The African Development Bank (AfDB) and the International Financial Reporting Standards (IFRS) Foundation have signed a letter of intent to enhance sustainability disclosure practices across Africa. This agreement, made during the AfDB’s 2024 Annual Meetings in Nairobi, aims to improve transparency and accountability in the region’s financial markets. Kevin Kariuki, AfDB Vice President for Climate, and Ndidi Nnoli-Edozien, ISSB representative, signed the agreement. AfDB President Akinwumi Adesina emphasized the importance of assessing Africa’s natural resources in GDP, while NNPC Group CEO Mele Kyari highlighted the commitment to supporting market sustainability.
The partnership targets African financial institutions, regulators, and policymakers to build capacity and knowledge for effective sustainability disclosures. The AfDB’s African Financial Alliance on Climate Change (AFAC) and the IFRS Foundation’s International Sustainability Standards Board (ISSB) will lead this initiative. AFAC aims to unite stakeholders to combat climate change and stimulate sustainable finance
AfDB President Akinwumi Adesina confirmed the bank’s dedication to supporting sustainability disclosure practices and mobilizing climate finance. ISSB Chair Emmanuel Faber noted the benefits for African companies in adopting ISSB standards for securing competitive advantages and attracting investment. Hassatou N’Sele, AfDB Group CFO, praised the IMF Board’s decision to authorize the channelling of Special Drawing Rights to multilateral development banks. Erkki Liikanen, Chair of the IFRS Foundation Trustees, stressed the importance of developing skills to adopt ISSB standards. Rania A. Al-Mashat, Egypt’s Minister for International Cooperation, urged international financial institutions to bolster private sector access to climate finance.
The introduction of ISSB standards is backed by Nigeria and Kenya, among other jurisdictions, to improve transparency, accountability, and efficiency. Training materials will be developed to suit the African context, promoting widespread adoption of ISSB standards.
Source: Africa Development Bank News
