The IFRS Foundation and the African Development Bank (AfDB) have signed a letter of intent to collaborate on advancing sustainability-related disclosure practices in Africa. This partnership, announced during the Bank Group’s Annual Meetings in Nairobi, aims to engage African financial institutions, regulators, and policymakers to provide capacity building and technical assistance. The goal is to develop the knowledge and capabilities for effective sustainability disclosure, in compliance with the International Sustainability Standards Board (ISSB) Standards, to support investor decision-making. 

The Bank Group’s African Financial Alliance on Climate Change (AFAC) and the IFRS Foundation’s ISSB will lead this partnership. AFAC is a voluntary platform that unites diverse stakeholders within the African financial sector, including regulators, policymakers, and civil society, to collectively address climate change and promote sustainable finance. 

Dr. Akinwumi Adesina, President of the African Development Bank, expressed commitment to supporting markets across Africa in advancing sustainability disclosure practices. He emphasized that the partnership with the IFRS Foundation will deliver capacity building and assistance that will enhance transparency, accountability, and efficiency, ultimately mobilizing capital flows across Africa. 

Erkki Liikanen, Chair of the IFRS Foundation Trustees, thanked the African Development Bank for their partnership, emphasizing the priority of helping companies and jurisdictions develop the skills and capabilities to adopt the ISSB Standards. Emmanuel Faber, Chair of the ISSB, highlighted the perceived benefits of using the ISSB Standards for African companies to communicate about transition and physical risks, securing competitive advantages and attracting investment. 

The collaboration will also focus on developing training materials suitable for the African context. This partnership has garnered strong support from jurisdictions around the world, including Nigeria and Kenya, which have signaled their intent to adopt or use the ISSB Standards. 

Sources: 

https://www.ifrs.org/news-and-events/news/2024/05/ifrs-foundation-and-african-development-bank-to-join-forces-to-promote-sustainability-related-financial-disclosures/ 

https://finance.yahoo.com/news/ifrs-foundation-african-development-bank-231619384.html