Financial institutions, financial disclosures, and Africa’s transformation. May 27 2024 | Nairobi, Kenya
At the 2024 AfDB Annual Meetings, an official side event, entitled ‘Financial Institutions, Financial Regulations and the Financial Architecture for Africa’s Transformation’ was held, co-organised by GFANZ Africa Network, AfDB, AFAC, UN Climate Change High-Level Champions, UNEP-FI and the ISSB. This session brought together ministers from African nations, governors and supervisors of national financial regulatory bodies, and leaders of financial institutions across the continent to share experiences, national perspectives and positions underlying climate-related risk policies and regulatory frameworks.
The opening and keynote sessions were delivered by Dr. Mahmoud Mohieldin, UN Climate Change High-Level Champion for COP27, UN Special Envoy on Financing the 2030 Sustainable Development Agenda, Chair of GFANZ Africa Network Advisory Board, Dr. Rania A. Al-Mashat, Minister of International Cooperation, Egypt, Kevin Kariuki, Vice-President for Power, Energy, Climate and Green Growth, AfDB , Emmanuel Faber, Chair, ISSB senior representatives and heads of institutions from of the Glasgow Financial Alliance on Net Zero (GFANZ) The Ministry of International Cooperation of Egypt and the International Sustainability Standards Board (ISSB) and The African Development Bank. The opening speakers all highlighted the importance of mobilizing private climate finance for Africa's NDC commitments under the Paris Agreement. They also noted the challenges posed by Africa's high debt burden and the unfavourable global capital market conditions, while stressing the need for comprehensive reforms to the global financial architecture to increase Africa's share of global climate capital flows from the current low level of 2.5%.
The opening speakers agreed on the on the importance of enhancing transparency within Africa's capital markets and value chains by accelerating the adoption the ISSB Standards IFRS S1 and S2, which establish a global baseline for sustainability-related disclosures. Additionally, they emphasized the crucial role of AFAC partner organizations in expanding access to capacity building, technical assistance, and training material development, for instance, through initiatives like Bloomberg’s Global Capacity Building Coalition. The opening session concluded with the signing of a Letter of Intent between the African Development Bank towards enhancing sustainable finance and governance frameworks within Africa.
The Panel session, moderated by Moderated by Dr Ndidi Nnoli-Edozien, ISSB Board member was constituted by Hassatou N’Sele, CFO and Vice President Finance, AfDB, Simon Zadek, Co-CEO of Nature Finance, Samaila Zubairu, President and CEO of Africa Finance Corporation and Ugas Shiekh-Mohamed, Chairman, Capital Markets Authority, Kenya. The discussion centred on the critical reforms needed for African countries to fulfil their investment potential in the global energy transition. The panelists recognized the business case for adoption of ISSB standards, particularly with the potential for further innovation in natural resource accounting. Adequately harnessing Africa's would ensure that disclosures unlock capital flows.
Key Take Aways
1. First, there is a great sense of accumulation, continuity and implicit accountability in the discussions, since the African Finance Ministers meeting.
2. specialist working groups have already formed around key themes such as regulatory reforms, climate risk disclosure, capacity building and mobilisation of green capital.
3. Third, there is a strong sense of partnership and collaboration, exemplified in the session by the signing of the AfDB ISSB Letter of Intent. Through IOSCO’s endorsement of the ISSB Standards, there is a strong call for its over 130 member jurisdictions to consider ways in which they adopt, apply or otherwise be informed by the ISSB Standards.
Signing ceremony of a Letter of Intent between the ISSB and AfDB, Nairobi – 28th May 2024
