Inadequate Financial access for SMEs continues to drag behind green finance growth in Kenya
Despite Kenya being recognized as a Green Finance leader in the UNEP according to the inquiry report of July 2016, the type of financial investment is still struggling to take off due to factors pertaining to the financial sector regulators, financial institutions and SMEs.
The African Guarantee Fund (AGF), the International Trade Centre (ITC) and the Nordic Development Fund (NDF) held the Green Finance Conference in Nairobi with key discussions zeroing in on funding of climate change mitigation and adaptation; climate conscious investments; the risk climate change poses to a financial institution’s portfolio; and the potential for climate change regulation to spur the development of new products and services for individuals and SMEs.
Insufficient capital investment
The general agreement among stakeholders is that there is a strong correlation between the sustainability of the Africa economic growth that we are looking for and the energy consumption and more generally, environmental issues. According to them, the insufficient supply of energy across the continent across the continent affects all aspects of development more specifically social economic, environmental and even quality of life.
“Economic growth can only be meaningful if it is inclusive and sustainable. Economic opportunities for this generation must also deliver improved livelihoods and working conditions for the next. That’s why promoting green business models and green trade must be at the heart of all we do,” said Mr. Anders Aeroe, Director, DEI, and International Trade Centre (ITC).
However, the rapidly expanding green finance around the world represents a huge opportunity for the African economies. Development and climate finance institutions can assist, as they can be catalysts for green finance, both on supply and demand side.