financial future for Africa! 📅 Save the date, join the discussion, and be part of this transformative journey. 💻 Register here to join: https://lnkd.in/dr-U2WKe #SustainableFinance #AFAC #MFW4A #ClimateAction #Africa #ESG David Ashiagbor Cecilia Bjerborn Murai Jonathan Israel Zillah Malia Dr. Monday Utomwen Timothy Afful-Koomson, PhD davinah uwella Marina Finken