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Dr. Hubert Danso

CEO and Chairman, Africa investor (Ai) Group
Chairman of the CFA New York Society Global Asset Owners’ Advisory Council
Chairman of the African Sovereign Wealth & Pension Fund Leaders Forum
Chair, African Union ’s (AU) Heads of State Continental Business Network (CBN)

 

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Natural Capital on African Governments’ Balance Sheets initiative introduced at COP16

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The Sustainable Markets Initiative (SMI) Africa Council has unveiled a new initiative aimed at making natural assets a core component of national balance sheets.

The Natural Capital on African Governments’ Balance Sheets initiative is an institutional investor-public partnership led by the SMI Africa Council, which brings together institutional, technology and legal partners such as the African Union Commission, Africa Investor Group, the Great Green Wall of Africa Foundation, AUDA-NEPAD, the Landbanking Group and Mishcon de Reya.

The Natural Capital on African Governments’ Balance Sheets initiative was announced at COP16, currently taking place from Oct. 21 to Nov. 1 in Cali, Colombia.

This initiative will embed nature as an investable asset class within national economic frameworks and investment portfolios to unlock real investments at scale.

Globally, there is a potential $800 billion annual investment opportunity in nature-based solutions, as Africa’s forests, wetlands and biodiversity play a vital role in global decarbonization. Yet, they remain undervalued in traditional economic models, and businesses and investors lack the means to invest with scale into the ecosystems they depend on.

Some of the major barriers include the lack of standardized methodologies for valuing natural capital and the absence of market mechanisms that align business and investor incentives with natural capital preservation and regeneration. It is believed unlocking their value will provide new sources of wealth for Africa by integrating natural resource accounting and developing national standards.

The SMI initiative seeks to accelerate the implementation of the African Union’s Nairobi Declaration (Africa’s Green Investment Deal) launched by African heads of state at the inaugural Africa Climate Summit in Nairobi in September 2023.

“Africa’s natural capital forms the backbone not only of our economies but also of global business models and societies.To protect and expand this value, we must invest at scale in our ecosystems. Through mandate-aligned institutional investor-public partnerships with governments, we can unlock risk- and nature-adjusted returns that drive benefits for people, planet and nature — demonstrating that what’s good for Africa and the world can also create sustainable value for investors.” said Dr. Hubert Danso, co-chair of the SMI Africa Council.

SMI Africa Council Announces Groundbreaking “Natural Capital on African Governments’ Balance Sheets” Initiative at COP16 in Columbia

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Oct 2024, Cali, Colombia – The Sustainable Markets Initiative (SMI) Africa Council (SMIAC) today unveiled the “Natural Capital on African Governments’ Balance Sheets” initiative at COP16. Launched last week at the Commonwealth Heads of Government Meeting in Samoa, this bold SMI initiative aims to align natural capital with national economic frameworks, accelerating the implementation of the African Union’s Nairobi Declaration (Africa’s Green Investment Deal) launched by African Heads of State at the inaugural Africa Climate Summit in Nairobi, September 2023.

The Nairobi Declaration on Climate Change called on global public and private sector stakeholders, to revalue Africa’s Gross Domestic Product (GDP) by fully recognizing the continent’s vast natural capital and ecosystem services. Africa’s forests, wetlands, and biodiversity play a vital role in global decarbonization, yet remain undervalued in traditional economic models. Unlocking their value will provide new sources of wealth for Africa by integrating natural resource accounting and developing national standards.

Natural Capital: Africa’s Economic Opportunity and the World’s Climate Investment Solution

The Natural Capital on African Governments’ Balance Sheets initiative is an institutional investor-public partnership, led by the SMI Africa Council. This initiative will embed nature as an investable asset class within economic frameworks and investment portfolio’s, to unlock real investments at scale, making natural assets a core component of national balance sheets.

“Africa’s natural capital forms the backbone not only of our economies, but also of global business models and societies,” said Dr Hubert Danso, Co-Chair of the SMI Africa Council. “To protect and expand this value, we must invest at scale in our ecosystems. Through mandate-aligned institutional investor-public partnerships with governments, we can unlock risk-and nature-adjusted returns, that drive benefits for people, planet, and nature—demonstrating that what’s good for Africa and the world, can also create sustainable value for investors.”

Despite the global reliance on Africa’s natural resources, current investments are grossly insufficient. Barriers include the lack of standardized methodologies for valuing natural capital and the absence of market mechanisms that align business and investor incentives with natural capital preservation and regeneration.

Closing the $800 Billion Annual Investment Gap

Globally, there is a potential $800 billion annual investment opportunity in nature-based solutions. However, businesses and investors currently lack the means to invest scalably into the ecosystems they depend on.

For decades, the global economy has benefited from Africa’s “Global Commons”—its forests, wetlands, and biodiversity—without fully recognizing their economic value, leaving fiscally challenged African countries to navigate the difficult balance between driving economic growth and safeguarding, while expanding, their natural capital.

The Terra Carta, SMI’s guiding framework, aligns with the Nairobi Declaration’s goals by recognizing nature as the true engine of the global economy.

In the initiative’s foreword, His Majesty King Charles III, founder of the Sustainable Markets Initiative (SMI), stressed, “To build a productive and sustainable future, it is critical that we accelerate and mainstream sustainability into every aspect of our economy. There must be a center of gravity to catalyze this effort and mobilize the resources and incentives required.”

A Global Call for Investment into Africa’s Natural Capital

Commenting on the initiative, H.E. Josefa Leonel Correia Sacko, Commissioner for Agriculture, Rural Development, Blue Economy, and Sustainable Environment at the African Union Commission (AUC), We welcome the SMI Africa Council’s ‘Nature on the Balance Sheet’ initiative. By embedding nature on the balance sheet, we are making a clear statement: Africa’s natural wealth is a strategic asset for both the continent and the world. This approach not only protects biodiversity but also drives sustainable economic growth and resilience.”

Initiative Focus Areas

The SMI Africa Council’s initiative aims to:

  • Develop a portfolio of high-quality, landscape-level natural capital projects in Africa, using latest technology and new institutional investor-public partnership frameworks and market mechanisms.
  • Support African governments and regional institutions in leveraging natural capital projects to attract private investments.
  • Collaborate with the international community to create enabling conditions for scaling natural capital asset classes globally.

The initiative is designed to assist African governments mobilize private capital at scale, reduce their cost of capital and improve sovereign ratings.

A Global Coalition to Align Growth with Nature

The SMI is building a coalition of investors, philanthropies, private sector actors, project developers, and NGOs, to co-create solutions that bring Africa’s natural capital onto the balance sheet.

At the 2025 Africa Climate Summit, the initiative plans to announce partner commitments from international and domestic investors, businesses and philanthropies, to protect and regenerate African landscapes, ensuring nature conservation, economic growth and portfolio resilience go hand in hand.

Join the Movement

This SMI initiative, which brings together institutional, technology, and legal partners such as the African Union Commission (AUC), Africa Investor (Ai) Group, The Great Green Wall of Africa Foundation, AUDA-NEPAD, The Landbanking Group and Mishcon de Reya LLP, offers a transformational opportunity to position Africa as a central player in the global green investment economy.

If you are interested in joining this effort, please register your interest at africa@sustainable-markets.org.

Media Contact:
For inquiries, please contact:
africa@sustainable-markets.org

About The Sustainable Markets Initiative (SMI) – www.sustainable-markets.org

Established by His Majesty King Charles III and launched at Davos, The Sustainable Markets Initiative (SMI) is the ‘go-to’ CEO-led private sector organisation on the transition to a sustainable future.

About The SMI Africa Council (SMIAC)

The SMI Africa Council (SMIAC) was led by His Majesty King Charles III in recognition of the current realities of the African continent’s 1.3 billion people, and the shared ambition of its 55 countries to establish a common position through the Nairobi Declaration (Africa’s Green Investment Deal) in combatting climate change, biodiversity loss and fulfilling its Nationally Determined Contributions (NDCs) and the Sustainable Development Goals (“SDGs”).

Launched in November 2023 in Nairobi, Kenya, the SMIAC champions scalable collective action by business, finance/investment and governments leaders to benefit  people, planet and nature.

Sustainable Markets Initiative unveils support to Commonwealth Member States at CHOGM

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In support of His Majesty King Charles III’s visits to Australia and Samoa, for the Commonwealth Heads of Government Meeting (CHOGM), SMI launches further support for Commonwealth Member States

  • Pacific Hub launched in Australia to enhance alignment of industry, finance and country efforts to accelerate delivery on global climate and biodiversity targets.
  • Marine Mangrove Sanctuary launched in partnership with SpaceX and Rotary International in Samoa to restore mangrove ecosystems, mitigate sea level rise, increase community connectivity and preserve cultural heritage for future generations.
  • Private Sector Training Programme for government officials extended to enhance public-private partnerships and project delivery in the Commonwealth.
  • SMI’s Impact Accelerator, along with a recommendation to establish High-Level Climate Investment Authorities, launched to provide end-to-end support for governments to develop industry partnerships and investment ready projects aligned with sustainable transition. 
  • The SMI’s Nature-Risk Tool, developed by AECOM, has been made available to all Commonwealth member states to assist them in assessing Nature-risks associated with physical infrastructure and urban planning.
  • The Natural Capital on African Governments’ Balance Sheets Initiative launched to explore making natural capital assets as a core component of national balance sheets.

In the presence of His Majesty King Charles III, as well as leaders from the Commonwealth as part of the Commonwealth Heads of Government Meeting’s Business Forum, the Sustainable Markets Initiative (SMI) has launched several initiatives to further enhance its commitment and support to Commonwealth Members States.

  • Pacific Hub: Connecting SMI’s global CEOs with CEOs and climate leaders in Australia, the SMI launched its Pacific Hub to enhance alignment of industry, finance and country efforts to accelerate delivery on global climate and biodiversity targets.
  • Marine Mangrove Sanctuary: In collaboration with Rotary International and Space X, the SMI is launching a Marine Mangrove Sanctuary in Samoa to restore and maintain the mangrove ecosystem, mitigating sea level rise and preserving cultural heritage.
  • Private Sector Training Programme: SMI introduces a climate-based training programme for government officials in Commonwealth Member States. This programme will support the delivery of climate and biodiversity-related projects and the implementation of Nationally Determined Contributions.
  • Impact Accelerator:  SMI launches its Impact Accelerator for Commonwealth Member States which provides end-to-end support for Governments to develop industry partnerships and investment ready projects aligned with sustainable transition.  The SMI further recommends establishing High-level Climate Investment Authorities within governments to better coordinate and crowd-in private sector support and investment.
  • Nature Risk Tool: SMI’s Nature Risk Tool, developed by AECOM, will now be available to all Commonwealth nations to assess the impact of infrastructure on local biodiversity globally.
  • The Natural Capital on African Governments’ Balance Sheets Initiative was launched as an institutional investor-public partnership, led by the SMI Africa Council. This initiative aims to embed Nature as an investable asset class.

 

Jennifer Jordan-Saifi M.V.O., CEO of the Sustainable Markets Initiative, emphasised the urgency of these initiatives: “It is an honour to be in Samoa for the Commonwealth Heads of Government Meeting (CHOGM). Being welcomed into the community of Nono’a Saleimoa to launch their Mangrove Sanctuary, we saw first-hand how Pacific communities are on the front lines of climate change and biodiversity loss. With future generations in mind, we also saw the passion of community members for restoring harmony with Nature.  The SMI is delighted to bring private sector CEOs together with Commonwealth governments at CHOGM, and through our new Pacific Hub, to accelerate practical, scalable actions that advance a genuinely sustainable future for all.”

Recognizing the importance of biodiversity restoration across the Commonwealth, Dr Hubert Danso, Co-Chair of the SMI Africa Council, highlighted that Africa’s natural capital forms the backbone not only of our economies, but also of global business models and societies. To protect and expand this value, we must invest at scale in our ecosystems. Through mandate-aligned institutional investor-public partnerships with governments, we can unlock risk and Nature-adjusted returns, that drive benefits for Nature, people and planet.  Through these efforts we aim to demonstrate that what’s good for Africa and the world, can also create sustainable value for investors.”

Pacific Hub

The new SMI Pacific Hub, is the latest addition to the Sustainable Markets Initiative’s regional engagement activities, joining a cohort of five other Hubs and Councils including North AmericaAfricaChinaIndia, and Greece.  As part of its regional and country approach, the Pacific Hub will provide a forum for CEOs to look more practically at sustainability efforts across industry and finance while exploring how the region’s private sector is actively working with governments to support Nationally Determined Contributions (NDCs) and biodiversity targets in the region.

Marine Mangrove Sanctuary

The Sustainable Markets Initiative announces the Marine Mangrove Sanctuary in collaboration with Rotary International and SpaceX. The sanctuary in Nono’a Saleimoa, Samoa will restore and maintain the mangrove ecosystem to mitigate the onset of sea level rise.  Starlink will enable project leads to record, in real-time, key data points regarding the progress of the project such as: number of mangrove seedlings planted, growth of seedlings, time spent planting and maintaining the site, and general updates from site visits. The project demonstrates the value of remote access connectivity to support underserved and remote communities across the Commonwealth. The SMI’s partnership with Starlink includes a focus on rapidly scaling support for Nature-capital and post-disaster monitoring.

Government Training Programme

The Sustainable Markets Initiative will now offer Commonwealth Member States access to its highly successful Government Training Programme, which has so far had over 800 participants from over 85 countries register worldwide. The programme has convened subject matter experts from across the public and private sectors along with non-governmental organisations to develop climate-based training that can help support government officials (and others) responsible for delivering and developing climate-related projects and the implementation of Nationally Determined Contributions (NDCs).

SMI Impact Accelerator and High-Level Climate Investment Authority

The SMI also offers support through its Impact Accelerator.  The private sector is ready to mobilize capital, however to date there is a limited pipeline of “investment-ready” projects. The Sustainable Markets Initiative strives to fill this gap by offering end-to-end support for project development, industry partnerships and capacity building.  Recognizing the urgency and complexity of public-private partnerships for transition, we strongly recommend that High-Level Climate Investment Authorities (HCIA) be established to offer an empowered and coordinated docking point that is focused on private sector partnerships and capital mobilization.  The SMI has a range of guidance available on how to best establish these HCIAs.

SMI Nature Risk Tool

The Sustainable Markets Initiative has recently launched its SMI Nature Risk Tool and is now offering it to all Commonwealth Member States.  The SMI Nature Risk Tool recognizes that infrastructure development often leads to habitat loss, biodiversity decline, pollution, and increased greenhouse gas emissions. Powered by AECOM, and using datasets from the Taskforce for Nature-related Financial Disclosures (TNFD), the SMI Nature Risk Tool enables infrastructure investors and promoters to analyse any piece of land globally, providing expert-reviewed descriptions of the location’s habitat and biomes early in the site selection process.

GEMs Consortium Issues More Granular Data; Critics Seek More Transparency

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The Global Emerging Markets Risk Database (GEMs) Consortium Oct. 15 reported on country-by-country loan default and recovery rates for the first time, but the Consortium has still not met the key transparency demand: making the database accessible.

The new data was called insufficient by critics in the private and nonprofit sector who say that issuance of more detailed information is necessary to boost lending to Emerging Market and Developing Economies (EMDEs).

GEMs said it is issuing “increasingly granular statistical publications,” but its future plans remain unclear.

The latest information came in two reports, released by the European Investment Bank, which administers the GEMs database. (See press release.) The GEMs data comes from 26 multilateral development banks (MDBs) and development finance institutions (DFIs) that pool their data using a harmonized template. The GEMs database is used by the 26 institutions, whose representatives jointly make decisions about its transparency.

Transparency Levels Debated

The lingering issue is how much data should be made available.

There is widespread agreement that more information would benefit EMDEs by providing investors “greater insights into credit risks in emerging markets, thereby allowing them to better guide their asset allocations,” as the GEMs press release puts it.

But the “piecemeal approach” was sharply criticized by Hubert Danso, Chief Executive Officer and Chairman of African Investor, an institutional investment holding platform based in South Africa.

“While today’s reports, conveniently timed to deflect criticism during the World Bank Annual Meetings, provide fragmented insights using GEMs data, they unfortunately miss the mark,” Danso told Eye on Global Transparency. The Bank and the IMF meetings will be held Oct. 21-26 in Washington.

Similarly, Karen Mathiasen, project director with the Center for Global Development, a Washington-based think tank, said that “for GEMS data to be of real use to the private it needs to include breakdowns by country and sector.”

The push from more detailed transparency has arisen from many quarters, but perhaps most significantly from the Group of 20 developed countries. Transforming GEMs into a free-standing entity “by 2024” was proposed. A 2022 report to the G20, called the Capital Adequacy Framework (CAF) review, said GEMs should “publish more granular statistics and analysis of the data showing credit performance for sovereign and private sectors by sector, countries or country groups, and regions.” The report further prescribed that GEMs should “share anonymized statistics with private investors and ratings agencies.” In addition, it said, GEMs should “provide risk analytics, charging fees as needed.” A new G20 action plan for the MDBs is being developed and could include more specific goals.

The Development Committee of the World Bank Group, in a wide-ranging statement issued April 19, 2024, stressed that. private capital mobilization “will be instrumental in meeting development financing needs.” Among other steps to this end, the Development Committee “applauded the publication of additional data from the Global Emerging Markets Risk (GEMs) database and statistics on the WBG’s default and recovery rates and look forward to further disaggregation, including by country and sector.”

The GEMs consortium, while providing reports with gradually increasing levels of granularity last year and this, has been circumspect about its long-term goals. In the Oct. 15 press release, Román Escolano, Group Chief Risk Officer, European Investment Bank, said, “The updated publications, with greater disaggregation and analysis, address feedback from our key stakeholders, and GEMs plans to continue publishing such statistics in a timely manner.”

Learning about future plans is complicated because the Consortium holds closed meetings and does not release any documents about them, including minutes.

The EIB denied EYE’s request for access to the minutes of the GEMs key decision-making body, the General Assembly. The EIB said disclosure of the minutes would “seriously undermine” its work and subject officials to “external pressure.” (See EYE article.) EYE appealed the denial but the EIB has yet to issue a decision. EYE also appealed the EIB’s decision to keep secret key parts of 2019 GEMs data-sharing agreement between the EIB and ILX Management, a Dutch investment company. This appeal is also pending. (See EYE update.)

Oct. 15 Report Provides More Data

The GEMs Consortium said that both of the new reports would benefit investors and that they show that “emerging market investments should be within the risk appetite of a broad range of investors,” in the words of Federico Galizia, Vice President, Risk and Finance, International Finance Corporation.

As summarized by the EIB:

The first publication covers the credit performance of lending to private and public counterparts. The average annual default rate of lending to private entities at 3.56% is broadly aligned with many non-investment grade firms in advanced economies, and the average recovery rate of 72.2% is higher than many global benchmarks. Although the GEMs statistics reflect the unique experience of MDBs and DFIs, these results provide valuable information on the investment risk in EMDEs, an area characterized by a lack of available credit risk data.

The second publication provides default rates and – for the first time – recovery rates for sovereign and sovereign-guaranteed lending based on an expanded range of 40 years of data. Results shows an average annual default rate of 1.06% and an average recovery rate of 94.9% and complement the GEMs statistics on private and public counterparts to provide a comprehensive view on EMDEs credit risks.

Danso Sees “Fiduciary Negligence’

Danso said, “This piecemeal approach distracts from the core issue: the urgent need for the full implementation of the GEMs2.0 directive, as mandated by the G20 for rollout in 2024.”

“Anything less,” he continued, “postpones the structural transparency required to properly price risks in emerging markets and developing countries (EMDCs), further hindering scaled efforts to crowd in private capital.”

According to Danso, “The absence of a fully operational GEMs2.0 database (which is a no cost reform for MDBs and the GEMs Secretariat), costs developing countries over $15.6 billion annually in avoidable cost of capital premiums and lost opportunities.”

Without this database, he said, “the current data landscape offers limited practical value for pricing risks and making informed investment decisions” and “EMDCs are likely to endure another year of inflated capital costs, just as official development assistance (ODA) declines and fiscal constraints deepen.”

Danso said, “The reluctance within MDBs to fully embrace their mandated responsibility to crowd-in private capital reflects not just a breach of mandate, but also erodes trust with their sovereign members and clients. Such fiduciary negligence by both the MDBs and the GEMs Secretariat compromises global financial stability and sustainable development—precisely when their most vulnerable and fiscally constrained clients need it most.”

The magic pony of private finance fails to fund the global green transition

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By now it’s a well-established pattern. A bright-eyed new World Bank president, the current one being the former Mastercard CEO Ajay Banga, comes in promising to leverage judicious injections of public money to unlock the vast reserves of private sector cash itching to invest in infrastructure in developing countries. The plan is hailed as a bold new market-led approach to helping poor countries get rich. And then it doesn’t really happen. This pattern stretches back through David Malpass, the bank’s president from 2019-2023, Jim Yong Kim (2012-2019), Robert Zoellick (2007-2012) and ultimately to the 1990s when James Wolfensohn, one of the bank’s most influential presidents, sought to tap the gushing rivers of capital in the post-cold war surge in globalisation. The challenge of getting private finance to build infrastructure is even now more acute because of the green transition to renewable energy and low-carbon technologies.

Traditionally generous donor countries — the UK, France, Norway — are cutting aid budgets. Instead, they often concentrate on “development finance institutions” (DFIs) such as the UK’s British International Investment company. By far the largest DFI is the World Bank’s International Finance Corporation (IFC). The DFIs lend or take equity stakes in businesses in developing countries and aim to “crowd in” private capital. The results have been consistently disappointing. A forthcoming book by the former World Bank economist James Leigland on the rise and fall of public-private partnerships (PPP) notes that private contributions to developing-country infrastructure projects peaked at a low level in 2012 — with only 10 per cent going to the lowest-income nations — and have fallen since. They have had relative success in some sectors such as renewable energy generation but had difficulties in others.

An independent expert group on the multilateral development banks commissioned by the G20 leading economies suggests achieving $240bn in private capital mobilisation by 2030. The latest figure is just $71.1bn, of which again only 10 per cent went to the poorest countries. The DFIs aim to leverage substantial multiples of the money they put in, but in practice the ratio of private to public capital has struggled to rise above 1:1. Institutional investors like pension funds are notable by their almost total absence. Whereas Australian and Canadian pension funds are active in infrastructure finance in advanced economies, for developing countries they have historically had a pitiful share in total investments of less than 1 per cent.

 

Why? Undoubtedly there are some fixes that could be tried. Avinash Persaud, special adviser at the Inter-American Development Bank (IDB) who worked on the Bridgetown Initiative to increase capital flows to developing countries, argues for creating a facility to reduce currency risk for investments. Investment managers say there is a deeper problem — that DFIs at heart act like private investors, not catalysts for other investments, and their bureaucratic processes deter rather than attract other funds. Infrastructure investment is intrinsically tricky. It’s typically long-term and involves political as well as commercial risk, especially with essential public utilities like power and water, and hence requires detailed information and precise regulation in the recipient country.

The aid transparency initiative Publish What You Fund has released a report arguing for granulated disclosure of data at a project level to inform private investment decisions, which it says the IFC and DFIs have been slow to do. Institutional investors such as AllianzGI and Africa Investor back the PWYF conclusions.

Hubert Danso, chief executive of Africa Investor Group, says: “A stable legal and regulatory framework and better data are far more important than multilateral development banks, which are often better at crowding out private capital than crowding it in.”

He and PWYF reject the IFC’s argument that publishing such data threatens commercial confidentiality. Development banks and their shareholders have a long-standing tendency to judge themselves on how much money they get out of the door rather than what it does when it arrives. For DFIs, that is a particularly unfortunate mentality since they are supposed to be opening the door for others. But even more fundamentally, official lenders and governments should be more realistic about what private finance can achieve in infrastructure.

It’s somewhat ironic that the UK in particular has been so keen to push PPP in developing countries, since Britain’s own experiences in the area have not exactly been joyful. A decades-long experiment, the Private Finance Initiative, had extremely mixed results and was terminated by the Conservative government in 2018. Writing contracts that created incentives to invest and genuinely shifted risk to private investors proved to be very difficult. A summit held in London this week to encourage private investors to fund British infrastructure anew was clouded by questions about lack of clarity and the UK’s business climate, with the government feebly resorting to the tired old mantra about tearing up bureaucratic red tape.

It’s admirable in principle to encourage private investors into infrastructure in lower-income as well as higher-income economies. But continually announcing bold initiatives and talking in the hundreds of billions of dollars without creating appropriate incentives will only breed cynicism. If the world is to achieve its targets for the green transition, there is likely to be no magic alternative to having public money doing a lot of the work. Pretending otherwise does few favours to anyone, least of all developing countries themselves.

Global Investors Back African NDCs as Platform to Build a World-Leading Green Technologies Manufacturing Hub

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New York, September 24, 2024
Global institutional investors, representing over $50 trillion in assets as universal owners, have committed to supporting Africa’s Nationally Determined Contributions (NDCs) by assisting governments in transforming them into investable, bankable projects.

At the African NDC Institutional Investment Summit, held during New York Climate Week alongside the UN General Assembly, institutional investors, governments, and philanthropies explored Africa’s $3-7 trillion NDC opportunities. The goal is to position the continent as an investable global green technologies manufacturing hub and a central player in the $10 trillion per annum green industrial economy and value chains.

The Summit, hosted by The Sustainable Markets Initiative (SMI)and Africa investor (Ai), was themed: “Aligning Private Capital Mobilization at Scale with Africa’s NDCs, the Nairobi Declaration, and the Sustainable Development Goals (SDGs).”

At the 37th African Union Heads of State Summit, African leaders stressed the urgent need to mobilize private capital to finance Africa’s $3 trillion NDC climate and sustainable development projects by 2030. With multilateral concessional loans addressing only 10% of the continent’s private financing gap, the Summit reinforced the critical role of institutional investors in realizing Africa’s green transition and advancing the goals of the Nairobi Declaration through scaled private capital mobilization to green risk-adjusted portfolios.

In response, the SMI Africa Council (SMIAC), in collaboration with Africa investor (Ai), launched the Investable Asset Classes Working Group initiative, to establish African green industrial infrastructure as a globally competitive investable asset class. This initiative brings together the world’s largest institutional investors, philanthropies, investment consultants, and corporate demand coalitions to attract domestic and global private capital at scale, co-create bankable NDC investment programs, and unlock the full potential of African natural capital on government balance sheets.

The African NDC Institutional Investment Summit showcased strategies for private capital mobilization through Institutional Investor-Public Partnerships (IIPPs) and innovative blended investments designed to decarbonize industries and build Africa’s green industrial base. Investors and leaders agreed that Africa is uniquely positioned, through IIPPs, to capitalize on the growing global green industrial economy, given its vast renewable energy resources and commitment to sustainable development.

Summit Partners included the CFA New York Asset Owners Council, the African Union Development Agency (AUDA) Continental Business Network, the Economic Commission for Africa (ECA), the NDC Partnership, and the African Green Infrastructure Investment Bank (AfGIIB).

Key Summit Outcomes focused on:
•⁠ ⁠Establishing African green industrial infrastructure and natural capital as a globally competitive investable asset class.
•⁠ ⁠Co-creating bankable NDC investment programs and risk-adjusted portfolios aligned with the Nairobi Declaration.
•⁠ ⁠Promoting data democratization to transform the MDB’s GEMs2.0 risk database into GEMs3.0 as an asset allocation at-scale platform.
•⁠ ⁠Aligning and mobilizing philanthropic, private, and public capital at scale and speed through IIPPs and innovative blended investments.
•⁠ ⁠Expanding Africa’s participation in the $10 trillion per annum global green industrial economy through long-duration bankable offtakes, offering sustainable and climate-adjusted returns for investors.

Speaking on the Summit, Dr Hubert Danso, Chair, Africa investor and Co-Chair SMI Africa Council, explained, “This historic African NDC’s Institutional Investment Summit of the world largest universal owners, the African Union, African governments, philanthropies, and the private sector, squarely responds to African Union Heads of State call for institutional investor-public partnerships through the continents revised NDCs, to accelerate Africa’s just energy transformation and decarbonize the world at industrial for the benefit of people, planet and nature”.

The Summit reaffirmed that Institutional Investor-Public Partnerships (IIPPs) and long-duration bankable offtake agreements are the investable pathway for global investors and philanthropies to support Africa’s just energy transformation and establish African green industrial infrastructure as a globally competitive investable asset class through its NDCs. These partnerships support the African Union’s ambitions, as outlined in the Nairobi Declaration, to position Africa as a world leader in green technologies manufacturing and value chains for the $10 trillion per annum and growing global green industrial economy.

African NDC Investment Award Winners Unveiled at UN New York Climate Week

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24 September 2024, NDC Awards Media: Dubai, Johannesburg, Nairobi, Lagos, Washington, Brussels, Beijing

The African NDC Investment Awards Secretariat proudly announced today the recognition of African governments and business leaders at the Africa Investor (Ai) NDC Investment Awards, held on September 24th, 2024, during New York Climate Week at the African NDC Institutional Investment Summit.

These timely NDC Investment Awards, sponsored by the African Green Infrastructure Investment Bank (AfGIIB), were established to celebrate outstanding achievements across the primary sectors of Nationally Determined Contributions (NDCs). The awards honor governments, investors, development partners, private sector entities, philanthropies, and Presidential Climate Investment Champions who are driving investments and enhancing the readiness and ambition of Africa’s NDC projects, which collectively require between $3 trillion and $7 trillion by 2030.

The awards ceremony convened dignitaries and numerous leaders from public, private, and philanthropic investment sectors across Africa and around the globe, demonstrating an unwavering commitment to addressing Africa’s NDC investment opportunities at the scale required.

Commenting on the Ai NDC Investment Awards announcement, Dr. Hubert Danso, Chairman of the Africa Investor Group and Chair of the NDC Awards Adjudication Panel, stated:

“Africa Investor (Ai) is proud to leverage its global investment platform to showcase and recognize the efforts of African governments, investors, development partners, the private sector, philanthropies, and our esteemed Presidential Climate Investment Champions. This growing community of leaders is pivotal to mobilizing the necessary $3 trillion in green investments for our NDCs by 2030, propelling Africa towards an equitable and investable energy transition which benefits people, planet, and nature.
We congratulate all shortlisted and winning candidates for their inspiring climate investment leadership.”

Now in their third year, these awards were initially launched at the Commonwealth Heads of Government Meeting in Kigali in 2022 and have since gained prominence, with presentations at COP27 in Egypt and COP28 in Dubai.

The 2024 African NDC Investment Awards honored several distinguished leaders:

Presidential Green Industrialization Investment Statesman of the Year
• H.E. Dr. William Samoei Ruto, President of the Republic of Kenya

Presidential Green Infrastructure Investment Statesman of the Year
• H.E. Mohamed Ould Ghazouani, President of the Islamic Republic of Mauritania

Presidential Just Transition Investment Statesman of the Year
• H.E. Bola Tinubu, President of the Federal Republic of Nigeria

Presidential Carbon Investment Initiative Statesman of the Year
• H.E. Denis Sassou Nguesso, President of the Republic of the Congo

Presidential Transport Investment Statesman of the Year
• H.E. Joao Lourenco, President of the Republic of Angola

Presidential Water Investment Statesman of the Year
• H.E. Prithvirajsing Roopun, President of the Republic of Mauritius

Presidential Agriculture Investment Statesman of the Year
• H.E. Samia Suluhu Hassan, President of the Republic of Tanzania

Presidential Energy Investment Statesman of the Year
• H.E. Julius Maada Bio, President of the Republic of Sierra Leone

In addition to honoring the Presidential Champions, the Awards also recognized outstanding NDC projects and initiatives, with winners in the following categories:

  • Best Waste NDC Investment Initiative of the Year: Cape Town Waste Management Strategy, City of Cape Town’s Directorate of Urban Management
  • Best Energy NDC Investment of the Year: Microsoft and G42 AI Kenya Renewables Investment Programme
  • Best Transport NDC Investment Initiative of the Year: The Lobito Corridor Investment Promotion Authority
  • Best Forestry NDC Investment Initiative of the Year: Republic of Congo Forest Management Program, Ministry of Forest Economy of the Republic of Congo
  • Best Financeable NDC City Investment Initiative of the Year: Casablanca Urban Green Spaces Project, Casablanca Urban Agency
  • Best GreenTech NDC Investment Initiative of the Year: M-KOPA Solar, International Finance Corporation (IFC)
  • Best Agriculture NDC Investment Initiative of the Year: Low Carbon Transformation of the Rwandan Tea Processing Sector, Green Climate Fund (GCF)
  • Best Health NDC Investment Initiative of the Year: Nigerian Climate-Resilient Health Initiative, World Health Organization (WHO)
  • Best Water NDC Investment Initiative of the Year: Resilient Water Accelerator (RWA)
  • Best Investable NDC Adaptation Investment Initiative of the Year: The Africa Adaptation Acceleration Program, Global Center on Adaptation and the African Development Bank Group
  • Best Bankable Donor NDC Investment Initiative of the Year: USTDA and ILN Strategic Climate Finance Mobilization Partnership
  • Best Blended Investment NDC Investment Initiative of the Year: Afreximbank Climate Finance Program
  • Best Youth NDC Investment Initiative of the Year: Green Jobs Platform, Jacob’s Ladder Africa
  • Best Natural Capital NDC Investment Initiative of the Year: Congo Basin Natural Capital Accounting Project, Climate Investment Funds (CIF)
  • Best Green Industrialization NDC Investment Initiative of the Year: The Africa Green Industrialization Initiative (AGII), African Union Commission and COP28 Presidency

The Awards successfully reinforced Africa’s dedication to advancing green industrialization, unlocking the continent’s vast climate and investment potential, and inspiring bold leadership and collaboration on the path to sustainability.

Ends

 

African Union Climate Investment Leadership Recognised by Africa Investor at African NDC Investment Awards

By Events, Featured, NewsNo Comments

24 September 2024, NDC Awards Media

New York, Addis Ababa, Dubai, Johannesburg, Nairobi, Lagos, Washington, Brussels, Beijing – Africa Investor (Ai) Group, a leading international institutional investment group, announced today that the African Union’s climate investment leadership was recognized with two major green industrialization award wins at the prestigious Africa Investor (Ai) NDC Investment Awards. The awards were presented during the African NDC Institutional Investment Summit & Awards, held alongside the 79th UN General Assembly and New York Climate Week.

The 2024 African Green Industrialization Investment Initiative of the Year was awarded to the African Union Commission and the COP28 Presidency for their groundbreaking African Green Industrialization Initiative, launched at COP28. The award was received by H.E. Josefa Leonel Correia Sacko, Commissioner for Agriculture, Rural Development, Blue Economy, and Sustainable Environment (ARBE) at the African Union Commission.

The 2024 Presidential Green Industrialization Investment Statesman of the Year honor was bestowed upon H.E. President William Ruto of Kenya for his tireless and impactful leadership during the Africa Climate Summit. Both awards recognize exemplary leadership in promoting and engaging the private sector to support the Nairobi Declaration – Africa’s Green Investment Deal.

These first-of-their-kind African NDC Investment Awards, sponsored by the African Green Infrastructure Investment Bank (AfGIIB), were established to recognize the achievements of governments, institutions, and Heads of State in enhancing the investment readiness of Africa’s NDC (Nationally Determined Contributions) projects, which require $3 trillion in investment by 2030.

Launched at the Commonwealth Heads of Government Meeting in Kigali in June 2022, the inaugural NDC Investment Awards were presented at COP27 in Egypt in November 2022. The 2023 NDC Investment Awards were profiled at the Africa Climate Summit in Nairobi, with shortlisted projects announced during New York Climate Week and the 78th Session of the UN General Assembly. The second edition of the awards was presented at COP28 in Dubai.

Commenting on the two award winners, Dr. Hubert Danso, Chairman of Africa Investor Group and Chair of the NDC Awards Adjudication Panel, said: “Africa Investor (Ai) is proud to leverage its global investment platform to showcase and recognize Africa’s NDCs public, private, philanthropic, and Presidential Climate Investment Champions. We congratulate H.E. Josefa Leonel Correia Sacko, the COP28 Presidency and President William Ruto for their tireless and successful green industrialization leadership and climate investment statesmanship, positioning Africa as a globally competitive and investable green technologies manufacturing hub.”

Ends

 

African NDC Investment Summit and Awards Conclude Successfully at Climate Week

By Events, Press Release

24 September 2024, NDC Awards Media

New York, Addis Ababa, Dubai, Johannesburg, Nairobi, Lagos, Washington, Brussels, Beijing – Africa Investor (Ai) Group, the continent’s leading institutional investment platform, announced today the successful conclusion of the African NDC Institutional Investment Summit and Awards, held in association with the Sustainable Markets Initiative (SMI) Africa Council. Under the theme “Aligning Private Capital Mobilization at Scale with Africa’s NDCs, the Nairobi Declaration, and the Sustainable Development Goals (SDGs),” the event concluded on a high note.

The Summit was hosted by the CFA Society New York Asset Owners Council in collaboration with key partners, including the Economic Commission for Africa (ECA), the African Union Development Agency (AUDA) Continental Business Network, the SMI Africa Council, the NDC Partnership, and the African Green Infrastructure Investment Bank (AfGIIB). It brought together African and global leaders to discuss strategies for scaling up private capital to support Africa’s Nationally Determined Contributions (NDCs) and green development projects.

At the 37th African Union (AU) Heads of State Summit, African leaders highlighted the urgency of mobilizing private capital to finance Africa’s $3 trillion in climate and sustainable development projects by 2030. The leaders recognized that concessional loans from Multilateral Development Banks (MDBs) would address only 10% of the continent’s private financing gap. The Heads of State reaffirmed their commitment to collaborating with the global institutional investment community to achieve the objectives of the Nairobi Declaration.

In response to this call, the SMI Africa Council (SMIAC), in partnership with Africa Investor, launched an initiative to position African green industrial infrastructure and nature as globally competitive investable asset classes. This initiative aims to mobilize private and philanthropic capital, create investable development opportunities, co-create bankable NDC investment programs, and achieve the Nairobi Declaration’s goals through Institutional Investor-Public Partnerships (IIPPs) and blended investments.

The Summit convened leaders from across Africa and around the globe, representing over $50 trillion in assets under management and advisement. Discussions focused on private capital mobilization strategies, IIPP opportunities, and showcasing Africa’s potential as a significant player in the $10 trillion per annum global green industrial economy, all while achieving risk and climate-adjusted returns for public, private, and philanthropic investors.

The Summit also showcased the work of the SMI Africa Council’s Investable Asset Classes Working Group, which has been instrumental in positioning African green industrial infrastructure as a globally competitive investable asset class and co-creating bankable NDC projects. These initiatives will help accelerate the Nairobi Declaration’s private capital mobilization targets and support global decarbonization efforts through IIPPs and blended investment solutions.

Commenting on the Summit and Awards, Dr. Hubert Danso, Chairman of Africa Investor (Ai) and Chair of the NDC Investment Awards Adjudication panel, said: “Africa’s NDCs are at a pivotal moment as countries prepare their five-year updates, due in February 2025.

This summit presented a powerful opportunity for governments, institutional investors, and philanthropies to come together and form impactful institutional investor-public partnerships. By making African NDCs investable, we can mobilize private capital at the speed and scale required to unlock the continent’s $3-7 trillion NDC investment opportunities and transform Africa’s green industrial future.

We extend our heartfelt congratulations to all the nominees and winners of the African NDC Investment Awards. Your projects are a beacon of hope and action, demonstrating what is possible when ambition meets commitment, inspiring us all to raise ambition and accelerate our efforts in building a sustainable Africa and a thriving world for the benefit of people, planet, and nature.”

The Summit culminated in the African NDC Investment Awards, which recognize the achievements of governments, institutions, and individuals advancing investment readiness for Africa’s NDC projects, which require over $3 trillion in investment by 2030. Now in their third year, these awards were initially launched at the Commonwealth Heads of Government Meeting in Kigali in 2022 and have since gained prominence, with awards presented at COP27 in Egypt and COP28 in Dubai.

The 2024 African NDC Investment Awards honored several distinguished leaders:

Presidential Green Industrialization Investment Statesman of the Year

  • H.E. Dr. William Samoei Ruto, President of the Republic of Kenya

Presidential Green Infrastructure Investment Statesman of the Year

  • H.E. Mohamed Ould Ghazouani, President of the Islamic Republic of Mauritania

Presidential Just Transition Investment Statesman of the Year

  • H.E. Bola Tinubu, President of the Federal Republic of Nigeria

Presidential Carbon Investment Initiative Statesman of the Year

  • H.E. Denis Sassou Nguesso, President of the Republic of the Congo

Presidential Transport Investment Statesman of the Year

  • H.E. Joao Lourenco, President of the Republic of Angola

Presidential Water Investment Statesman of the Year

  • H.E. Prithvirajsing Roopun, President of the Republic of Mauritius

Presidential Agriculture Investment Statesman of the Year

  • H.E. Samia Suluhu Hassan, President of the Republic of Tanzania

Presidential Energy Investment Statesman of the Year

  • H.E. Julius Maada Bio, President of the Republic of Sierra Leone

The Awards also recognized outstanding NDC projects and initiatives, with winners in the following categories:

  • Best Waste NDC Investment Initiative of the Year: Cape Town Waste Management Strategy, City of Cape Town’s Directorate of Urban Management
  • Best Energy NDC Investment of the Year: Microsoft and G42 AI Kenya Renewables Investment Programme
  • Best Transport NDC Investment Initiative of the Year: The Lobito Corridor Investment Promotion Authority
  • Best Forestry NDC Investment Initiative of the Year: Republic of Congo Forest Management Program, Ministry of Forest Economy of the Republic of Congo
  • Best Financeable NDC City Investment Initiative of the Year: Casablanca Urban Green Spaces Project, Casablanca Urban Agency
  • Best GreenTech NDC Investment Initiative of the Year: M-KOPA Solar, International Finance Corporation (IFC)
  • Best Agriculture NDC Investment Initiative of the Year: Low Carbon Transformation of the Rwandan Tea Processing Sector, Green Climate Fund (GCF)
  • Best Health NDC Investment Initiative of the Year: Nigerian Climate-Resilient Health Initiative, World Health Organization (WHO)
  • Best Water NDC Investment Initiative of the Year: Resilient Water Accelerator (RWA)
  • Best Investable NDC Adaptation Investment Initiative of the Year: The Africa Adaptation Acceleration Program, Global Center on Adaptation and the African Development Bank Group
  • Best Bankable Donor NDC Investment Initiative of the Year: USTDA and ILN Strategic Climate Finance Mobilization Partnership
  • Best Blended Investment NDC Investment Initiative of the Year: Afreximbank Climate Finance Program
  • Best Youth NDC Investment Initiative of the Year: Green Jobs Platform, Jacob’s Ladder Africa
  • Best Natural Capital NDC Investment Initiative of the Year: Congo Basin Natural Capital Accounting Project, Climate Investment Funds (CIF)
  • Best Green Industrialization NDC Investment Initiative of the Year: The Africa Green Industrialization Initiative (AGII), African Union Commission and COP28 Presidency

The Summit and Awards successfully reinforced Africa’s commitment to advancing green industrialization and unlocking the continent’s vast climate and investment potential.

Ends

 

SMI Africa Council to Host GEMs 3.0 Investor and Philanthropy Consultation at New York Climate Week

By Events, NewsNo Comments

The SMI Africa Council (SMIAC) will host a high-level, invitation-only consultation for institutional investors and philanthropists during New York Climate Week, focused on GEMs 3.0—a groundbreaking data and analytics platform initiative aimed at scaling investments in Africa, emerging markets, and developing economies (EMDEs). This closed-door event is designed to explore new approaches to leveraging Global Emerging Markets Risk (GEMs) data to unlock critical capital flows into these regions.

GEMs 3.0 is an institutional investor-led platform supported by SMIAC, with the mission of transforming how risk data in emerging markets is used to drive investments. By incorporating investor insights and engagement, GEMs 3.0 aims to support the implementation of major global initiatives, including the G20 Capital Adequacy Framework (CAF), the COP27 Presidency, the New Financial Pact Summit, the Bridgetown Initiative, and the Africa Climate Summit. Additionally, it aligns with the $150 trillion Institutional Investor Consortium’s COP28 Call-to-Action, which urges multilateral development banks (MDBs) and development finance institutions (DFIs) to form institutional investor-public partnerships. The ultimate goal is to democratize access to GEMs data analytics and significantly boost private capital mobilization to bridge the climate and SDG investment gap in Africa and EMDEs.

One of the key pillars of GEMs 3.0 is its commitment to engage directly with African Heads of State and MDB partners, creating pathways for more substantial investments. Building on GEMs 2.0, the platform integrates feedback from leading institutional investors and rating agencies to evolve into a powerful asset allocation tool. This will enable governments, issuers, and investors to collaborate on de-risking investments, encouraging larger capital allocations while meeting SDG and Paris Accord objectives.

GEMs 3.0 is positioned to become a leading data and risk analytics platform for investors, helping create blended finance structures to scale private investments in areas such as climate adaptation, mitigation, and SDG-aligned initiatives. By offering tools that analyze Probability of Default (PD) and Loss Given Default (LGD), the platform will help investors refine risk perceptions, leading to more accurate pricing and informed decision-making in emerging markets.

The New York Climate Week consultation will provide an update on GEMs 3.0’s progress and its strategic roadmap toward COP30 in Brazil, and will cover ecosystem consultations around the World Bank Annual Meetings in Washington, COP29 in Baku, and upcoming global summits like the G7 Summit in Canada and the G20 Summit in South Africa.

For more information and updates on GEMs 3.0, visit www.gems3.ai

African NDC Investment Awards Shortlist Announced by Africa investor

By News, Press ReleaseNo Comments

September 1, 2024, NDC Investment Awards Media

The shortlist for the highly coveted NDC Investment Awards, sponsored by the African Green Infrastructure Investment Bank (AfGIIB), was unveiled today by Africa Investor (Ai), the continent’s leading institutional investment platform.

These first-of-their-kind global African NDC Investment Awards have rapidly grown in influence and stature. Now in their third year, these awards were first announced at the Commonwealth Heads of Government Meeting (CHOGM) in Kigali, inaugurally presented at COP27 in Egypt, showcased during the successful Africa Climate Summit in Nairobi, and the second edition was presented at COP28 in Dubai.

Designed to raise ambition, foster investment collaboration, globally recognize achievements across the main NDC project sectors, and inspire and reward governments, developers, investors, philanthropies, and development partners, these awards drive private climate capital mobilization and improve the investment readiness of Africa’s NDC projects, which require over $3 trillion of investment by 2030.

The urgency and importance of crowding in the institutional investment community and philanthropies into African NDC-aligned investments, are heightened by the continent’s declining Official Development Assistance (ODA) flows.

Institutional Investor-Public Partnerships (IIPPs) and blended investments are indispensable for co-creating bankable NDC-aligned projects and bridging the continent’s $3 trillion investment gap at scale and speed. The transformative role of entrepreneurial philanthropies, spearheading and catalyzing Africa’s private capital mobilization paradigm shift – rendering African Green Industrial Infrastructure a globally competitive investable asset class, which makes development investable, not investment developmental, cannot be overstated.

This year’s prestigious awards will honor several African Heads of State with the NDC Presidential Investment Statesman of the Year Awards. For the first time, the awards will also feature two exciting new private capital mobilization categories: Best Natural Capital NDC Investment Initiative of the Year and Best Green Industrialization NDC Investment Initiative of the Year.

The shortlist includes 160 public and private sector-sponsored projects, representing over USD 200bn of NDC financing and investment opportunities, from 43 African countries, covering all 5 African sub-regions.

Commenting on the shortlist announcement, Dr. Hubert Danso, Chairman of Africa Investor (Ai) and the Chair of the NDC Investment Awards Adjudication panel, said, “

“Africa’s NDCs are at a critical juncture as countries finalize their five-year updates due in February 2025. This moment presents a significant opportunity for governments to raise ambition, make NDCs investable and foster institutional investor-public partnerships to mobilize private capital at the speed and scale needed, to deliver the continent’s $3-7 trillion of NDC investment opportunities.

We are therefore delighted to see how these NDC Investment Awards, since their inception three years ago, have not only mobilized investments, but also catalyzed a groundswell of collaboration and alignment between the institutional investment community, the private sector, governments, philanthropies, and development finance partners. Together, they are working in support of institutional investor-public partnerships to co-create, develop, finance, and invest in African NDC-aligned projects and programs as an investable asset class.”

The 2024 NDC Investment Awards winners will be announced at the Ai NDC Institutional Investment Summit & Awards in New York, on September 24th during the UN General Assembly and New York Climate Week.

The prestigious NDC Presidential Investment Statesman of the Year Awards will also presented at the Awards ceremony.

See the below 2024 NDC Investment Awards shortlist nominees:

Best Waste NDC Investment Initiative of the Year

  1. Accra Compost and Recycling Plant (ACARP)
    Zoomlion Ghana Limited
  2. Cairo Clean and Green Initiative
    United National Development Programme (UNDP)
  3. Tunis Waste-to-Energy Project
    German Development Bank (KfW)
  4. Rabat Waste Management and Recycling Program
    French Development Agency (AFD)
  5. T3: Increasing Plastic Recycling
    Ellen MacArthur Foundation
  6. Kigali Waste-to-Energy Project
    The World Bank Group
  7. Ekurhuleni Waste Management Program
    Ekurhuleni Metropolitan Municipality Council
  8. Cape Town Waste Management Strategy
    City of Cape Town’s Directorate of Urban Management
  9. Maputo Waste Management and Recycling Initiative
    The European Union (EU)
  10. Transportation Emission Reduction Project (10% Ethanol Blending to Fuel)
    The World Bank Group

 

Best Energy NDC Investment of the Year

  1. Tunisia’s Solar Energy Initiative
    French Development Agency (AFD))
  2. Ethiopia’s Geothermal Energy Development Project
    Geothermal Risk Mitigation Facility (GRMF)
  3. Lake Turkana Wind Power Project
    Lake Turkana Wind Power Limited
  4. Microsoft and G42 Ai Kenya Renewables Investment Progrogramme
    Microsoft and G42
  5. Kangnas Wind Farm
    Lekela Power
  6. Mozambique’s Mphanda Nkuwa Hydropower Project
    Electricidade de Moçambique (EDM)
  7. Nigerian Electrification Project
    Rural Electrification Agency (REA) of Nigeria
  8. Noor Ouarzazate Solar Complex
    Moroccan Agency for Solar Energy (MASEN)
  9. Just Energy Transition Project
    African Development Bank Group, FCDO
  10. Facilitating Access by Disadvantaged Communities and Women to Liquified Petroleum Gas (LPG)
    Global LPG Partnership

 

Best Transport NDC Investment Initiative of the Year

  1. The Lobito Corridor
    The Lobito Corridor Investment Promotion Authority
  2. Accra Bus Rapid Transit (BRT) System
    Ministry of Transport (Ghana)
  3. CFAO Electric Busses Investment
    CFAO Motors (part of the CFAO Group)
  4. Addis Ababa Light Rail
    The Ethiopian Railways Corporation (ERC) and the Export-Import Bank of China
  5. Dar es Salaam Bus Rapid Transit
    The Dar es Salaam Rapid Transit Agency (DART)
  6. Johannesburg BRT System
    The Johannesburg Development Agency (JDA)
  7. Cape Town MyCiTi Bus Service
    The City of Cape Town’s Transport and Urban Development Authority
  8. Freetown Electric Bus System
    The United Nations Development Programme (UNDP)
  9. Dakar All-Electric Bus Network
    The French Development Agency (AFD)
  10. Maputo Bus Rapid Transit System
    Maputo Municipal Council

    1.  

Best Urban Development NDC Investment Initiative of the Year

  1. Smart City Casablanca
    Casablanca Urban Agency
  2. New Cairo Capital
    New Administrative Capital for Urban Development Company (NAC)
  3. Konza Technopolis
    Konza Technopolis Development Authority (KTDA)
  4. Green City Kigali
    Rwanda Housing Authority (RHA)
  5. Johannesburg Eco District
    Johannesburg Development Agency (JDA)
  6. Cotonou Green City Initiative
    Ministry of Living Environment and Sustainable Development of the Republic of Benin
  7. Kinshasa Urban Development Initiative
    Ministry of Urban Planning and Public Works of the Democratic Republic of the Congo
  8. Maputo Urban Resilience Initiative
    Maputo Municipal Council
  9. Windhoek Smart City Initiative
    Ministry of Urban and Rural Development of Namibia
  10. Chongwe Smart City Renewable Energy Project
    Ministry of Local Government and Rural Development of Zambia

    1.  

 

Best Forestry NDC Investment Initiative of the Year

  1. Nigeria Reforestation Project
    Federal Ministry of Environment of Nigeria
  2. Ethiopian Green Legacy Initiative
    Ministry of Environment, Forest, and Climate Change of Ethiopia
  3. Ghana Forest Investment Program
    Forestry Commission of Ghana
  4. Kenyan Forest Conservation and Management Project
    Kenyan Forestry Service (KFS)
  5. Ugandan Forest Restoration Initiative
    Ministry of Water and Environment of Uganda
  6. Moroccan National Reforestation Plan
    High Commission for Water and Forests and the Fight Against Desertification of Morocco
  7. Tunisian Forest Management Project
    Ministry of Agriculture, Water Resources, and Fisheries of Tunisia
  8. Gabon Sustainable Forestry Initiative
    Ministry of Forests, Oceans, Environment, and Climate Change of Gabon
  9. Cameroon Reforestation and Conservation Project
    Ministry of Forestry and Wildlife of Cameroon
  10. Republic of Congo Forest Management Program
    Ministry of Forest Economy of the Republic of Congo

 

Best Financeable NDC City Investment Initiative of the Year

  1. Casablanca Urban Green Spaces Project
    Casablanca Urban Agency
  2. Urban Waste-to-Energy Programs
    National Environment Management Authority (NEMA)
  3. Konza Technopolis
    Konza Technopolis Development Authority (KTDA)
  4. Kigali Innovation City
    Rwanda Development Board (RDB)
  5. Tatu City
    Rendeavour
  6. The Ghana Smart Cities Project
    Ghanaian Ministry of Communications and Digitalisation
  7. Johannesburg Green Urban Development Project
    The Johannesburg Development Agency (JDA)
  8. Tunis Sustainable City Initiative
    Tunisian Ministry of Local Affairs and Environment
  9. Accra Urban Development Initiative
    Accra Metropolitan Assembly (AMA)
  10. Nairobi Urban Biodiversity Mapping and Investment Initiative
    Nairobi City County Government’s Department of Environment, Water, Energy, and Natural Resources

      1.  

 

Best GreenTech NDC Investment Initiative of the Year

  1. M-KOPA Solar
    International Finance Corporation (IFC)
  2. SunCulture
    Acumen Fund
  3. Sun Exchange
    European Investment Bank (EIB)
  4. KarmSolar
    EDF Renewables
  5. Easy Solar
    Acumen Fund
  6. Jaza Energy
    Global Environment Facility (GEF)
  7. BBOXX
    International Finance Corporation (IFC)
  8. Clean Technology Initiative
    TDB and African Development Bank Group
  9. Persistent Energy
    Shell Foundation, Acumen Bomboo Finance
  10. Oolu Solar
    BBOXX

    1.  

 

Best Agriculture NDC Investment Initiative of the Year

  1. Ethiopia Climate Resilient Wheat Initiative
    International Fund for Agricultural Development (IFAD)
  2. Kenya Sustainable Agriculture Project
    United Nations Environment Programme (UNEP)
  3. Ghana Climate-Smart Cocoa Program
    World Cocoa Foundation
  4. Nigerian Green Agriculture Initiative
    The World Bank Group
  5. Rwanda Climate-Smart Agriculture Program
    International Finance Corporation
  6. Zambia Climate-Smart Agriculture Initiative
    The African Development Bank Group
  7. Uganda Agricultural Adaptation Project
    The Government of Uganda, The Global Environment Facility (GEF), The World Bank Group
  8. Egypt Sustainable Agriculture Project
    United Nations Development Programme (UNDP)
  9. Tunisia Sustainable Agriculture Initiative
    German Development Bank (KfW)
  10. Low Carbon Transformation of the Rwandan Tea Processing Sector
    Green Climate Fund (GCF)

    1.  

 

Best Health NDC Investment Initiative of the Year

  1. Project Evolve: Climate x Health Infrastructure Investment Fund
    PATH
  2. Health Impact Credit
    Health Finance Institute
  3. Ethiopian Health Resilience Initiative
    Management Sciences for Health (MSH)
  4. Kenyan Climate-Resilient Health Initiative
    African Institute for Development Policy (AFIDEP)
  5. Ghana Health and Climate Project
    The World Bank Group
  6. Nigerian Climate-Resilient Health Initiative
    The World Health Organization (WHO)
  7. Moroccan Health and Climate Resilience Project
    The World Health Organization (WHO)
  8. Tunisian Health Resilience Initiative
    United Nations Development Programme (UNDP)
  9. Ugandan Health and Climate Project
    Tetra Tech
  10. HETA: Powering Health with Clean Energy in Africa
    Health Electrification and Telecommunications Alliance (HETA)

    1.  

 

Best Water NDC Investment Initiative of the Year

  1. Kenya Water Security and Climate Resilience Project
    Kenyan Ministry of Water, The World Bank Group
  2. Bulk Water Transfer in Zambia Project
    The African Development Bank Group
  3. Nigerian Urban Water Sector Reform Project
    Nigerian Ministry of Water Resources, The World Bank Group
  4. Rwanda Water and Sanitation Project
    The World Bank Group
  5. Gabon Water Supply Improvement Project
    The African Development Bank Group
  6. Cameroon Water and Sanitation Initiative
    The African Development Bank Group
  7. Republic of Congo Water Sector Development Project
    The Ministry of Energy and Water Resources of the Republic of Congo
  8. Liberia Water and Sanitation Project
    United States Agency for International Development (USAID)
  9. Resilient Water Accelerator
    Resilient Water Accelerator (RWA)
  10. Mozambique Water and Sanitation Project
    The World Bank Group

    1.  

 

Best Investable NDC Adaptation Investment Initiative of the Year

  1. Esther Kimani – Innovative Solution for Smallholder Farmers
    The Alliance for a Green Revolution in Africa (AGRA)
  2. Climate-Resilient Wheat Value Chain Development
    The African Development Bank Group
  3. The Africa Adaptation Acceleration Program
    Global Center on Adaptation, The African Development Bank Group
  4. The Climate Adaptation Strategy and Planning Initiative
    PreventionWeb
  5. IFC Climate Adaptation Investment Opportunities
    The International Finance Corporation (IFC)
  6. CRAKS: Building Community Resilience through Agricultural Adaptation
    Ministry of Foreign Affairs of the Netherlands and IDRC
  7. LAMA: Locally Led Adaptation Metrics for Africa
    The International Development Research Centre (IDRC) Canada
  8. Morocco Solar Program
    Moroccan Agency for Sustainable Energy (MASEN)
  9. Blue Co: The Blue Economy Co-Investment Platform Small Island Developing
    The Green Climate Fund (GCF)
  10. The Integrated Flood Management for Shabelle and Juba Rivers project
    Somalia Ministry of Energy and Water Resources (MOEWR)

      1.  

 

Best Bankable Donor NDC Investment Initiative of the Year

  1. USTDA and ILN Strategic Climate Finance Mobilization Partnership
    USTDA and Investor Leadership Network (ILN)
  2. Morocco Green Agriculture Program
    Morocco Green Agriculture Program
  3. Renewable Energy YeildCo’s for Africa
    MOBILIST, Revego Fund Managers
  4. Climate Finance Partnership
    Trade and Development Bank (TDB) Group and GGGI
  5. Western Area Power Generation Project
    Milele Energy and TCQ Power
  6. Lake Turkana Wind Power Project
    Lake Turkana Wind Power Project
  7. Infrastructure Climate Resilient Fund (ICRF)
    The Green Climate Fund (GCF)
  8. Great Green Wall Initiative
    The Great Green Wall Secretariat
  9. Renewable Energy Performance Platform (REPP 2)
    GCFt
  10. Global Environment Facility – Chad
    Special Climate Change Fund (SCCF)

 

    1.  

Best Blended Investment NDC Investment Initiative of the Year

  1. Afreximbank Climate Finance Program
    African Export-Import Bank (Afreximbank)
  2. The World Bank Group and AFD Climate- Projects- A Partnership for Global Progress
    The World Bank Group, Agence Française de Développement (AFD)
  3. Green buildings and retrofits for affordable housing
    CAEP – Deloitte
  4. Namibian Hydrogen Fund
    Namibia Hydrogen Fund Managers (Nam H2)
  5. Africa Green Infrastructure Alliance (AGIA)
    The African Development Bank Group
  6. LeapFrog Climate Innovation Fund
    LeapFrog Investments
  7. Infrastructure Climate Resilient Fund (ICRF)
    The Africa Finance Corporation (AFC)
  8. Acumen Resilient Agriculture Fund (ARAF)
    Children’s Investment Fund Foundation (CIFF), Acumen Fund, Green Climate Fund (GCF)
  9. Kawisafi Ventures
    Acumen Fund
  10. SDG Loan Fund
    The SDG Loan Fund

 

Best Youth NDC Investment Initiative of the Year

  1. Green Jobs Platform
    Jacob’s Ladder Africa
  2. Youth In Renewable Energy Movement Campaign- Ghana
    Strategic Youth Network for Development (SYND), UNDP Ghana
  3. Youth Climate Council (YCC) in Uganda
    Ministry of Water and Environment Uganda, UNDP Uganda, Oxfam International
  4. South Sudan Youth Enterprise Development and Capacity Building Project
    South Sudan Ministry of Youth and Sports
  5. Botswana Youth Empowerment Projects
    Botswana Ministry of Youth, Gender, Sport, and Culture
  6. The Namibian Youth Coalition on Climate Change (NYCCC)
    German Development Agency (GIZ), United Nations Development Programme (UNDP), Ministry of Environment, Forestry and Tourism, and the UNFCCC Children and Youth Constituency (YOUNGO) LCOY Working Group
  7. Green Takween-Algeria
    German Federal Ministry for Economic Cooperation and Development (BMZ), the GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH) and the Goethe-Institut
  8. Chadian Youth: The Strength to Learn, the Courage to Engage in Entrepreneurship
    Ministry of Youth and Sports, Chad
  9. USAID and Kenya STEM Education Partnership
    USAID, Government of Kenya
  10. Generation Unlimited 9JA
    UNICEF, Government of Nigeria

      1.  

 

Best Natural Capital NDC Investment Initiative of the Year

  1. Congo Basin Natural Capital Accounting Project
    Climate Investment Funds (CIF)
  2. Rwanda Catalytic Green Investment Facility (RCGIF)
    The African Development Bank Group
  3. African Parks Foundation Currency for Nature in Africa
    African Parks Network
  4. Biodiversity Credits Initiative
    The World Economic Forum
  5. TDB and UNEP Climate Finance Collaboration
    Trade and Development Bank Group, United Nations Environment Programme (UNEP)
  6. Kelp Blue
    Ocean 14 Capital
  7. PLANETA
    USAID
  8. Gabonese Association of the Pan African Forest Certification System (PAFC GABON)
    PAFC GABON
  9. Sustainable Forest Management for Enhancing Climate Change Adaptation and Mitigation
    The Food and Agriculture Organization (FAO)
  10. The Verifiable Nature Units (VNUs) Initiative
    United Nations Environment Programme (UNEP)

    1.  

 

Best Green Industrialization NDC Investment Initiative of the Year

  1. The Africa Green Industrialisation Initiative (AGII)
    African Union Commission and COP28 Presidency
  2. TDB and AfDB Clean Technology Initiative
    TDB, The African Development Bank Group
  3. Zambia and DRC Transboundary Battery and Electric Vehicle Special Economic Zone
    ECA, Afreximbank
  4. Infrastructure Climate Resilient Fund (ICRF)
    Green Climate Fund (GCF), Africa Finance Corporation (AFC)
  5. U.S.-Kenya Climate and Clean Energy Industrial Partnership
    The Government of Kenya and USAID
  6. BlackRock Climate Finance Partnership (CFP) Investments
    BlackRock
  7. TDB Class C Green+ Shares
    Trade and Development Bank Group
  8. $100 Million Capital Pool for African Entrepreneurs
    Africa Finance Corporation, Arise IIP
  9. Africa Renewable Energy Manufacturing Initiative (AREMI)
    ClimateWorks Foundation, African Climate Foundation, Bloomberg Philanthropies, CREIA, SEforALL
  10. Schonau Solar Energy
    Emesco

    1.  

Unleashing the Power of the Institutional Investor-Public Partnerships Framework’s Presidential Climate Investment Authority

By News

The challenge of climate change demands innovative solutions, especially for African governments looking to accelerate green development and economic growth. Enter the Institutional Investor-Public Partnerships (IIPP) framework’s Presidential Climate Investment Authority (PCIA) — a game-changing platform designed and championed by the African Green Infrastructure Investment Bank (AfGIIB), the African Union, Africa investor (Ai), the Sustainable Markets Initiative (SMI) Africa Council, DLA Piper and the CFA Asset Owners Council (AoC), to mobilize capital at an unprecedented scale.

By fostering Presidential-led collaboration with institutional investors as universal owners, the PCIA stands as a powerful and timely mechanism to transform climate commitments into actionable, bankable projects, aligning with Africa’s $3 trillion of Nationally Determined Contributions (NDCs) opportunities and driving the green industrialization agenda set forth in the Nairobi Declaration.

The Strategic Role of the Presidential Climate Procurement Authority

At the heart of the PCIA is the Climate Procurement Authority (CPA), a specialized body embedded within the Office of the President. The CPA’s mandate is multifaceted and strategically focused on creating an enabling environment for private climate investments at scale. It acts as a bridge between governmental bodies, public corporations, and private investors, ensuring seamless cooperation and alignment with ambitious NDC climate goals. Here’s how:

  1. Centralized Coordination: The CPA liaises with UNFCCC National Focal Points and the African Union Commission, ensuring that climate projects are not only nationally relevant but also regionally and globally significant. This alignment facilitates the sharing of best practices and model IIPPs standardized contracts, enhancing the quality and effectiveness of climate investments.
  2. Policy Formulation and Incentives: By developing state policies and incentives, the CPA makes climate projects attractive and aligns the interests of governments with domestic and global institutional investors alike. This includes creating frameworks that de-risk investments and offer compelling climate and risk adjusted return opportunities for both domestic and international public and private sector players.
  3. Capacity Building: Recognizing the importance of human capital, the CPA is committed to developing professional skills and resources. This includes recruitment and training programs, ensuring that personnel are well-equipped to manage and execute complex climate investment projects.

Mobilizing Trillions: The PCIA’s Potential

The PCIA’s potential to crowd-in private sector capital is immense. Here’s why:

  1. Scalability: The IIPPs framework is designed to mobilize capital at-scale, attracting trillions in investment. This is crucial for funding the vast array of climate projects needed to meet NDCs and drive sustainable development and Africa’s just energy transition.
  2. Bankable Projects: By uplifting private sector-originated, bankable projects, the PCIA ensures that investments are not only viable but transforms African green industrial infrastructure into a globally competitive investable asset class. This approach attracts a wider range of investors, particularly institutional investors representing over $300trn of assets worldwide mandated to pursue stable, long-term climate and risk adjusted returns.
  3. Joint Procurement and Collaboration: The CPA’s ability to engage in joint procurement with entities from other countries amplifies its reach, impact and potential for long duration bankable offtakes for energy and green technologies manufactured in Africa. This collaborative approach allows for the pooling of resources, expertise, and the re-characterizing of risk, making large-scale climate projects more feasible and attractive to long term investors.

The Nairobi Declaration and Green Industrialization

The Nairobi Declaration underscores the urgency of mobilizing private capital for green industrialization in Africa. The PCIA aligns perfectly with this vision, providing a structured pathway for investment in green industrial infrastructure, renewable energy, nature as an investable asset class on Africa’s balance sheet and other NDC climate-resilient projects. By doing so, it addresses key challenges such as energy access, economic diversification, and sustainable development, setting the stage for a prosperous and investable, low-carbon future for all.

A Framework for Success

The PCIA’s robust legal and operational framework is designed for success. It ensures:

  • Legal Clarity and Flexibility: The CPA operates under a clear legal Institutional investor public partnership mandate, with the flexibility to engage in joint procurement and establish joint entities. This legal clarity comforts and de-risks investors by providing a stable and predictable globally respected investment environment.
  • Accountability and Transparency: The CPA is accountable to the highest sovereign office and aligned with NDC commitments, ensuring transparency and adherence to the domestic and international rule of law. This builds investor confidence and fosters a culture of trust and cooperation.

Conclusion

The Institutional Investor-Public Partnerships framework’s Presidential Climate Investment Authority represents a transformative private capital mobilization platform for climate investments at-scale across Africa. By leveraging institutional investor-public partnerships, fostering regional and international collaboration, and creating an enabling environment for large-scale green industrial infrastructure investments, the PCIA is poised to fast-track the development of bankable, NDC-aligned climate projects.

The PCIA is being welcomed by African leaders as a beacon of innovation for NDCs private capital mobilization needs and a critical tool for African governments to realize the green industrialization investment goals of the Nairobi Declaration, driving sustainable economic growth for the benefit of Africa’s just energy transition, global decarbonization, and the well-being of people, planet, and nature.

For more information on Institutional Investor Public Partnerships (IIPPs) visit: www.iipphub.com

Institutional investment community urged to speak up to help improve private capital mobilization

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Publish What You Fund, a global campaign for aid transparency, has published a draft proposal outlining a new approach for boosting private capital mobilization (PCM) for emerging market and developing economies (EMDEs).

According to an executive summary of the draft proposal, there is a desire for more resources for multilateral development banks (MDBs) and development finance institutions (DFIs) to help address global challenges. At the same time, there have been strong calls for reform of these development banks, including efforts to increase the ways in which DFIs can significantly mobilize the private sector, as well as to manage their assets and accounts to free up more capital for investments in development.

According to Publish What You Fund, one of the most urgent calls has been to increase PCM to close the financing gap needed to meet Sustainable Development Goals. In 2023, the G20 Independent Expert Group recommended PCM be increased to $240 billion annually by 2030, yet current PCM rates have stagnated at just under $64 billion annually.

Through multi-stakeholder consultations, including with DFIs, shareholders, private-sector representatives and subject-matter experts, Publish What You Fund’s report proposes both PCM measurement and disclosure as ways to move the needle. It defines both an improved measurement approach and the disaggregated project-level disclosure that is a prerequisite to reaching PCM at scale.

“Improved measurement of PCM is the first important step,” states the proposal. “The second, and probably more critical, is disaggregated disclosure at a level that is sufficient to understand and analyze PCM. The current state of transparency is wholly inadequate to do either.”

The proposal sets out three main baskets for measuring PCM: Balance sheet mobilization (including private DFI equity, hybrid capital and bonds), primary private capital mobilization (including direct and indirect mobilization through co-investment), and secondary private capital mobilization (including secondary transactions distributing risk to the private sector).

In terms of disaggregation, the proposal states generally, PCM disclosure is now aggregated, with only limited levels of disaggregation, which is problematic because not all mobilized capital is equal. Aggregation also masks outliers that can significantly skew the data and distort the overall picture. To address these concerns, Publish What You Fund is calling for disclosure by investment, instrument, country, sector, amounts mobilized and the typology of the mobilized party (e.g., whether the mobilized party is a domestic bank, or a regional private equity fund). DFIs have expressed concerns, however, about commercially sensitive information becoming public and potential breaches of client agreements.

Hubert Danso, chairman and CEO of Africa Investor (Ai) Group, chair, CFA Asset Owners Council and co-chair SMI Africa Council, has published a commentary pledging support for the proposal and urging the institutional investment community to speak up to support efforts for better mobilization data, stating investors’ lack of willingness to share data is often a reason given by DFIs as to why this information isn’t available.

“The irony with private capital mobilization data is that we need the information yet are commonly cited as the main barrier to it becoming available,” wrote Danso in a piece titled, “Private Capital Mobilisation — why we need to speak up, not just pay up.”

Danso believes current efforts by MDBs to mobilize private capital are “grossly suboptimal,” with the potential to close only 10 percent of EMDEs private financing gap between now and 2030 to 2050, with the institutional investment community being counted on close the outstanding 90 percent of EMDEs’ private financing gap left by “the MDBs private capital mobilization market failure,” according to Danso.

It is estimated that it will take trillions annually to close the climate financing gap for EMDEs by 2050.

“Let’s not forget that PCM is about us,” Danso wrote. “We’re the ones being counted as mobilized. So, we need to be clear. We need this data. We believe that Publish What You Fund’s proposed approach to disclosing PCM data meets our needs and is wholly reasonable within existing business practices and confidentiality agreements. And we are willing for all of the investments where our resources are being counted as ‘mobilized’ to be subject to this level of disclosure.”

He added: “We’ll play our part, but we need DFIs and heads of state, as sovereign shareholders of MDBs to ensure MDBs play theirs.”

To read Danso’s commentary in full, click here.

Source: IREI

Private Capital Mobilisation – why we need to speak up, not just pay up

By NewsNo Comments

Author: Dr Hubert Danso, Chairman and CEO of Africa Investor (Ai) Group, Chair, CFA Asset Owners Council, Co-Chair SMI Africa Council.

The concept of Private Capital Mobilisation (PCM) is being touted as a big part of the solution to the ever-growing SDG and climate financing gap for emerging markets and developing economies (EMDEs) requiring additional trillions annually to 2050. Development experts and governments are increasingly calling upon the private sector to plug the tens of trillions of dollars gap in development finance and investment needed, to address challenges around the new collective quantified goal on climate finance (NCQG), green industrial infrastructure investing requirements, and a host of other issues in emerging economies, which will be central themes at the UN Summit for the Future, the UN Financing for Development (FfD) Summit, CoP29 and the G20.

Current efforts by Multilateral Development Banks (MDBs) to mobilize private capital are grossly sub-optimal, with the potential to close only a mere 10% of EMDEs private financing gap between now and 2030-2050, even after recently announced significant private capital mobilization reforms. The domestic and global institutional investment community, as universal owners, are required now more than ever to assist through institutional investor-public partnerships (IIPPs), close the outstanding 90% of EMDEs private financing gap left by the MDBs private capital mobilization market failure.

The expectations about what the private capital can contribute are high. And from our side, I’m not sure we have the information we need to fulfill this role.

Data is the lifeblood of our industry. It is even more vital in sectors and geographies where we have less experience and need the data to guide us, identify opportunities, and illuminate potential risks. I’m talking about emerging markets. Emerging markets are the places where our resources can have the most impact yet where we need data the most. The pioneers in this space, the MDBs and bilateral development finance institutions (DFIs) such as the International Finance Corporation (IFC), African Development Bank or IDB Invest are increasingly conceding to political and investor pressure to share more and more information about the performance of their investments.

However certain areas, such as the risk and default data held within the Global Emerging Markets (GEMs) database owned by their exclusive club of the most influential MDBs, aren’t moving quickly enough. The delivery of the G20 mandated directive to the GEMs Consortium, to implement GEMs 2.0 as a separate entity to interface with investors and transition GEM’s 2.0 from mere disclosure, to leverage the investor-led GEMs 3.0 initiative, a broader asset allocation at-scale data platform with private risk takers representing over US$200 trillion of assets, would more effectively bridge the climate and SDG financing gaps in EMDEs.

PCM data is another area with too little transparency.

To be clear, when I’m talking about PCM data I’m referring to information about the private sector entities which come in alongside DFIs to provide resources to specific investments. This could be in the form of syndications, instances where DFIs have provided guarantees or a number of other examples. Current PCM data is available from two sources – the OECD and also a joint report produced by the MDBs. Both provide very high levels of data aggregation that are almost meaningless if you want to understand what types of private entities are in what types of deals in which sectors and geographies. I know firsthand just how many of you are passionate about doing more in emerging markets, targeting impactful mandate-aligned resilient investments, and ensuring that we play our part. But we’re going to need better data to understand what that “part” entails, and where we can best contribute.

The irony with Private Capital Mobilisation data is that we need the information yet are commonly cited as the main barrier to it becoming available. This was the case at the launch of Publish What You Fund’s new report on Private Capital Mobilisation during the World Bank’s Spring meetings. After introductions by the US Treasury Department, an IFC representative stated that clients and mobilised parties wouldn’t accept the disclosure of information using the approach which Publish What You Fund is proposing. Their approach seeks to capture the benefits of disclosure while still protecting sensitive information. To achieve this they propose project-level disclosure that provides the type of mobilised party but not the identity of the individual investor. Specifically, in line with our proposals, they are suggesting that DFIs publish, for each investment, the following information:

  • Investment name
  • Investment value
  • Total amount mobilised
  • Geography
  • Investment instrument
  • Sector
  • Disaggregated mobilisation amounts
  • Typology of mobilised party e.g. International Bank, Pension Fund, Sovereign Wealth Fund, Family Office, etc.

Publish What You Fund have gone to the effort of speaking to many clients and mobilised parties of DFIs. They are all saying the same thing. This approach is reasonable. DFIs commonly cite concerns about such granular data being subject to “reverse engineering” to identify specific parties, explaining that they fear this would put them in breach of their confidentiality agreements with clients. The stakeholder organisations which Publish What You Fund consulted don’t hold this concern, and I can see why. Much of this information is already publicly available, or at least available through paid-for platforms. Where it’s not it can often be inferred by combining multiple information sources. More importantly, it feels wholly reasonable within the limits of standard business practice in our sector. As a minimum DFIs should be checking with their clients as to whether this information represents a genuine concern for them and if not amend disclosure agreements accordingly.

Ultimately everything in our sector can be reverse-engineered to figure out who is involved in which deals. But there is a difference between listing all of the parties in a transaction so that a deadline-pressured journalist can drop the name of your organisation into an article without any real due diligence, versus the approach being proposed here. If there is any risk to any party as a result of this approach I’m convinced that the benefits of making this data publicly available will outweigh those risks ten-fold.

Let’s not forget that PCM is about us. We’re the ones being counted as mobilised. So we need to be clear. We need this data. We believe that Publish What You Fund’s proposed approach to disclosing PCM data meets our needs and is wholly reasonable within existing business practices and confidentiality agreements. And we are willing for all of the investments where our resources are being counted as “mobilised” to be subject to this level of disclosure. We’ll play our part, but we need DFIs and Heads of State, as sovereign shareholders of MDBs to ensure MDBs play theirs.

End

First Movers Coalition engages Ai’s Dr. Hubert Danso on CleanTech Investing

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Africa investor (Ai) today confirmed Dr. Hubert Danso, its CEO and Chairman, and the Chairman of the African Union’s Continental Business Network (CBN), the African Green Infrastructure Investment Bank (AfGIIB), and Co-Chair of the Sustainable Markets Initiative (SMI) Africa Council, shared investor insights on the World Economic Forum’s First Movers Coalition (FMC) studio panel session on Surfacing the Supply of Zero-Emission Fuels and Clean Technologies in South Africa.

The panel accompanied the launch of the FMC’s white paper on “Decarbonizing South Africa’s shipping and trucking sectors following the workshop that FMC held in South Africa on surfacing the supply of zero-emission fuels.

In this wide-ranging panel discussion, Dr. Danso addressed the strategic investments and partnerships required to position South Africa as a leader in zero-emission fuels and clean technologies for the shipping and trucking sectors, within a global and continental sustainable energy transition context. Dr. Danso shared insights on how the Africa investor Group is leveraging international and regional financing opportunities to support the development of green hydrogen projects in South Africa and the continent, and the growing importance of establishing Africa Green Industrial Infrastructure as an investable asset class through Institutional Investor-Public Partnerships (IIPPs) and the African Green Infrastructure Investment Bank (AfGIIB).

Speaking on the panel, Dr. Danso highlighted, “The energy transition is a megatrend. It needs real multibillion-dollar investment platforms and mega funds to deliver South Africa’s $20 billion portfolio of green hydrogen projects and even larger opportunities that sit around renewables. There is a need to continue creating an emphasis around how we communicate the opportunity in the best and most structured fashion to the global institutional investment community. That is going to be the only pool of capital big enough to drive these ambitious projects.”

Dr. Danso introduced the complex role institutional investors are playing as universal owners, engaging bankable investee companies with proven transition technologies and sustainable energy solutions, to provide essential private sector leadership in Africa’s just energy transformation through Green Industrial Cities initiatives, aimed at creating green jobs and establishing Africa as a world-leading, investable manufacturing hub for green technologies.

View the panel highlights

  

Visit First Movers Coalition web page: South Africa’s Shipping and Trucking Sectors virtual panel discussion – First Movers Coalition (weforum.org)

Dr Hubert Danso appointed to UN AI for Good panel

By Featured, News

Africa investor confirmed today that Dr Hubert Danso its CEO and Chairman, has been appointed as a member of the Adjudication Panel for the AI for Good Innovation Factory Africa of the UN’s International Telecommunication Union (ITU-UN).

AI for Good is the leading United Nations action-oriented, global, and inclusive platform on AI and is organized by the International Telecommunication Union in collaboration with 40 UN sister agencies, and co-convened with the Government of Switzerland.

The AI for Good Innovation Factory is the UN-based start-up pitching/acceleration platform to help start-ups grow and scale their innovative AI-powered and SDG-driven solutions, by providing them with opportunities for business matchmaking, mentoring, fundraising, and more.

Institutions represented on the AI for Good Innovation Factory Africa panel include; NVIDIA, Google, MIT, Sony AI, Qualcomm, Boston Dynamics AI Institute, PlayGround Global, Sony Ventures Corporation, DCVC, KUKA, and Hanson Robotics etc.

Dr Danso will engage AI for Good Innovation Factory top African Entrepreneurs at the upcoming Artificial Intelligence for Good Global Summit in Johannesburg South Africa.

Ends.

African NDC Investment Awards announced during G7 Summit– Call for Entries

By Events, Featured
Rome, Johannesburg, Nairobi, Lagos, Washington

Africa investor (Ai), a leading international investment group, announced today following the Partnership for Global Infrastructure and Investment (PGI) meeting at the G7 Summit that African Heads of State, governments, investment champions, the private sector, philanthropies, and development finance partners will again be recognized for their NDC investment mobilization initiatives by the 2024 Africa investor (Ai) NDC Investment Awards.

The prestigious Africa investor (Ai) NDC Investment Awards were launched at the Commonwealth Heads of Government Meeting (CHOGM) in Kigali, with the inaugural 2022 Awards presented under Africa’s COP Presidency at COP27 in Sharm El Sheikh. The 2023 Awards were presented at COP28 in Dubai in collaboration with the COP28 UAE Presidency, and the 2024 NDC Awards will be presented in November during COP29 in Baku, Azerbaijan.

Hosted by Africa investor (Ai) and sponsored by the African Green Infrastructure Investment Bank (AfGIIB), these NDC Awards are the only international, pan-African NDC Investment Awards that recognize and reward both public and private sector institutions working to innovate and mobilize private capital at scale for Africa’s bankable NDC investment commitments and projects. Africa needs to mobilize $3 trillion to implement its NDC investment opportunities by 2030, while the whole world only managed to mobilize $2.8 trillion for renewable energy investments over the past 20 years, with Africa receiving only 2% of that global sum.

The NDC Investment Awards are the premier NDC institutional investor-public-private partnerships (IIPPs) platform, designed to inspire greater ambition, accelerate NDC implementation, and showcase investment success stories. This assists in mobilizing private capital at scale to close Africa’s multi-trillion-dollar NDC climate financing and green industrial infrastructure investment gap.

Commenting on the Ai NDC Investment Awards Announcement and Call for Entries, Dr. Hubert Danso, Chairman of Africa investor Group and Chair of the NDC Awards Adjudication panel, said,

“The importance of the Ai Africa NDC Investment Awards cannot be overstated, given that Africa’s $3 trillion NDC investment requirements will need to mobilize and secure unprecedented allocations of private capital at-scale and speed, at a time when global aid and net financial transfers to Africa have fallen to their lowest level since the global financial crisis.”

Dr. Danso went on to highlight that investing at scale in ambitious African NDCs offers governments and investors a unique institutional investor-public partnership platform. This platform harnesses the Nairobi Declaration (Africa’s Green Investment Deal), the African Green Industrialization Initiative (AGII), the African Green Infrastructure Investment Bank (AfGIIB), the African Continental Free Trade Area (AfCFTA), and the G7 Partnership for Global Infrastructure and Investment (PGI), to de-risk and deliver Africa’s just energy transition and align the future of global green industrialization, finance, and long-term private capital for the benefit of investment stakeholders, people, planet, and nature.

The 2024 African NDC Investment Awards will be presented to African Heads of State, Governments, Investors, Development Finance Partners, Companies, and Philanthropies through the following categories:

Presidential Investment Statesman of the Year:
1. Presidential Green Infrastructure Investment Statesman of the Year
2. Presidential Just Transition Investment Statesman of the Year
3. Presidential Carbon Exchange Investment Statesman of the Year
4. Presidential Transport Investment Statesman of the Year
5. Presidential Water Investment Statesman of the Year
6. Presidential Agriculture Investment Statesman of the Year
7. Presidential Energy Investment Statesman of the Year

Best NDC Sector Investment Initiatives of the Year:
1. Best Waste NDC Investment Initiative of the Year
2. Best Energy NDC Investment of the Year
3. Best Transport NDC Investment Initiative of the Year
4. Best Urban Development NDC Investment Initiative of the Year
5. Best Forestry NDC Investment Initiative of the Year
6. Best Agriculture NDC Investment Initiative of the Year
7. Best Health NDC Investment Initiative of the Year
8. Best Water NDC Investment Initiative of the Year

Private Capital Mobilization Initiatives of the Year:
1. Best Natural Capital NDC Investment Initiative of the Year
2. Best Green Industrialization NDC Investment Initiative of the Year
3. Best Bankable Donor NDC Investment Initiative of the Year
4. Best Blended Investment NDC Investment Initiative of the Year
5. Best Investable NDC Adaptation Investment Initiative of the Year
6. Best Financeable NDC City Investment Initiative of the Year
7. Best GreenTech NDC Investment Initiative of the Year
8. Best Youth NDC Investment Initiative of the Year

The deadline for Award entry submissions is August 30, 2024. The shortlist will be announced on September 24, 2024, during UN Climate Week at the Africa investor (Ai) Summit in New York. The 2024 NDC Investment Award winners will be announced in November during COP29.

Entry is a simple 500-word nomination outlining how your organization meets the awards criteria. Entries from any public or private sector institution, whether African or international, are welcome provided they meet the category entry criteria.

DOWNLOAD NDC INVESTMENT AWARDS ENTRY PACK HERE
To submit your entry, please click here.

ENDS

Note to Editors For more information on the Ai African NDC Investment Awards, visit: www.ndcinvestmentawards.com, or email: tmutasa@africainvestor.com

About The NDC Investment Awards Headline Sponsor:
The African Green Infrastructure Investment Bank (AfGIIB)
The African Green Infrastructure Investment Bank (AfGIIB) is an African Union-convened and supported African institutional investor-led global climate investment platform to catalyze institutional private capital at scale for African green industrial infrastructure investment opportunities. Visit www.afgiib.com

About The NDC Investment Awards Host:
The Africa investor (Ai) Group
Africa investor (Ai) Group is an institutional investment holding platform that aligns its pools of capital from sovereign wealth funds, pension funds, family offices, and long-term investors with vetted infrastructure, private equity, and technology investment opportunities in Africa. Visit www.africainvestor.com

G7 Leaders and Global Investors Urged to Adopt Africa TIVA ESG Policy

By Featured, News

Enforcing Minimum Africa Trade In-Value Added Standards to Align with SDGs, Nairobi Declaration and the Just Energy Transition”

As leaders in the global economy, G7/G20 Heads of State and global institutional investors, have a fiduciary responsibility to uphold ethical standards and promote sustainable practices. Embracing Environmental, Social, and Governance (ESG) principles is not just a moral imperative but also a strategic imperative for long-term economic stability and prosperity.

Therefore, endorsing and adopting the policy recommendation to regulate thresholds against low levels of ‘trade in value-added’ goods (TIVA) as an anti-ESG and punitive discriminatory trade practice, is crucial for advancing human rights, promoting equitable economic development, the just transition, and ensuring the sustainability of investments, people and the planet.

Promoting Human Rights:

By regulating low levels of trade in value-added goods from global value chains, G7 Heads of State and global institutional investors can actively address the ‘S’ in ESG’ and combat conventional, unjust, exploitative, systemic discriminatory international trade practices and promote human rights in supply chains.

Ensuring that investee and portfolio companies have a significant portion of their value-added goods supply chains sourced from Africa, encourages fair labour practices, protects workers’ rights, and fosters inclusive industrial economic growth across the continent and equitable access to global markets.

Fostering Economic Development:

Prioritizing high-value TIVA from Africa over low-value raw materials is instrumental in fostering sustainable economic development and green industrialization on the continent in line with the African Union’s Nairobi Declaration (Africa’s Green Investment Deal), the asset-owner-led African Green Infrastructure Investment Bank (AfGIIB), the African Continental Free Trade Area (AfCFTA), the Africa Green Industrialisation Initiative (AGII) and the African Unions 5% Infrastructure Investment Allocation Agenda.

By incentivizing investments in value-added production and green technology manufacturing, this policy recommendation promotes local job creation, green industrialization, skills development, and technology transfer, ultimately contributing to poverty reduction, sustainable development goals, and Africa’s just energy transition at industrial scale.

Enhancing Investment Returns:

Embracing ESG best practices, including the promotion of value-added trade, not only aligns with ethical considerations and institutional investor-public partnerships (IIPPs) best practices but also enhances market-appropriate investment returns for long-term investors.

Companies with diversified, greener, and resilient supply chains are better equipped to navigate market volatility, regulatory changes, climate change, landed cost advantages and reputational risks.

Therefore, integrating TIVA-ESG threshold criteria into investment decision-making processes can lead to more sustainable, competitive, and profitable outcomes for public and private investors and stakeholders.

Mitigating Systemic Risks:

Addressing the inequities and vulnerabilities inherent in the current global trade practices affecting Africa is essential for mitigating systemic risks and promoting financial stability.

By promoting inclusive sustainable economic growth and transforming extractive industries into green industrial globally competitive value chains, G7/G20 Heads of State and global institutional investors can contribute to building more resilient and sustainable economies, less susceptible to external shocks and geopolitical tensions, whilst earning market appropriate returns from increased access to the $10trn and growing global green industrial economy, which will be valued at a quintillion dollars this century.

Demonstrating Leadership:

Endorsing and adopting the policy recommendation to regulate trade in value-added goods as an ESG and sustainability imperative, sends a powerful signal of leadership and commitment to responsible long-term investing and sustainable development.

As stewards of global capital and sovereign assets, global institutional investors  and G7/G20 Heads of State, have the influence and leverage to drive positive change and shape the future of global commerce and the global green industrial economy, in alignment with best sustainability and ESG principles.

In conclusion, endorsing and adopting the policy recommendation to regulate trade in value-added goods as an ESG and sustainability imperative, is not only ethically imperative, but also strategically beneficial for Heads of State and global institutional investors.

By promoting human rights, fostering economic development, enhancing investment returns, mitigating systemic risks, and demonstrating leadership, this TIVA-ESG policy recommendation aligns with the broader objectives of the sustainable development goals, the Paris Agreement, the Nairobi Declaration, and the just energy transition, to enshrine inclusive prosperity for all stakeholders.

Ends


Appendix 1 – Investors Board of Trustee Template for Special TIVA Resolution

Resolution of the Board of Trustees of [Insert Institution]

Preamble:

The Articles of Agreement of (Insert institution) outline the institutions’ purposes. In recognition of the global climate just transition and trade inequality emergency for Africa and the industrial climate investment opportunities affecting our beneficiaries, we, the Board of Trustees of [Insert Institution], hereby resolve to expand the existing purpose within our Agreement, specifically in [Insert Relevant Article], to include the following:

Resolution:

“The purpose of this institution shall include the promotion of sustainable economic development and social progress among its beneficiary members, both individually and collectively.

This includes explicit commitments to enforce Trade in Value Added (TIVA) standards. These standards mandate that a minimum threshold of value-added goods for finished products must originate from Africa. This is to ensure that investments and client companies do not engage in practices where raw materials extracted from Africa are indiscriminately processed and add value outside of the continent.

We, the Board of Trustees, adopt this resolution in recognition of the critical linkages between trade, human inequality, trade discrimination, SDG 10, climate change, social equity, the just transition, obligations under the Task Force for Inequality-related Financial Disclosures (TIFD), and the long-term development goals of our members.”

Appendix 2 – Template for the Terms of Reference for the Board TIVA Committee

Purpose:

The primary purpose of the Committee is to assist the Board in setting and enforcing TIVA Threshold targets and overseeing their implementation through regular reviews.

The Committee provides strategic guidance to management on the direction and objectives appropriate for achieving these targets and monitors performance against them.

Responsibilities & Duties:

To fulfill its responsibilities, the Committee shall undertake the following activities, along with any other tasks it deems necessary or appropriate:

  1. Establishing and Periodically Reviewing TIVA Threshold Targets:
    • Define strategic objectives, targets, and key performance indicators (KPIs) relating to TIVA thresholds.
    • Set specific portfolio targets to align with Africa TIVA goals, including:
      • TIVA threshold ratios and absolute targets.
      • Specific annual targets investments relating to low-income and least-developed countries.

2. Guidance on Strategic Green Industrial Infrastructure Investments in EMDEs:

    • Review and recommend business plans, budgets, and results in relation to the institution’s strategic priorities and TIVA threshold targets.
    • Engage actively with management to ensure that corporate performance indicators, instruments, and incentives align with the institution’s objectives on TIVA thresholds and scope 3 decarbonization (covering direct and indirect emissions).

3. Monitoring Performance Against TIVA Targets:

    • Periodically review management’s performance against TIVA targets based on quarterly reports.
    • Evaluate occasional management reports on special topics or strategic themes related to TIVA thresholds and green industrial infrastructure investment trends and opportunities and provide feedback.

Meetings:

The Committee shall meet as often as necessary, but no less than once per quarter, to effectively carry out its responsibilities.

Ends

Dr. Hubert Danso, Ai Chair, Talks GEMs Future with ARC Ratings

By Events, Featured

Africa investor (Ai) today confirmed that Dr. Hubert Danso, its CEO and Chairman, and the Chairman of the African Union’s Continental Business Network (CBN), the African Green Infrastructure Investment Bank (AfGIIB) and Co-Chair of the Sustainable Markets Initiative (SMI) Africa Council, sat down for an exclusive interview with ARC Ratings to discuss the Global Emerging Markets Risk Database (GEMs), its future and the importance of institutional investor-public partnerships (IIPPs).

In this wide-ranging interview from ARC Ratings offices in Canary Wharf, London, Africa investor’s Dr. Hubert Danso tells the ARC Ratings that the GEMs Consortium of Multilateral Development Banks (MDBs) must without further delay democratize full investor access to GEMs data and fully implement GEMs2.0, as mandated by G20 Heads of State as their sovereign shareholders, to establish GEMs as a separate operational entity to democratize access to GEMs data for investors and credit rating agencies, to improve transparency and assist mobilize private capital at-scale and speed, for emerging markets and developing economies (EMDEs) sustainable development investment opportunities.

To support and mobilize the trillions for the critical just energy transition in EMDEs, global and domestic asset owners are proactively driving the evolution of GEMs so that it is accessible to investors to use for accurate risk assessment and to responsibly diligence opportunities to scale investment allocations to EMDEs.

To achieve this, Africa investor (Ai), ARC, and global investors have formed an institutional investor-public partnership (IIPP) platform to not only ensure GEMs2.0 disclosure is delivered but to expand it with new inputs from the investment community and rating agencies towards GEMS3.0—an asset allocation tool that supports the alignment of institutional investment allocations at-scale, with EMDEs Paris Agreement and Sustainable Development Goals (SDGs).

View the full interview here

Useful links:
Introducing GEMs3.0 at New Financial Pact Summit: Hidden GEMS – The Global Emerging Markets Database by Dr. Hubert Danso 
Africa investor announces GEMs3.0 at COP28 Finance Day in Dubai 
Funding Vital Emerging and Developing Market Projects: How GEMS and Private Markets Can Help Achieve Scale – ARC Ratings
Bankers Push World Bank to Unlock Secret Data For Climate Loans: Bankers Push World Bank to Unlock Secret Data For Climate Loans
Unlock our Hidden Gems: Costs to Developing Countries of MDBs not democratising investor access to GEMS 

Multipolarism: The Sustainable Geopolitical Green Industrial Investment Policy

By Featured, News

In today’s rapidly evolving multipolar global economy, industrialized countries face a critical decision on how to harness the multipolarity in global trade, to reimagine the balance of trade policies: Either continue to rely on traditional export revenues or pivot to a multipolarism geopolitical model that prioritizes investments in Emerging Markets (EMs) with a focus on climate transition resources.

by adopting this new multipolarism model, where regional alliances and sovereign economic interests collaborate to meet each other’s development and finance needs instead of competing,  industrialized nations can secure competitive investment returns while positioning themselves to capitalize on the burgeoning $10 trillion per annum global green industrial economy. Here’s the investment case for making this strategic shift.

Here’s the investment case for making this strategic shift.

  1. Capitalizing on the Growing Green Economy Market Growth Potential

The global green industrial economy is expanding at an unprecedented rate, estimated to reach $10 trillion annually. By investing in EMs’ climate transition projects, industrialized countries can tap into this lucrative market, positioning themselves as leaders in green technology and sustainable development.

Premium Pricing for Green Products: Products and services emerging from green investments can be sold at a premium. Consumers and businesses are increasingly willing to pay more for sustainable and environmentally friendly products, providing higher margins and enhanced profitability.

  1. Competitive Investment Returns

Higher Returns in Emerging Markets: Emerging markets offer higher growth potential compared to mature markets. Investments in renewable energy, sustainable infrastructure, and climate adaptation projects in EMs can yield competitive returns, outpacing those from traditional export revenues.

Risk Mitigation Through Diversification: By diversifying investments across various EMs, industrialized countries can mitigate risks associated with single-market dependencies. This approach spreads risk and enhances the stability of investment portfolios.

  1. Driving Technological Innovation

Accelerating Green Technology Development: Investing in climate transition resources in EMs spurs technological innovation. Industrialized countries can lead the development and deployment of cutting-edge green technologies, which can then be marketed globally.

First-Mover Advantage: Early investments in green industrial projects position countries as pioneers in sustainable technology, securing long-term competitive advantages in the global market.

  1. Strategic Geopolitical Benefits

Strengthening Global Alliances: By supporting EMs in their climate transition efforts, industrialized countries can build stronger geopolitical alliances, fostering cooperation and stability. These partnerships can lead to favorable trade agreements and enhanced diplomatic relations.

Soft Power and Global Leadership: Leading the charge in global climate initiatives enhances a country’s soft power. It positions industrialized nations as responsible and forward-thinking global leaders committed to sustainable development.

  1. Enhancing Domestic Economic Resilience

Job Creation in New Sectors: Transitioning to a green investment model creates jobs in emerging industries such as renewable energy, sustainable infrastructure, and green technology. This can offset job losses in traditional export sectors.

Economic Diversification:Investing in green projects abroad and developing corresponding industries domestically reduces reliance on traditional exports. This diversification strengthens economic resilience against global market fluctuations.

  1. Meeting Global Climate Goals

Addressing Climate Change: Industrialized countries have a critical role in combating climate change. By investing in EMs’ climate transition projects, they contribute significantly to global emission reduction goals, aligning with international climate agreements and enhancing their environmental credentials.

Corporate Social Responsibility: Companies in industrialized nations can bolster their corporate social responsibility profiles by supporting sustainable development initiatives, and attracting environmentally conscious investors and consumers.

 

Implementation Strategies

Institutional Investor-Public Partnerships (IIPPs): Collaborative Projects where Governments, Universal Owners, and private sector portfolio companies, jointly fund and manage industrial climate transition projects in EMs, sharing risks and rewards.

Risk Mitigation: Align co-investments with African asset owners and strategic at-scale long-duration, bankable offtake and blended investment alliances, with initiatives such as the Inflation Reduction Act, African Growth and Opportunity Act (AGOA), the EU Green Deal’s Value Addition Partnerships and bankable long duration global corporate commitments for green technologies to mitigate historical barriers to global market access, foreign exchange, and political risks associated with investing in African markets.

Utilize instruments like guarantees, and insurance to protect investments against political and economic risks in EMs.

Employ the world-class Institutional Investor-Public Partnership (IIPP) framework, to safeguard investments.

 

Green Bonds and Climate Investment Funds

Innovative Financing: Leverage green bonds and dedicated climate funds to finance sustainable projects in EMs, providing a steady stream of capital for green investments.

Blended Investments: Combine public and private investment to enhance the scale and impact of climate transition projects.

 

Policy Support and Incentives

Regulatory Frameworks: Develop supportive regulatory frameworks that encourage green investments and ensure fair market conditions for green industrial cities and long duration bankable offtakes agreements for green technologies.

Tax Incentives: Offer tax breaks and other incentives for companies investing in NDC and green industrial infrastructure investment projects in Africa, especially those in Green Industrial Cities.

 

Capacity Building and Technical Assistance

Training Programs: Implement training programs to build local capacity and ensure the effective implementation and management of green industrial projects.

Technical Support: Provide technical expertise to help Africa develop robust and scalable climate transition and NDC industrial scale projects.

 

Comparing import revenues to investment returns (prospects and dynamics)

Investment Returns

  1. Rate of Return:
    • Green Investments: Investments in green technologies and infrastructure tend to have attractive long-term returns. Renewable energy projects, for example, can offer returns ranging from 5% to 10% or more annually.
    • Emerging Markets: Investments in Emerging Markets generally come with higher potential returns, often in the range of 10% to 20% annually, depending on the sector and market conditions.
  1. Compound Growth:
    • Compound Interest: Over decades, compound growth significantly boosts the value of initial investments. For instance, a 10% annual return on a $1 trillion investment could grow to approximately $2.59 trillion over 10 years, and around $6.73 trillion over 20 years.
  1. Diversification:
    • Risk Mitigation: Diversifying investments across various green technologies and regions can help mitigate risks and ensure more stable returns.

Import Revenues

  1. Export Revenues vs. Import Costs:
    • Traditional Model: In a traditional export-driven model, revenues are generated from selling industrial goods to Emerging Markets. These revenues are typically subject to market fluctuations, competition, and trade policies.
    • Premium Pricing: If industrialized countries can command premium prices for advanced green technologies, the revenue per unit sold could be higher, but total revenue would still depend on market size and demand.
  1. Market Size and Growth:
    • Global Green Economy: The global green economy, projected to reach $10 trillion annually, represents a significant market. Capturing even a fraction of this market through premium pricing can lead to substantial revenues.
    • Export Revenue Potential: If industrialized countries capture 5% of this market with premium products, annual revenues could be around $500 billion. Over a decade, this could amount to $5 trillion, assuming consistent growth and market share.

Comparative Analysis

  1. Investment Returns:
    • High Potential: Assuming an average annual return of 10%, a $1 trillion investment could yield approximately $1.59 trillion in returns over 10 years, and $5.73 trillion over 20 years.
    • Impact of Scale: For larger investments, say $3 trillion, the returns could be $4.77 trillion over 10 years and $17.19 trillion over 20 years, highlighting the power of compounding.
  1. Import Revenue:
    • Steady Flow: Import revenues from selling industrial products might provide a more consistent revenue stream, but may not grow as rapidly due to market saturation and competition.
    • Market Dynamics: Factors like trade barriers, geopolitical tensions, and economic cycles can affect import revenues more directly than diversified investment returns.

 

Investing for a Sustainable Future

While both import revenues and investment returns have their merits, long-term investments in Emerging Markets’ green transitions offer potentially higher and more sustainable returns. The compounding effect of investment returns over decades can significantly outweigh the steady but potentially lower growth of import revenues.

  • Investments in the hundreds of billions to trillions: With high rates of return, these investments can substantially grow over time, providing robust financial gains.
  • Import revenues: Though they provide a steady income stream, they are more vulnerable to market conditions and might not scale as dramatically as investment returns.

Thus, from a strategic perspective, prioritizing investments in green technologies and infrastructure in emerging markets could yield higher overall returns than relying solely on import revenues from industrial product sales.

 

In Conclusion

Adopting a multipolarism geopolitical industrial trade policy that prioritizes climate investments in EM’s over immediate export revenue benefits offers a compelling strategic investment case for industrialized countries.

Mulitpolarism not only yields competitive returns and capitalizes on the $10trn per annum and growing expanding global green industrial economy, but also drives technological innovation, strengthens geopolitical alliances, and enhances domestic economic resilience.

By leading on multipolarism-led green industrial policy, industrialized nations can secure their economic future, address the just energy transition, and arrest global climate challenges while demonstrating leadership commitment to a more equitable and sustainable world.

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