Nairobi, Kenya, November 16, 2009—IFC
and the World Bank, in partnership with the Swedish
International Development Cooperation Agency,
are helping train fund managers in Kenya as part of a program to strengthen
securities markets in the country and increase the availability of long-term
funding for infrastructure and other projects.
IFC and the World Bank, through the Efficient Securities Market Institutional
Development Initiative (ESMID) Program, in collaboration with Kenya’s
Capital Markets Authority, Retirement Benefits Authority and Insurance
Regulatory Authority, conducted a two-day workshop in Nairobi with about
100 key local fund managers to discuss alternative investment options,
including infrastructure financing through capital markets, corporate bonds,
asset backed securities, real estate investment trusts, property investing
and the mortgage finance market.
Edward Odundo, CEO of Kenya’s Retirement Benefits Authority, said “This
workshop demonstrates the desire of IFC and the World Bank jointly with
Kenya’s regulatory authorities to work towards deepening the capital markets
in our country, in order to foster access to long-term investment assets
that support infrastructure development and increase economic growth”
The workshop, launched by the Honorable Uhuru Kenyatta, Kenya’s Deputy
Prime Minister and Minister for Finance, helped fund managers explore available
investment options, ways in which they can diversify their investment portfolios
and in turn advance economic development in Kenya.
Jean Philippe Prosper, IFC Director, Eastern and Southern Africa, said,
“The ESMID program aims to deepen local securities markets with a goal
of supporting key economic and social development needs, including infrastructure
and housing development, private sector access to finance, investments
for pension funds, and also financial crisis management in Africa”
The workshop, result of the intense collaborative effort between the World
Bank Group and Kenya’s regulatory authorities, gathered experienced and
reputable speakers from Australia, Colombia, Kenya, Nigeria, Peru, South
Africa and United Kingdom, who shared their experiences on alternative
In Kenya, Rwanda, Tanzania and Uganda, ESMID supports the efforts of central
banks, securities' regulators, stock exchanges and other stakeholders to
simplify regulations and procedures for issuing and trading bonds, establish
an appropriate market structure, strengthen secondary markets, build capacity
of market participants and facilitate the regionalization of the markets.
ESMID advised Kenya’s government, central bank and Capital Markets Authority,
on the launch of the first infrastructure bond in Kenya, issued in February
2009, which raised $300million for various infrastructure projects in Kenya.
IFC is the only international financial institution focused exclusively
on the private sector, the engine of sustainable development in emerging
markets. Along with IBRD, it is currently seeking a capital increase to
strengthen its ability to create opportunity for the poor in developing
countries including by helping to improve securities markets and increase
the availability of long-term funding for key development sectors.
About the Efficient Securities Market Institutional Development Initiative
in Africa (ESMID)
The Efficient Securities Market Institutional Development Initiative (ESMID)
- a joint initiative by the Swedish International Development Cooperation
Agency, IFC and the World Bank - aims to develop well functioning securities
markets, in particular bond markets, to finance investments where long-term
local currency funds are necessary such as housing and infrastructure.
ESMID project aims to develop well functioning securities markets in
Africa. Under ESMID program, the three institutions will provide support
to emerging African capital markets. Support is channeled to regulators
and other market participants in order to build or strengthen marketplaces
and institutions that form the core of the securities industry. The Swedish
International Development Cooperation Agency has provided US$5.5 million
to support the program activities. ESMID supports securities markets regulators
to improve their regulatory expertise, and to design effective regulatory
environments for long term capital mobilization. On the supply side, the
program supports potential issuers and intermediaries to bring transactions
to the securities markets. The program initially targets five countries,
namely Kenya, Nigeria, Rwanda, Tanzania and Uganda and aspires to expand
to other countries in Africa.
About the World Bank Group
The World Bank Group is one of the world’s largest sources of funding
and knowledge for developing countries. It comprises five closely associated
institutions: the International Bank for Reconstruction and Development
(IBRD) and the International Development Association (IDA), the International
Finance Corporation (IFC); the Multilateral Investment Guarantee Agency
(MIGA); and the International Centre for Settlement of Investment Disputes
(ICSID). Each institution plays a distinct role in the mission to fight
poverty and improve living standards for people in the developing world.
For more information, please visit www.worldbank.org,
www.miga.org, and www.ifc.org.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $14.5
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.