Microfinance operators have emphasized the importance of sustainable finance in the sector, aligning with the global recognition of the need to transition towards a sustainable economy.
This message was conveyed during the 8th annual symposium of the Nigerian Microfinance Platform, centered around the theme, "Sustainable finance: the next big thing for microfinance institutions in Nigeria."
The symposium, held both in Lagos and virtually, attracted participants from Nigeria and abroad. One of the prominent speakers at the event was Mwangi Githaiga, the Managing Director of KWFT Microfinance Bank in Nairobi, Kenya. Githaiga highlighted the timeliness of the symposium's theme and emphasized the importance of collaboration among stakeholders in the inclusive finance sector to address the challenges faced in sustainable finance.
Githaiga stated, "This symposium is an important opportunity for us to come together and share our knowledge and expertise on sustainable finance. By working together, we can make progress towards finding solutions and bridging the knowledge gap between the microfinance sector actors and Sustainable Finance Providers (SFPs) both locally and internationally."
He further expressed the expectation that the symposium would lead to the establishment of a sustainable finance working group. This group would focus on creating Nigeria's sustainable finance "taxonomies" and provide guidance to the platform regarding the implementation and usability of sustainability principles. Githaiga emphasized that such a working group could also facilitate investment and capital flow into sustainable activities within the sector, highlighting the vast untapped resources and funds available in the European Union for sustainability purposes and achieving the Sustainable Development Goals (SDGs) and the Paris Agreement.
During his presentation on "Sustainable finance - Trends from a European perspective," Prof. Ulf Moslener, the Head of Research at FS-UNEP Centre for Climate & Sustainable Energy Finance, underscored the need for change at the microfinance level and the significance of considering long-term climate scenarios. He encouraged corporates and financial institutions to evaluate their business models and activities within a hypothetical world, identifying both opportunities and risks associated with plausible climate scenarios.
The symposium served as a platform for industry experts to share insights and explore collaborative strategies to integrate sustainable finance practices into the microfinance sector. The discussions held at the event contribute to the broader goal of fostering a more sustainable and inclusive economy in Nigeria.
