Viability of Gender Bonds in Sub-Saharan Africa: A Landscape Analysis and Feasibility Assessment

Gender lens investing (GLI) is based on the premise that investing in companies that promote gender equality through their internal policies or through their business activities is not only morally responsible but can lead to higher financial returns. To date, the majority of GLI has been carried out through dedicated investment vehicles such as Alitheia, a Nigerian private equity fund which uses a gender lens approach, or initiatives such as the IFC’s Banking on Women (in conjunction with Goldman Sachs’ 10,000 Women).

Now, a number of development finance institutions (DFIs), development agencies and investor groups are looking to expand the footprint of GLI, popularise gender considerations in investing and provide greater clarity about GLI. 

Gender bonds, as a recent development in both the themed bond space and in the GLI space, are still relatively poorly defined, beyond being bonds that support the advancement, empowerment and equality of women. No official or universal definition exists, and there are currently no dedicated guidance principles on how to issue a gender bond, nor any specific eligibility criteria for use of proceeds.

Kore Global worked together with Lion’s Head Global Partners to conduct a global and country-specific (Kenya, Nigeria, South Africa) landscaping analysis and feasibility assessment of gender bonds for FSD Africa. The assessment included a detailed description and analysis of experiences and lessons learnt from gender bond issuances in other jurisdictions outside of sub-Saharan Africa, and insights and recommendations specific to Kenya, Nigeria and South Africa. 

Kore Global provided gender equality and WEE-specific research and advisory support and advice, coordinated the high-level advisory group for the scoping study, and supported wide dissemination of the work through reports and webinars.