Kenya’s Financial Hub & Abu Dhabi Global Market to Coact Sustainable Finance

By Abdul Rahman Suagibu –

Kenyan Shillings
Photo Credit: Thestar

NEW AFRICA BUSINESS NEWS, Freetown, Sierra Leone- Abu Dhabi Global Market and Kenya will work in partnership to support sustainable finance in each other’s markets as investment in green projects gains ground. The agreement will give way to ADGM and Kenya’s Capital Markets Authority (CMA) “to exchange information pertinent to products, services and initiatives as well as to develop, legislative, regulatory and institutional frameworks to enable the two sides to facilitate and support sustainable finance”, the two entities said in a statement.

United Arab Emirate and host of other countries in the region have been actively popularizing sustainable finance with strong efforts on green energy projects following the Paris Climate Accord in 2015 that calls for countries to transition to a lower carbon economy, and raising awareness in environmental friendly projects to curb the impact on the climate. Masdar, UAE’S clean energy forum that has invested more than $ 8.5 billion in global projects, has also taken up diverse actions including rolling out its green revolving funding facility in October, 2018. First Abu Dhabi Bank, the top UAE lender by assets, has also set $ 10 billion for financing green businesses over the course of ten years.

“ADGM”s partnership and relationship with CMA began in 2017 on Fin.Tech (Financial technology) where we shared mutual objectives of fostering innovation, financial inclusion and regulatory cooperation”, Richard Teng- Chief executive of the financial services Regulatory Authority (FSRA) at ADGM, said.

“We are pleased to continue this cooperation with CMA to promote sustainable capital formation and deployment of financing as part of the commitment to our countries green economy strategies and agenda”.

ADGM, which is among the fastest growing regional financing hubs, also rolled out its sustainable finance agenda earlier this year with 25 key public and private entities and institutions signing the Abu Dhabi Sustainable Finance Declaration to jointly advocate for sustainable finance and investments for the long term growth of the country’s economy.

“This strategic partnership between CMA (Kenya) and FSRA underscores the importance of sustainable finance and the intangible value drives within environmental, social and governance perspectives”, said Paul Muthaura Chief Executive of CMA.

“This initiative has come at an opportune time as sustainable finance is expected to play an important but niche role in driving the growth of Kenya’s capital Markets”.

For New Africa Business News Abdul Rahman Suagibu Reports,  Africa Correspondent

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