The recent 58th bi-annual meeting of SADC Stock Exchanges held virtually this week saw the climate change sustainability initiative take center stage as regional bourses seek to grow climate-smart investments.
This follows the signing of a partnership to develop a green bond market in the region between FSD Africa (FSDA) and the Committee of Southern African Development Community (SADC) Stock Exchanges (CoSSE) in March this year.
A Green Bond is a debt instrument in which a third party has certified that the proceeds will be used only for clean projects.
“Presentations were made by FSD Africa principals on the roadmap of the SADC Green Bond Programme partnership between CoSSE and FSD Africa, previously announced on the 11th of March 2021,”
“Deliberations also concentrated on the implementation of the Support to Improving the Investment and Business Environment (SIBE) Programme spearheaded by the SADC Secretariat in conjunction with the European Union (EU). Progress updates of other associated SADC Sub-Structures pertaining to capital market issues were discussed, including Financial Inclusion, Cross-Border Trade between SADC Secretariat in conjunction with the European Union (EU),” said CoSSE.
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 Zimbabwe Stock Exchange (ZSE) is one of the bourses in the region leading in crafting viable climate smart capital markets.
In 2019, it drafted a Green and Social Bonds Framework meant to act as a guide on the operational regulatory environment on Green and Social Bonds in Zimbabwe and the procedure for listing and trading of Green and Social Bonds.