A significant milestone in climate finance was achieved today as Dhamana Guarantee Company Ltd officially commenced operations during a ceremonial signing event in Nairobi. This pivotal moment is expected to transform the financial landscape of East Africa, with Dhamana leading the charge in mobilizing private sector finance for sustainable development.
The signing ceremony witnessed the convergence of influential investors committed to advancing projects that address climate change and promote the Sustainable Development Goals (SDGs). Dhamana aims to issue guarantees that will bolster commercially viable initiatives, enabling businesses and institutions to thrive while tackling pressing environmental challenges.
At the heart of Dhamana's inception is the support of the UK-Government backed Private Infrastructure Development Group (PIDG), which provided crucial anchor investments through InfraCo Africa. This collaboration attracted additional equity from the African Development Bank (AfDB) and CPF Group, alongside contributions from Cardano Development and FSD Africa. Together, they form a formidable alliance committed to fostering sustainable infrastructure across Kenya, Tanzania, Uganda, and Rwanda.
A catalyst for growth
Dhamana's innovative approach will enhance access to affordable finance for local businesses, reducing the capital needed to launch and scale projects. This accessibility will not only spur economic growth but also improve the quality of life for individuals across the region. By facilitating credit guarantees, Dhamana aims to attract investment from pension funds, insurance companies, and sovereign wealth funds, creating a robust ecosystem for sustainable business development.
Dhamana's CEO, Christopher Olobo, emphasized the company's commitment to being a catalyst for long-term sustainable finance in East Africa…
“With the support of our investors, Dhamana is set to connect untapped capital with real economic opportunities, making a tangible difference in people's lives.”
Global support for local initiatives
The event also highlighted the growing support from international partners dedicated to combating climate change. Leigh Stubblefield, Deputy High Commissioner and Development Director at the British High Commission in Nairobi, celebrated the partnership, noting that…
“this is a great pan-African collaboration that will improve the lives of East Africans.”
Furthermore, Gilles Vaes, CEO of InfraCo Africa, remarked on the importance of Dhamana as a model for credit enhancement facilities, stating…
“Dhamana will open up opportunities for investors and clients alike, engaging new partners in our urgent efforts to address the climate crisis.”
Towards a sustainable future
The African Development Bank’s Vice President for Private Sector, Solomon Quaynor, reinforced the potential of credit enhancement companies like Dhamana to leverage opportunities for infrastructure financing. He expressed a commitment to replicating this successful business model across other regions in Africa.
Dr. Hosea Kili, CEO of CPF Group, echoed this sentiment, highlighting the transformative power of innovative financial solutions in advancing sustainable growth and improving lives.
As the event concluded, Joost Zuidberg, CEO of Cardano Development, underscored Dhamana’s capacity to attract significant investments, paving the way for sustained economic growth in East Africa.
Looking Ahead
Dhamana's establishment marks a significant step toward enhancing the region's financing landscape and addressing critical infrastructure needs. With a focus on sustainable initiatives and local currency guarantees, Dhamana is poised to play a pivotal role in the economic development of East Africa, aligning with global climate goals while fostering local prosperity.
