Green bonds are viewed as a local solution for raising funds for activities that promote environmental protection in energy, agriculture, waste management, water, transport and urban planning.
Central Bank of Kenya (CBK) Governor Patrick Njoroge has said guidelines for banks to float green bonds are being finalised and will create a ‘patient’ funds pool for farmers.
Dr Njoroge said banks as well as impact investors will have a new investment vehicle that not only presents them with a ready source of high returns, but supports food production.
The bonds are viewed as a local solution for raising funds for activities that promote environmental protection in energy, agriculture, waste management, water, transport and urban planning.
“Two thirds of Africans practise agriculture as a commercial activity and it contributes up to 40 per cent of Africa’s gross domestic product.
Innovative ways should be mooted to support commercialisation of agriculture thereby making it attractive as well as enhance food production,” he said.
He spoke during a two-day forum convened by the Africa Rural and Agricultural Credit Association (Afraca) where speakers emphasised the need to promote impact investments in agricultural ventures.
Afraca chairman Million Narh urged the government to invest heavily in improving agricultural practices, saying reliance on manual and rain-fed farming was no longer tenable to feed the growing population.
The seminar attended by participants from 15 African countries heard that governments must support use of digital and mobile innovations that enhance financial inclusion especially for the rural population who remain unbanked to date.
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