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ABU DHABI / WAM
Abu Dhabi Global Market (ADGM), has expanded its sustainable finance outreach to Kenya. The Financial Services Regulatory Authority (FSRA), of ADGM and the Capital Markets Authority (CMA), of Kenya entered into a Memorandum of Understanding on Wednesday to enhance cooperation in sustainable finance in each other’s markets.
Paul Muthaura, Chief Executive of CMA, and Philippe Richard, Executive Director-International Affairs of ADGM’s FSRA, signed the MoU.
This partnership was formed following close discussions and continuous coordination between the two parties to scale up the development of sustainable finance in both jurisdictions and builds on an existing partnership to support financial technology.
The MoU provides a framework for the two sides to exchange information pertinent to products, services, and initiatives as well as to develop, legislative, regulatory and institutional frameworks to enable both parties to facilitate and support sustainable finance.
Following the signing of the agreement, Muthaura said, “This strategic partnership between CMA and FSRA underscores the importance of sustainable finance and the intangible value drivers within environmental, social and governance perspectives. This initiative has come at an opportune time as sustainable finance is expected to play an important but niche role in driving the growth of Kenya’s capital markets. This is in line with the Marrakech Pledge which calls for an increase in the volume, flow, and access to finance for climate projects, alongside improved capacity and technology from developed to developing countries.”
Richard Teng, chief executive of the Financial Services Regulatory Authority (FSRA) at ADGM, in turn, stated, “ADGM’s partnership and relationship with CMA began in 2017 on FinTech where we shared mutual objectives of fostering innovation, financial inclusion and regulator cooperation. We are pleased to continue this cooperation with CMA to promote sustainable capital formation and deployment of financing as part of the commitment to our countries’ green economy strategies and agenda.
He added that ADGM aims to foster responsible and sustainable methods that support the development and growth of the two sides.