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Fostering peace-positive financing for Africa
The Finance for Peace Initiative and the Africa Development Bank have signed a Memorandum of Understanding to create capacity for peace-positive investments. In a chat with CNBC Africa on the side-lines of the Africa Resilience Forum 2023, Rosy Khanna, the Executive Director of the initiative, says there’s a need for peace financing to address the impact of conflicts and humanitarian insecurity in Africa.
Wed, 11 Oct 2023 08:34:57 GMT
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AI Generated Summary
- The Finance for Peace Initiative and the Africa Development Bank signed a Memorandum of Understanding to create capacity for peace-aligned investments in Africa in response to the impact of conflicts and humanitarian insecurity on almost two billion people living in fragile and conflict-affected states.
- The initiative led by Rosy Khanna seeks to establish frameworks and standards for peace finance, provide market intelligence, and foster partnerships to drive peace-aligned investments, highlighting the importance of post-project monitoring and evaluation.
- Engaging investors in the complex nexus of peace, security, and humanitarian needs is crucial, with the initiative working to demystify peace finance, make it a recognized asset class, and create an enabling environment for investments in fragile zones.
In a groundbreaking move towards fostering peace-positive financing for Africa, the Finance for Peace Initiative and the Africa Development Bank have recently signed a Memorandum of Understanding. The aim of this collaboration is to create capacity for peace-aligned investments in a continent plagued by conflicts and humanitarian insecurity. Rosy Khanna, the Executive Director of the Finance for Peace Initiative, emphasized the urgent need for peace financing to address the impact of conflicts on almost two billion people living in fragile and conflict-affected states. These populations make up 75% of the world's extreme poor, underlining the crucial importance of innovative financial models to support peace, security, and humanitarian development. Khanna, a seasoned development banker with a three-decade background in impact investing, highlighted the multifaceted approach taken by the Finance for Peace Initiative. The initiative, incubated by Interpeace, a peace-building organization, aims to create frameworks and standards for peace finance, turning it into a recognized asset class for sustainable investing. Additionally, the initiative focuses on providing market intelligence on peace finance and fostering partnerships to drive peace-aligned investments. During her chat with CNBC Africa, Khanna unveiled the newly forged partnership with the African Development Bank aimed at building capacity, offering advice, and creating partnerships in the realm of peace finance in Africa. The Memorandum of Understanding signed with the bank is set to enable the identification and implementation of projects that are peace positive and conflict sensitive. One such project is currently underway in northern Mozambique, targeting investments that can uplift local communities and break the cycle of poverty. Khanna highlighted the importance of post-project monitoring and evaluation to ensure the success of peace-aligned investments. Engaging investors in this complex nexus of peace, security, and humanitarian needs is a crucial aspect of the initiative's journey. Khanna emphasized the necessity of investors getting comfortable with the idea of peace finance and understanding the frameworks and standards that underpin it. The Finance for Peace Initiative aims to demystify peace finance, making it a viable and recognized asset class in the market. Despite the challenges, Khanna expressed optimism about investors' eagerness to deploy capital towards impactful projects in fragile zones. She stressed the importance of a public-private partnership approach and the need for the public sector to create an enabling environment for investment in post-conflict areas. Governance and reliable partners were also highlighted as essential elements to instill investor confidence. Regarding the feedback received from investors, Khanna mentioned the excitement and enthusiasm surrounding peace finance as a subject. She noted that investors are keen to engage in impactful projects that address the development challenges faced by billions of people in fragile states. Khanna's biggest takeaway from the conversations at the Africa Resilience Forum was the palpable enthusiasm and commitment to the cause of peace finance. She emphasized the importance of translating this enthusiasm into concrete actions that positively impact the communities in need. Moving forward, Khanna and her team are determined to advance the agenda of peace finance with the support of like-minded partners and stakeholders.
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