NIFC Africa, Swiss Firm To Pilot Capital Markets Link

The Nairobi International Financial Centre (NIFC Africa) has signed a cooperation agreement with Swiss technology company New Wind Ventures to develop and test a framework connecting participants in the Swiss banking sector with Kenya’s capital markets.

The agreement was signed by NIFC Africa CEO Daniel Mainda and New Wind Ventures CEO Veronica Almedom on the sidelines of the 81st Session of the United Nations General Assembly in New York. The signing took place at the Consulate General of Switzerland and was witnessed by Joachim Tomaschett, Deputy Consul General of Switzerland. The proposed pilot will focus on improving the quality and reliability of capital markets data, increasing transparency across transactions and exploring the use of tokenisation within Kenya’s existing regulatory framework.

The two organisations also plan to develop a recurring pipeline for opportunities connecting Swiss financial sector participants with Kenya’s capital markets. Mainda said the initiative is intended to address some of the information and transparency challenges that can affect cross-border investment.

“This is not technology for technology’s sake,” Mainda said. “It is about using technology to reduce information asymmetry, strengthen confidence, lower transaction costs and ultimately move more capital into productive, job-creating opportunities in Kenya.”

Under the agreement, New Wind Ventures will contribute technology capabilities, relationships within the Swiss market and international execution experience, while NIFC Africa will provide its institutional platform, regulatory connections and access to Kenya’s financial ecosystem. Mainda further said that the parties are looking to develop a framework that could eventually be applied beyond Kenya.

The intention, Mainda said, is to “turn Swiss confidence into scalable opportunity in Kenya” and establish a model that can eventually serve markets across the continent. This initiative comes as Kenya seeks to strengthen its position as a regional financial centre and attract international capital into its financial services and technology sectors.

NIFC certification provides qualifying firms with access to various state incentives, including tax benefits, while certified companies are required to establish a physical presence in Kenya. In July, NIFC Africa announced the admission of 15 new firms, which it said were expected to mobilise a combined KSh25.8 billion, equivalent to about $200 million, and create more than 1,000 jobs.

New Wind Ventures is based at EPFL Innovation Park in Prilly, Switzerland. The company works with investors, governments, businesses and institutional partners on initiatives involving capital and investment opportunities in African markets.

The pilot will provide a framework for the two organisations to assess how technology can support data quality, transaction transparency and cross-border participation in Kenya’s capital markets.