The Egyptian financial market is set to benefit from announcements made by the UK government in partnership with FSD Africa to strengthen activities aligned with decarbonisation, resilience and natural capital.
Through a series of stakeholder engagements and high-level meetings with leading institutions and decision makers, partners identified and committed to support Egypt’s efforts in climate risk management and of human development, paying particular attention to the country’s vulnerable populations.
Since 2016, Egypt has undertaken a series of reforms aimed at strengthening the local economy and attracting foreign investment. These reforms have helped the economy avoid much of the adverse effects of the Covid-19 pandemic. As Egypt’s economy seeks to recover and address new challenges, including the economic impact of the war in Ukraine, initiatives such as those announced this week will further boost national efforts to build a more resilient economy.
Key highlights of the commitments include:
Support for innovation for climate resilience
Egyptian tech startup Baramoda has won a Fintech x Climate Resilience Startup challenge. The challenge aimed to identify solutions to improve the resilience of climate-vulnerable communities in Africa.
Baramoda’s solution aimed to maximize the efficiency of agricultural waste management by tackling soil pollution and agricultural waste. Baramoda innovates by improving soils and organic fertilizers from different types of agricultural waste. This bespoke compost is made from organic and natural components for the health of Egyptian soil.
Recently, FSD Africa announced similar support for Africa-focused fintech startups with solutions that enable climate resilience in the most vulnerable communities.
FSD Africa also participated in an eye-opening investor roundtable with leading Egyptian venture capitalists, fintech accelerators and development agencies organized by the American University in Cairo (AUC) Venture Lab to discuss the evolution of the ecosystem of climate resilience solutions.
Sign up to the Nairobi Declaration
FSD Africa recognizes the contribution insurers can make to climate change and to delivering better outcomes for the continent. To this end, the organization has urged Egypt-based stakeholders to commit to the Nairobi Declaration on Sustainable Insurance as a first step towards creating a sustainable insurance industry and building resilience. for the mainland.
Partners highlighted the importance for all businesses across Africa to engage with net zero ambitions, agreeing that by playing its part, the insurance sector will be key in building an enabling environment. sustainable for the future.
Memorandum of Understanding with the Egyptian Financial Regulatory Authority to advance the implementation of ESG principles in North Africa
FSD Africa is in advanced discussions with the Egyptian Financial Regulatory Authority (FRA) to jointly pilot the integration of ESG principles in the insurance sector in Egypt. Under the MoU, FSD Africa and FRA will engage directly with local insurers and, in due course, work together to deliver the Africa Climate Finance Leadership Course in North Africa.
The Africa Climate Finance Leadership Course will build the capacity of regional policymakers, regulators, academics and financial market actors to support climate-related projects. The training will also provide guidance to these regional actors to access climate funds from global sources and accelerate the mobilization of capital for climate projects in North Africa.
Commenting on the announcements:
Mark Napier, CEO of FSD Africa, said, “FSD Africa is committed to working with regulators and government agencies to identify, mitigate and manage climate risks and opportunities. Through our new partnerships, Egypt and its neighboring countries will have the opportunity to meaningfully address the risks of climate change and accelerate the transition to a high-potential green economy.
Gareth Bayley, British Ambassador to Egypt, said: “The financial sector has a key role to play in delivering on our climate commitments, as the British and Egyptian High Level Climate Champions told us in Bonn. I am therefore delighted to see that sustainable finance is rapidly becoming a cornerstone of our green partnership between the UK and Egypt. I particularly welcome the collaboration to build capacity and embed sustainable practices in the insurance and pension sectors, both in Egypt and in the region. »
Dr Mohamed Omran, Chairman of the Financial Regulatory Authority (FRA) said: “The FRA recognizes the importance of sustainability in general and sustainable finance, as key tools for economic growth, as this Sustainability has been and continues to be a key part of FRA’s strategy. strategy and is one of its main priorities. The FRA is delighted to encourage partnerships to encourage insurers to develop solutions that help solve environmental and social problems. At the same time, the integration of ESG principles is essential to ensure that the Egyptian insurance industry offers innovative insurance products.