The Governor Central Bank of Kenya, Dr Patrick Njoroge has said that Africa must develop an Exchange rate policy which flexible.
EAC Industry Markets

Africa should have a flexible exchange rate – Dr Njoroge

The Governor Central Bank of Kenya, Dr Patrick Njoroge has said that Africa must develop an Exchange rate policy which flexible.

“Africa is the continent of the future in terms of numbers in population, workforce and the future of work. Numbers are stacked in Africa and people are here looking to make investments.”

“The Exchange rate policy is that we should have a flexible exchange rate. The only thing to do is to minimize volatility,” he said.

The Governor who was speaking during the 5th Annual East Africa Investor Conference in Nairobi said it should be done as an alternative to minimize volatility.

The conference, that was hosted by Renaissance Capital, is themed around the Environmental, Social and Governance (ESG)-based approach to investments and discussions between corporates showcase how improvements in ESG can have a positive impact on performance and valuations.

Stanley Kariuki the Renaissance Capital’s Kenya CEO, said they are focusing on the ESG approach to investment because they feel that it is about time they looked at the broader impact and contribution that companies can make as they go about their operations.

“Countries that invest with a focus on ESG can overcome many other challenges, and the inclusion of the ESG approach to investment can lead to improved business and economic performance, generating greater benefit for Kenya and the African continent as a whole,” said Kariuki.

The ESG panel session gathered speakers representing companies from different sectors of the East African economy.

Geoffrey Odundo, CEO, Nairobi Stock Exchange said the Nairobi Stock Exchange wants to see the impact of ESG standards on communities.

“One of the important elements of setting these standards is running a diversity programme, ensuring that more women are brought on board.”

Nevin Bradford, CEO, CIPLA QCIL said they were set up to have a positive impact on the availability of pharmaceuticals in Uganda and across the continent.

“Our ultimate intent is to always make the most up-to-date available malaria and HIV treatment for Africa and African patients.”

Steven Chege, Director, Corporate Affairs, Safaricom stressed that they incorporate ESG through getting innovative products to cater for all our clients’ needs.

“We apply nine of the Sustainable Development Goals (SDGs), which are championed by different divisions. Through technology, we have been able to measure our carbon footprint, including having cooling systems for data centres.”

John Mudany, Director Finance & ICT, KenGen noted that they work within the community in order to restore livelihood, empower the community and raise employment.

“Any project or investment is preceded by an environmental check, where potential investors are taken to the sites to do their own research and surveys.”

Seddiq Hassani, CEO, Bamburi Cement said they align to high standards.

“In 2014, we came up with key four pillars for sustainable development, which are climate and energy, sustainable economy, environment and community. We also have a code of business conduct which works on a zero-tolerance approach.”

Mohammed Sarro, Manager, Treasury and Revenue, Kenya Power said they seek to be a law-abiding company through a staff self-assessment process.

“We have taken steps to address governance issues by implementing policies on codes of conduct and ethics, conflict of interest, and gifts. These policies have been instrumental in creating accountability.”

Now in its fifth year, Renaissance Capital’s East Africa Investor Conference is the Firm’s major regional investor event, in addition to the North Africa Investor Conference, the Pan-Africa Investor Conference and the Russia Investor Conference.

A top-three equities broker on the Nairobi Stock Exchange (16.64% market share, 1H19), Renaissance Capital provides a full scope of investment banking and trading services as well as research products in Kenya.

In 2019, the Firm launched a FICC desk to capitalise on its strong expertise in Eurobond coverage and liquidity provision.