Investment in climate transition, SDGs takes new trajectory as NGX partners UK

By Cynthia Ezekwe.

The Nigerian Exchange Limited (NGX) has  partnered with the UK government’s Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) programme, to scale up  investment towards  achieving the United Nations sustainable development goals (SDGs) in Africa through products listed on the exchange.

The partnership was made known  by James Cleverly, UK foreign secretary, during his recent visit to the Exchange in Lagos,  Nigeria.

Cleverly noted that  collaboration between MOBILIST and NGX can help to catalyse and scale up public market investment products that support the climate transition and SDGs.

MOBILIST  is a flagship UK public markets programme. It works by competitively sourcing and selecting emerging and frontier market investment products that support the climate transition and Sustainable Development Goals (SDGs) and channelling investments towards them.

The MOBILIST programme aims to unlock the potential of public capital markets for sustainable finance in emerging markets and developing economies.

Data from the  Organisation for Economic Co-operation and Development (OECD) disclosed that   Africa’s sustainable financing gap until 2030 amounts to about $1.6 trillion and the continent needs about $194 billion in additional funding annually to achieve the SDGs by that year.

In light of the above, MOBILIST was created to help direct some of the $250 trillion in private capital currently held in products listed on global stock exchanges to help meet this financing gap.

Commenting on the partnership, the UK foreign secretary, SAID, “Today, I announce a new partnership between Nigerian Exchange and MOBILIST that will bring capital markets more squarely into financing economic development. It will support the climate transition and the achievement of the UN Sustainable Development Goals (UN SDGs).

According to Cleverly, MOBILIST supports new listings on public stock exchanges, stating that it could be in Nigeria, Johannesburg or London, adding that the support could be technical, research based, or could include equity investment from the UK government.

“Developing countries need at least $3.9 trillion in additional financing per year to achieve the SDGs. MOBILIST will help. And it’s just one of the British investment partnership’s programmes,” he  added.

 On his part, Abubakar Mahmoud, Chairman, NGX stated, “The UK remains Nigeria’s critical partner; especially in the areas of trade, exports, business, and investment and we welcome its government’s partnership on MOBILIST, which is in line with NGX long-term interest to direct greater investments towards achieving the UN SDGs through listed products. We will continue to forge strong partnerships that will foster the sustainable development of the Nigerian economy.”

Temi Popoola, NGX’s CEO noted that NGX remains firmly dedicated to promoting sustainable finance in Nigeria, stating that the commitment drives the Exchange  to continuously seek strategic partnerships with key stakeholders, including the UK government.

“The Exchange, in collaboration with the Nigerian Government and industry stakeholders, played a leading role in advocating for and successfully issuing the inaugural green bond in 2017. Our collaboration on the MOBILIST program aims to further enhance our efforts in making the Nigerian capital market an attractive hub for investments that foster sustainable capital formation,”  Popoola added.