The opportunity of Green, Social, and Sustainable(GSS) bonds to finance development in Africa

Abstract

The Economic Commission of Africa (ECA) and the World Bank held a virtual workshop to explore Green, Social, and Sustainable (GSS) bond market development in West Africa. The workshop was the first in a series of workshops to build awareness across Africa about the GSS bond market and initiate a program to aid countries interested in the issuance of bonds. Discussions at the workshop were lively. James Seward, Senior Financial Officer in the Capital Markets and Investments team of the World Bank Treasury, provided an overview of the global and regional GSS bond issuances. Of note, African entities have issued $3.2 billion in GSS bonds since 2014, but most have been corporates. The workshop produced several solutions to developing GSS bond markets in West Africa. These include the need for West African countries to establish a national investment framework that prioritizes green outcomes, sustainability, and climate resilience. Debt offices see great value in issuing GSS bonds to diversify the investor base, signal commitment to sustainable development, and raise new financing for climate and nature-focused projects.