In 2021, sustainable bonds surged past $1 trillion in assets under management (AUM)—a win for climate-conscious investors and impact-driven financiers back then. 

However, gender bonds, which directly target economic empowerment for half of the world’s population, are still a rounding error in global capital flows.

Women own 30% of registered businesses in Africa but receive less than 10% of commercial bank financing. Meanwhile, female-led funds are statistically proven to outperform the male-led, yet the investment gap stubbornly continues. 

The irony? The very financial sector that prides itself on numbers is seemingly ignoring some of the most obvious ones.

Hence, the Gender Bonds Toolkit Dissemination Workshop, held on 27th and 28th January 2025 at the Radisson Blu Anchorage Hotel in Lagos sought to address these issues. 

Hosted by FSD Africa in partnership with UN Women, the event assembled financial sector stakeholders to discuss how gender bonds could finally become a mainstream instrument in Africa’s capital markets.

Gender Bonds Toolkit: Experts Call for Inclusive Finance as Only 6% SDGs on Track for 2030

With panel sessions and a fireside chat, the Gender Bonds Toolkit Dissemination Workshop touched on the challenges, opportunities, and strategies required to close the gender financing gap.

Including regulatory frameworks and investor engagement, the discussions revealed a mix of cautious positivity and hard-hitting facts about why capital markets remain sluggish in embracing gender finance—and what needs to change.

These challenges formed the foundation for deep discussions at the workshop, starting with an in-depth look at the Nigerian market.

Thematic Bonds in Nigeria: Market Insights and Opportunities

Panel: Exploring the Opportunity for Thematic Bonds in Nigeria

The discussion kicked off with an overview of Nigeria’s dynamic capital market, where thematic bonds—especially green and gender bonds—are gaining interest. Experts from Renaissance Capital Africa, Cygnum Capital Group, Securities and Investment Services Department (SEC Nigeria) and London Stock Exchange Group (LSEG) delivered insights into the regulatory sector and the role of financial institutions in driving sustainable investment.

Key Takeaways:

• Financial institutions have so far led thematic bond issuance, leveraging development finance institutions (DFIs) and impact investors.
• Nigeria’s SEC has been indispensable in establishing frameworks for green, social, and gender bonds, ensuring compliance with global standards to attract investors.
• Sovereign and corporate issuances in Nigeria, including green sukuks—a new climate finance instrument (green Islamic bond) that has the potential to channel the $2 trillion Islamic Finance market to fund green and sustainable investment projects—and gender-focused programs reveal the country’s growing participation in the sustainable finance ecosystem.
• Challenges remain in investor awareness and ensuring sustained adoption of gender bonds beyond donor-driven incentives.

Alternative Capital Mobilization: Structures, Impact & Lessons Learned

Fireside Chat: Scaling Gender Bonds through Innovative Financial Structures

At the Gender Bonds Toolkit Dissemination Workshop, Panellists from InfraCredit, Aruwa Capital Management, and Symbiotics discussed alternative funding models for gender bonds, emphasizing private capital mobilization and blended finance structures.

Key Takeaways:

• Women-led funds are three times more likely to invest in female CEOs and twice as likely to fund female founders.
• Aruwa Capital has deployed $40 million in assets under management (AUM), with 70% of its portfolio comprising female-led businesses.
• Infracredit’s blended facility has unlocked financing for clean energy projects, benefiting communities without electricity.
• Microfinance institutions (MFIs) are important in gender-focused investing, often serving 100% female clients, showing a clear business case for gender bonds.

From Strategy to Issuance: Strengthening Gender Finance Ecosystems

Panel: Defining Gender Goals, Data Quality & Investor Engagement

This session examined how institutions are structuring gender bonds, focusing on data-driven strategies, investor confidence, and regulatory compliance. Panelists from Access Bank, Absa, and the West African Development Bank (BOAD) shared best practices.

Key Takeaways:

• Access Bank’s “W Initiative” has driven financial inclusion through targeted women-focused banking programs.
• Absa has mobilized $350 million to support women-owned businesses and is leveraging UN Women’s Women Empowerment Principles (WEPs) to shape its gender strategy.
• BOAD’s gender strategy follows a three-pillar approach: (1) Institutionalizing gender in financial planning, (2) Economic empowerment, and (3) Job creation and market access.
• Gender data is necessary: Accurate disaggregation of financial data allows institutions to track the real impact of gender-focused investments.

Lessons from Issuers: Challenges, Innovations & Future Prospects

Panel: Insights from an Issuer’s Perspective

Issuers shared first-hand experiences on scaling through the bond market, engaging investors, and overcoming regulatory limitations. The session featured representatives from FSD Africa, BII (British International Investment), and private-sector issuers.

Key Takeaways:

• Gender bonds require “sweeteners”: Partial or full guarantees, blended financing, and development finance institution (DFI) backing have been essential in securing investor confidence and ensuring successful issuances.
• Credit rating challenges persist: Many issuers struggle with low credit ratings, making it difficult to attract institutional investors without guarantees or risk mitigation mechanisms.
• Investor education is key: While thematic bonds are gaining interest, many local investors still prioritise traditional instruments. Awareness campaigns and engagement strategies are important to promoting demand.
• Thematic bond structuring must ensure targeted impact: Funds raised must be transparently allocated to gender-inclusive businesses and female entrepreneurs, avoiding the risk of “gender-washing.”
• Local currency issuances are essential for market development: Issuing gender bonds in local currency can help mitigate foreign exchange risks and attract domestic investors.

Scaling Up Gender Bonds: The Road Ahead

Panel: Telling the Impact narrative – Impact monitoring and reporting simplified

This session focused on how financial institutions, regulatory bodies, and development organisations can scale gender bonds as a mainstream financing tool in Africa. Key discussions included insights from the London Stock Exchange’s Sustainable Bond Market, African Development Bank (AfDB), and Nigeria’s SEC.

Key Takeaways:

• The London Stock Exchange’s Sustainable Bond Market (SBM) provides a credible listing platform for green, social, and gender bonds. Annual due diligence ensures transparency and credibility, reducing the risk of misallocated funds.
• Multilateral institutions like AfDB play important roles by providing technical assistance, first-loss guarantees, and de-risking mechanisms to encourage more issuances.
• Investor participation needs to expand beyond DFIs: Encouraging local institutional investors, pension funds, and asset managers to integrate gender bonds into their portfolios will be critical to long-term market growth.
• Regulatory clarity and incentives can drive adoption: Policymakers must ensure that frameworks are in place to support issuers while incentivising investors to prioritise gender-focused investments.
• Blended finance and public-private partnerships (PPPs) can accelerate adoption: Combining concessional financing from DFIs with private sector capital can help scale gender bond issuances and create a more sustainable market.

Finally: A Sustainable Future for Gender Finance

The Gender Bonds Toolkit Dissemination Workshop reiterated the need for a well-structured approach to scaling gender bonds in Nigeria and Africa. While there are still challenges—ranging from regulatory issues to investor reluctance—there is an obvious momentum in the market.

Gender bonds go beyond impacting investment tools, they are viable financial instruments that can drive inclusive economic growth. 

With continued collaboration among financial institutions, regulators, and development partners, gender bonds can transition from a niche product to a mainstream funding mechanism, bringing about billions in capital for women-led enterprises and gender-inclusive projects across Africa.

The key to success lies in regulatory support, strong market education, investor engagement, and innovative financing structures. In embedding gender finance into mainstream capital market strategies, Nigeria and Africa can fully leverage sustainable finance to drive economic empowerment and financial inclusion.

The post Major Takeaways from the Gender Bonds Toolkit Dissemination Workshop appeared first on Tech | Business | Economy.

The investments cut across oil and gas, clean energy initiatives, and infrastructural projects, according to key highlights released by the Presidential Media Centre.

Breakdown of Investments

The lion’s share of the total investment—$5.5 billion—was channelled into the oil and gas sector, showing sustained confidence in Nigeria’s hydrocarbon resources despite global energy transitions. 

Again, $400 million was allocated to the Presidential Metering Initiative, a programme designed to enhance electricity metering nationwide, tackling incessant billing inefficiencies and boosting consumer confidence.

The Clean Mobility and Cooking Program received $700 million in funding, showing the extent of focus on clean energy solutions, particularly in areas of transportation and cooking, where many Nigerians still rely on non-renewable energy sources.

Asset Acquisitions Drive Growth

A closer look at asset acquisitions revealed a dynamic year for companies in Nigeria’s energy sector:

Shell Petroleum Development Company divested assets worth $1.3 billion to the Renaissance Consortium, opening opportunities for indigenous players.

Seplat Energy made a big move, acquiring ExxonMobil’s upstream assets for $1.3 billion, strengthening its place in the energy space.

Chappal Energies recorded two major deals, acquiring assets worth $1.2 billion from TotalEnergies and $860 million from Equinor.

These transactions align with trends of international oil companies (IOCs) restructuring their portfolios to meet energy transition goals, while indigenous companies strengthen their footprint in the local market.

Advancing Solar Energy with the G5 Sahel Project

In enhancing renewable energy, Nigeria is a top participant in the G5 Sahel Desert to Power Project, the largest solar energy initiative in Africa.

The project, with a master plan cost of $10 billion, aims to generate 10 GW of solar power across 11 Sahel countries.

It is funded by the African Development Bank (AfDB) and the Green Climate Fund, backing the country’s commitment to renewable energy adoption and sustainability.

This initiative aims to largely boost electricity access in the Sahel region, combating energy poverty while reducing reliance on fossil fuels.

Nigeria had a strong 2024 for investments, innovation, and infrastructure development with an inflow of $6.7 billion into its energy sector. Balancing its rich oil and gas resources with an expanding adoption of renewable energy is the goal for sustainable energy growth.

This growth in the energy sector is expected to bolster Nigeria’s economy, create jobs, and enhance energy accessibility for millions of citizens.

The post Oil and Gas Lead with $5.5 Billion as Nigeria’s Energy Sector Attracts $6.7 Billion in 2024 appeared first on Tech | Business | Economy.

With backing from partners such as the African Development Bank (AfDB) and European Investment Bank (EIB), this fund seeks to accelerate African entrepreneurship and drive job creation, particularly for youth and women.

Through a comprehensive strategy, Janngo provides African small and medium-sized enterprises (SMEs) with digital resources to enhance their market reach and operational capacity. 

The firm, led by founder and executive chair Fatoumata Bâ, emphasises that sustainable economic growth in Africa relies on strong ecosystems that bolster digital platforms and also provide essential training for professional development.

This strategy addresses essential needs of SMEs—key drivers of Africa’s economy—by facilitating access to markets, streamlining supply chains, and encouraging financial stability. 

In Africa, SMEs generate 17% of GDP and employ 85% of the workforce, yet they face challenges due to inadequate funding and resources. Janngo’s approach responds directly to these issues by providing capital, training, and scalable digital solutions that empower these businesses.

Janngo Capital also aims to address the underrepresentation of women in Africa’s entrepreneurial sector. Its portfolio includes notable female-led enterprises, such as Nigeria’s B2B e-commerce platform, Sabi, aligning with Janngo’s focus on gender inclusivity and impact investment. 

Bâ explains that while Africa has the world’s highest rate of female entrepreneurship, only a small percentage of global venture capital flows to female founders. Investing in diverse founders and ventures beyond fintech would enable Janngo to change this.

In addition to gender diversity, the firm’s investments are strategically distributed across various sectors, from healthcare and financial services to agritech and logistics. The team, with expertise spanning technology, marketing, and environmental, social, and governance (ESG) practices, actively collaborates with portfolio companies. 

Janngo’s “hands-on” approach is central to its operations, supporting businesses in reaching market fit, expanding into new regions, and building solid product foundations.

With a presence in Abidjan, Mauritius, Tunis, and Paris, Janngo aims to back 25-40 companies over the next five years, extending the fund’s reach beyond its original 25-company target. In providing investment sizes between €150,000 and €5 million, Janngo ensures startups from Seed to Series B stages can access the necessary support to scale.

The success of Tunisian expense management platform Expensya and Nigerian B2B e-commerce platform Sabi exemplifies Janngo’s strategy, with the former securing a ~$120 million acquisition and the latter generating approximately $1 billion in annual gross merchandise volume. 

Janngo’s proactive approach, evident in these high-profile exits, is a signal to investors of Africa’s expanding investment opportunities and the tangible returns that impactful venture capital can yield.

The post Janngo Capital Closes €73M Second Funding Round to Drive Growth, Inclusion for African SMEs appeared first on Tech | Business | Economy.

This latest tranche, part of the Seedstars Africa Ventures I fund, further fuels the firm’s mission to support innovative businesses with high growth potential across the continent.

The AfDB’s investment comprises $7 million from its own resources and $3.5 million from the European Union Boost Africa program. This commitment will bolster Seedstars Africa Ventures’ ability to attract further investment, expanding its pool of resources for supporting African startups. This will also aid the firm’s expansion across Africa, broadening its footprint, and offering valuable support to promising entrepreneurs in more corners of the continent.

As an early-stage venture capital fund, Seedstars Africa Ventures specialises in supporting high-growth companies throughout Sub-Saharan Africa. It prioritises businesses that demonstrate strong potential for success and sustainable growth, generate substantial revenue, actively contribute to the African economy, offer solutions to key market challenges, and foster positive social impact.

Seedstars Africa Ventures’ focus extends beyond traditional investment hubs, with a notable emphasis on French-speaking countries like Senegal, Côte d’Ivoire, Benin, and Cameroon. The fund also maintains active investments in Ghana, Uganda, and Tanzania.

Operating with a total capacity of $75 million, Seedstars Africa Ventures targets the early-stage and launch phases of businesses addressing critical market needs. Seed investments typically hover around €250,000, followed by subsequent capital injections of up to €5 million to fuel growth.

The fund’s core areas of interest include financial inclusion, empowering businesses and individuals through fintech and insurtech solutions; retail and logistics, enabling online and mobile commerce platforms to reach more consumers; healthtech, where the firm Invests in technologies that improve healthcare access and delivery, off-grid energy, providing sustainable power solutions in underserved areas, and technology adoption, facilitating technology integration across various industries, particularly food processing and value chains.

Seedstars Africa Ventures’ projected impact aims to create 9,000 full-time jobs, half of which will be made up of women. Additionally, the fund is expected to generate significant economic benefits for the continent.

This investment aligns with the objectives of the Boost Africa program, which targets high-growth, socially impactful startups. It also bolsters the AfDB’s broader strategy of linking entrepreneurship, investment, and economic growth to poverty reduction and sustainable development. Furthermore, the investment supports the Bank’s High 5 priorities by backing startups operating in key sectors like agriculture, health, industrialisation, and off-grid energy. Ultimately, this collaboration contributes to regional integration and improving the lives of people across Africa.

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