Uganda’s forests are emerging as a compelling example of how climate finance can deliver measurable results when backed by strong governance, credible data, and long-term policy commitment. Despite decades of deforestation driven by agriculture and energy demand, Uganda has shifted toward a coordinated national approach aligned with its REDD+ Strategy and Paris Agreement commitments. Since 2022, the country has protected approximately 2.5 million hectares through improved forest monitoring, enforcement, and sustainable land-use initiatives. With robust systems for measurement, reporting, and verification, Uganda is well positioned to benefit from emerging mechanisms like the Tropical Forest Forever Facility (TFFF), which prioritizes performance-based, long-term financing. While challenges remain, Uganda’s experience demonstrates that climate finance can work at scale when transparency, accountability, and community engagement are in place.
Category: Finance
Finance insights covering banking, fintech, investment, financial services and market developments shaping Africa’s economy.
What Africa’s Stablecoin Boom Means for its Financial System
Africa’s stablecoin market is experiencing unprecedented growth, reshaping the continent’s financial system. Stablecoins—digital assets pegged to the US dollar—are increasingly used for cross-border payments, remittances, and preserving earnings in volatile currencies. Countries like Nigeria and South Africa lead adoption, with stablecoins accounting for a growing share of cryptocurrency transactions. Integration with mobile money, wallets, and banks is driving mainstream usage, while regulators in Mauritius, Kenya, Ghana, Uganda, and South Africa are establishing frameworks for virtual asset service providers. As stablecoins reduce transaction costs, enhance liquidity management, and support trade finance, they are becoming a key component of Africa’s fintech ecosystem and financial inclusion strategies.
The African diaspora: an overlooked financial powerhouse that exceeds international aid
The African diaspora has emerged as a powerful yet underrecognized financial force, sending nearly $100 billion annually to the continent—surpassing both foreign direct investment and official development assistance combined. This steady flow, equivalent to a modern-day “Marshall Plan,” plays a critical role in supporting households and stabilizing economies across Africa. However, most remittances are directed toward basic needs rather than long-term investment, limiting their transformative potential. Despite being highly educated and economically integrated, the diaspora remains largely excluded from structured development strategies. Unlocking this untapped capital through better coordination, policy frameworks, and investment channels could turn diaspora remittances into a major engine for sustainable economic growth in Africa.
How $170 Million in Credit Is Driving Financial Inclusion in Nigeria
M-KOPA has unlocked $170 million in credit in Nigeria, empowering over 1 million customers and accelerating financial inclusion across the country. Through affordable smartphone financing, flexible digital loans, and partnerships with MTN and Airtel, the fintech platform is driving income growth, supporting women’s access to formal credit, and expanding opportunity for everyday earners in Nigeria’s rapidly digitising economy.
2026 ushers in crypto tipping point for African merchants
2026 marks a crypto tipping point for African merchants as stablecoins move rapidly into the mainstream. Sub-Saharan Africa recorded over $205 billion in on-chain value between July 2024 and June 2025, with 52% year-on-year growth, making it the world’s third-fastest growing crypto market. Stablecoins now account for more than 45% of regional crypto volume, driven by cross-border trade, faster settlements, and reduced forex costs. With clearer regulation in South Africa, Kenya, and Nigeria, and growing institutional adoption, companies like Ezeebit believe African merchants are approaching an inflection point where crypto payments shift from “if” to “when.”
Investment in African fintech is key to the continent’s growth
African fintech is emerging as a high-impact investment opportunity, fueling economic growth across healthcare, education, agriculture, and climate resilience. Between 2015 and 2022, African tech firms receiving funding grew sevenfold, with fintech leading the way and producing eight of the continent’s nine unicorns. By enabling access to mobile finance, microloans, and innovative payment solutions, fintech creates ripple effects that strengthen infrastructure, support smallholder farmers, expand low-cost healthcare, and transform education. Investing in African fintech is not only a smart financial decision but also a catalyst for long-term socio-economic development and climate resilience.
Why Afreximbank’s Break with Fitch Exposes a Deeper Rift
The decision by African Export-Import Bank (Afreximbank) to terminate its relationship with Fitch Ratings following a downgrade to non-investment grade marks a pivotal moment in Africa’s financial landscape. The dispute centers on whether global rating agencies fairly assess multilateral development banks (MDBs) using methodologies designed primarily for commercial banks. Afreximbank argues that its treaty-based legal protections and shareholder backing were inadequately reflected in Fitch’s framework. This confrontation highlights broader concerns across the continent about perceived bias by major rating agencies and raises critical questions about credit rating standards, sovereign risk assessments, and the future of African development finance.
Africa’s Capital Markets Are Moving Again. Here’s How.
Africa’s capital markets are showing renewed activity as liquidity returns and borrowing costs ease, opening new opportunities for corporate financing. The recent oversubscribed KES 16.7 billion bond by East African Breweries highlights growing investor appetite and the potential for creative funding structures across the continent. While Africa’s corporate bond market remains underdeveloped—accounting for just 0.1% of global corporate bonds—syndicated loans, blended finance, and structured solutions are on the rise. Regulatory frameworks are supportive, but scale, market understanding, and flexibility determine access and outcomes. Innovation, new financial products, and demonstrated transaction execution will be key to unlocking Africa’s capital markets and channeling domestic savings into long-term investments beyond South Africa.
Multifamily rental housing is now one of South Africa’s most resilient and investable property sectors
Multifamily residential rental housing is emerging as one of South Africa’s most resilient and investable property sectors, supported by stable demand, high occupancies, improving macroeconomic conditions and growing institutional capital. Insights shared by SAMRRA, Absa CIB and industry experts highlight strong portfolio performance, low vacancy rates above 95%, and sustained rental growth aligned with inflation. With professional management, purpose-built assets and a significant housing shortfall in the “missing middle” market, multifamily rental housing is increasingly recognised as a core, defensive asset class driving long-term value, urban regeneration and inclusive economic growth in South Africa.
Absa CIB closes USD72 million aviation financing facility with AELF to support fleet expansion across Africa
Absa Corporate and Investment Banking (CIB) has successfully arranged a USD72 million structured aviation finance facility with Aircraft Engine Lease Finance (AELF) to expand its aircraft fleet across Africa. Acting as Mandated Lead Arranger and Senior Lender, Absa CIB enables AELF to increase leased aircraft for African carriers, enhancing regional connectivity, aviation infrastructure, and job creation in the aviation sector. The deal reflects Absa CIB’s expertise in commercial aircraft leasing, aviation finance solutions, and structured asset finance. This partnership strengthens long-term collaboration between Absa and AELF, supporting sustainable growth in Africa’s aviation industry, airline operations, and fleet financing strategies.