Developing a Sustainable Finance Taxonomy for the African Financial Sector

The African Financial Alliance on Climate Change (AFAC) and the Making Finance Work for Africa (MFW4A) organized a webinar on Developing a Sustainable Finance Taxonomy for the African Financial Sector on January 23, 2025 (11 am- 12.30 pm). 

The webinar was a key part of AFAC’s efforts to develop a Sustainable Finance Taxonomy for the African Financial Sector. It followed a series of stakeholder workshops and a benchmarking exercise against international best practices to gather insights on the strategic objectives, primary uses and users, sustainability goals, alignment criteria, and the sectors to be covered by the proposed taxonomy in late 2024. The objective of this webinar was to disseminate the findings of this exercise and:

• To promote awareness of the ongoing taxonomy design and engage a broader range of stakeholders in the process going forward;
• To share the initial scoping decisions that have emerged from the consultation and benchmarking process and identify potential barriers to the adoption of the taxonomy.

Watch a recording below;

The African Financial Alliance on Climate Change (AFAC) is a voluntary network of financial institutions. In the face of the urgent climate crisis, AFAC’s mission is to mobilize and direct private capital flows toward continent-wide low-carbon development on the African continent. One of the barriers to scaling up Green/ Sustainable finance across the African continent is the absence of fit-for-purpose financial regulations, standards, and/or taxonomies that can promote transparency and build trust in Africa’s capital markets. In this context, AFAC is facilitating the development of an African Sustainable Finance Taxonomy for the financial sector. The African ESG Taxonomy aims to assist financial stakeholders in Africa in classifying financial assets, transactions, and companies according to their contributions to achieving sustainability objectives that are relevant to the African context.