New green bonds programme for SADC

Cyclone Eloise ravages Mozambique

by SAVIOUS KWINIKA 
JOHANNESBURG, (CAJ News) THE climate change agenda in Southern Africa has received a major boost with the signing of a partnership to develop a green bond market in the region.

FSD Africa (FSDA) has signed the co-operation agreement with the Committee of Southern African Development Community (SADC) Stock Exchanges (CoSSE).

The agreement will support the SADC’s 16 member countries to leverage domestic and international capital markets for investment in green projects.

The FSD Africa-CoSSE partnership programme will support member countries and both private and public sectors to issue green bonds, creating a favourable ecosystem and improving knowledge and capacity for sustainable investments.

The programme will also help SADC countries develop listing guidelines and regulations for green bonds, build a pipeline of potential green bonds issuers, tap the countries’ institutional investment community for investment into green bonds, train stakeholders on climate finance and support the adoption of climate-related financial reporting and disclosure.

Recently, South Africa, Namibia, Seychelles and Mauritius have successfully issued green bonds.

Mark Napier, FSD Africa Chief Executive Officer, said green bonds would soon play a critical role in financing the region’s growth, accelerating the bounce-back from COVID-19 and ensuring recovery is resilient and respectful of the environment.

He noted in recent years, SADC countries experienced extreme climate-related challenges including drought and cyclones.

“Green bonds can be an excellent way to channel SADC significant capital resources into job-creating projects that can help pivot the region towards a low-carbon economy and protect it from environmental shocks,” Napier added.

The region is most vulnerable to climate change.

– CAJ News

 

 

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