In a significant step towards mobilizing climate finance across East Africa, Dhamana Guarantee Company Ltd (Dhamana), backed by the UK Government, has officially commenced operations. During a signing ceremony held in Nairobi on 30 September 2024, investors pledged support to Dhamana, marking a major milestone in the region’s push for long-term climate finance solutions.
Dhamana aims to boost private sector investment in sustainable businesses by offering credit guarantees to projects that tackle climate change. This initiative will help raise capital for businesses that promote sustainability and progress toward the UN’s Sustainable Development Goals (SDGs). The efforts will target key East African markets, including Kenya, Uganda, Tanzania, and Rwanda, by increasing access to affordable financing for sustainable infrastructure development.
Dhamana’s creation was led by the Private Infrastructure Development Group (PIDG) through InfraCo Africa, with investments from the African Development Bank (AfDB), CPF Group, and Cardano Development. The company will enhance the credit rating of debt instruments, attracting investments from pension funds, insurance firms, and sovereign wealth funds, and improving access to capital for businesses in East Africa.
The company’s CEO, Christopher Olobo, emphasized the company’s potential to create tangible impacts on local economies, stating, “Dhamana’s local currency guarantees will connect untapped capital with East Africa’s real economy, making a real difference in people’s lives.” Similarly, Leigh Stubblefield, Deputy High Commissioner, underscored the UK’s commitment to long-term investment, calling this initiative a “great pan-Africa partnership.”
The African Development Bank Vice President, Solomon Quaynor, highlighted that this investment aligns with the Bank’s priorities to deepen local debt markets and mobilize capital for infrastructure development. This partnership comes just days after the UK-backed MOBILIST signed an agreement with the Nairobi Securities Exchange to drive more private investment in climate projects across Kenya.
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