PAFMA WELCOMES NEW MEMBERS IN AN ONGOING DRIVE TO BOOST CLIMATE FINANCE IN AFRICA

The Pan African Fund Managers Association (PAFMA) has announced the addition of new members to its roster. PAFMA is an esteemed trade association dedicated to enhancing climate financing across the African continent through private sector initiatives.

Since its landmark introduction at the Africa Climate Summit in 2023, the association has rapidly grown to nine members representing sixteen African countries and over 231 fund managers. The membership collectively oversees assets under management (AUM) exceeding US$ 120 billion.

The newly admitted members are: the Association of Moroccan Companies, the Investment Funds (ASFIM), the Namibia Savings and Investment Association (NASIA), the Association of Investment Managers of Zimbabwe (AIMZ) and the Association des Societes de Gestion et de Patrimoine (ASGOP) de l’UEMOA.

Climate financing

Africa stands at a critical juncture facing monumental financing gaps to achieve its sustainable development goals (SDGs) by 2030. With a staggering requirement of US$ 1.2 trillion, alongside an annual climate financing need nearing US$ 300 billion, the need for mobilizing significant capital for development priorities has never been more pressing.

PAFMA emerges as a beacon of hope in this landscape, spearheading efforts to bridge the chasm in climate finance through private sector initiatives. Central to its mission is the promotion of alternative investments, with a strategic emphasis on green finance which is heralded as a catalyst for propelling diverse sectors of the economy forward.

By championing these alternative avenues, PAFMA envisages stimulating job creation and bolstering income generation across the continent.

Localized collaborations

In its endeavor to realize these ambitions, PAFMA is committed to pioneering localized research initiatives and fostering a knowledge-sharing culture as well as capacity-building among fund managers. These initiatives aim to empower fund managers to assess and engage in investment opportunities within regions and countries where their presence was previously limited.

Furthermore, PAFMA assumes the mantle of a proactive advocacy, offering invaluable policy insights and championing the interests of its members in both regional and international forums. The association fosters a conducive environment for collaboration and networking among fund managers from diverse African landscapes, facilitating the exchange of ideas and best practices.

Private sector finance

Simultaneously, as Africa witnesses a surge in domestic institutional capital estimated between US$ 1 – 1.4 trillion, PAFMA recognizes the untapped potential of harnessing local institutional capital to boost the continent’s development agenda.

Unlocking this reservoir of private sector finance will complement constrained public finance amplifying local currency financing and fortifying Africa’s journey towards sustainable development.

PAFMA was founded by five founding members: the Fund Managers Association (FMA) in Kenya, the Pension Fund Operators Association (PENOP) of Nigeria, the Investment Management Association (IMAU) of Uganda, the Botswana Investment Professionals Society (BIPS) and the Ghana Securities Industry Association (GSIA).