The Green Exchange, an African Fintech is aiming to sell $5 billion in green bonds in Nigeria, Ghana, Kenya, and other African countries over the next five years to support green bond projects across the continent.
Investors will be able to exchange debt on projects like wind turbines, electric vehicle charging stations, sustainable housing, and solar panel installations in a secondary market, according to the website.
According to Bloomberg, Egypt, Nigeria, and South Africa have thus far issued green bonds in Africa, while China and Chile have been key sellers in other parts of the world.
The Green Exchange’s cofounders, Orla Enright and Diana Boadu Amoatin said they plan to raise $2 million to construct the virtual marketplace by July for both debt and equity financing, using crowdsourcing on the equity side and green bonds on the debit side.
Its Chief Executive Officer, Enright, said that Africa has been left out on a global boom in borrowing to fund projects that assist in diminishing climate change. She also said that the reactions of companies in the area of giving corporate green bonds are affirmative.
Global investment in green bonds hopes to get to $1 trillion before the end of 2022, according to Enright, but the African market gives only about 0.4% of the global market base for green bonds.
Citing a greater example of climate change by developed countries and investment funds for developing countries who already are making investments in Africa, Orla said, “We will aim for an increased number of North American and Scandinavian institutional funds using ESG as one of their major criteria of investment”.
Overseas Development Institute said green binds solutions would assist in arranging $5 billion every year to address these in Sub-Saharan Africa even when Africa stands at risk of climate change as well as they endure a high cost of finance.
The Green Exchange African Fintech Aims For $5 Billion Green Bond Issuance in Nigeria and Other Countries
