Abidjan, 25 April 2024 – Today, the Global Green Growth Institute (GGGI) and the Bourse Régionale des Valeurs Mobilières (BRVM) announced a long-term partnership through signing a Memorandum of Understanding to strengthen collaboration on stock market capacity building and facilitate access to green, social and sustainability (GSS) bonds in francophone West African countries.

The signing of the Memorandum of Understanding (MoU) signifies a commitment to green growth and
sustainable access to green climate finance. The partnership will benefit the eight countries of the West African Economic and Monetary Union (WAEMU): Benin, Burkina Faso, Cote D’Ivoire, Guinea- Bissau, Mali, Niger, Senegal, and Togo. The aim is to facilitate access to the capital required to support the countries’ sustainable development through issuance of GSS bonds. Unlike traditional bonds, GSS bonds finance projects with a positive environmental impact, social benefits, or a combination of both.

“Access to climate finance and green investment remains a key challenge that our nations face as they transition to a green economy. Through this cooperation, we aim to enhance our mutual efforts to increase green investment flows, strengthen capacity development, improve cooperation and evidence-based planning, and strengthen our collaboration to accelerate green growth in the WAEMU region,” Dr. Edoh Kossi Amenounve, BRVM Chief Executive Officer (CEO), said.

The GGGI-BRVM partnership provides a framework for collaboration in line with the 2030 Agenda for Sustainable Development and Paris Agreement on climate change. Together GGGI and BRVM will develop tailored awareness and education programs on opportunities and approaches related to sustainable and green bonds issuance targeting stakeholders in the West African Economic and Monetary Union. They will also hold an ‘Accelerator Program’ to develop a robust framework for GSS bonds issuance in the target countries through partnerships with public and private actors in each
country.

Dr. Malle Fofana, Africa Regional Director for the GGGI noted: “By entering this strategic partnership, we aim to jointly explore opportunities to attract investments and support climate-related work across the region. We will continue to leverage the power of partnership and collaboration with the public and private actors to facilitate access to much-needed green investments in order to pave the way for a greener and more resilient future in West Africa.”

As part of the agreement, BRVM and GGGI will hold regular consultations to review the planning, implementation, and outcomes of cooperation and to identify opportunities and follow-up activities to improve cooperation.

Africa accounts for less than 1% of global GSS bond issuances in a market that is estimated to be around 4.9 trillion US dollars. Africa has a gap of $200 – 400 billion per year by 2030 to bridge the gap in green climate finance, according to the World Economic Forum. This gap poses a significant threat to Africa’s efforts and ability to respond to the impacts of climate change.