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FSD820S-FINANCING SUSTAINABLE DEVELOPMENT -1ST OPP-NOV 2025 |
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nAmlBIA unlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
QUALIFICATION: POST GRADUATE DIPLOMA IN DEVELOPMENT FINANCE
QUALIFICATION CODE: 08PGDD
COURSE CODE: FSD820S
SESSION: NOVEMBER 2025
LEVEL:8
COURSE NAME: FINANCING SUSTAINABLE
DEVELOPMENT
PAPER: THEORY AND APPLICATION (PAPER 1)
DURATION: 3 HOURS
MARKS: 100
FIRS OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER Dr Saara Hamunyela
MODERATOR Dr Canicio Dzingirai
INSTRUCTIONS
1. This question paper consists of FOUR (4) questions.
2. Answer ALL FOUR (4) questions in blue or black ink only. NO PENCIL and TIPEX,
3. Start each question on a separate (new) page and number the answers correctly and
clearly.
4. Questions relating to this examination paper may be raised in the initial 30 minutes after
the start of the examination. Thereafter, candidates must use their initiative to interpret any
perceived error or ambiguities, and any assumptions made by the candidate MUST be
clearly stated for consideration.
PERMISSIBLE MATERIALS
1. None
THIS QUESTION PAPER CONSISTS OF _3_ PAGES (including this front page)
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QUESTION 1
[25 MARKS]
Finance, economic growth and development
Sustainable development is development that meets the needs of the present without
compromising the ability of the future generations to meet their own needs. It is a concept
that balances social progress, economic development, and environmental protection .
Sustainable development requires aligning financial systems with environmental , social,
and economic priorities.
REQUIRED:
MARKS
a) Define sustainable development and explain the role of finance in
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enabling or hindering sustainable development.
b) With the aid of illustrative examples, provide a detailed analysis of the
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characteristics that makes a financial instrument "sustainable"?
c) Discuss how governments can create an enabling environment for 12
sustainable finance.
QUESTION 2
[25 MARKS]
The role of institutions and regulation
Fragile economies face unique regulatory challenges due to conflict, institutional
weaknesses, and economic instability. In such contexts, financial regulation must strike a
careful balance between promoting resilience and supporting inclusive development.
REQUIRED:
MARKS
a) State and explain why financial regulation is particularly important in
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fragile economies.
b) Using illustrative examples, critically assess the role of institutional
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quality in promoting financial development and sustainable economic
growth. NB: Your answer must clearly articulate why institutions may be
more important than finance in development context.
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QUESTION 3
[25 MARKS]
Challenges and opportunities of sustainable development
The presence of climate externalities poses a significant challenge to the effective
integration of sustainability considerations in finance.
REQUIRED
MARKS
a) Define climate externalities and explain why such externalities are often
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not priced into financial markets.
b) Critically evaluate the limitations of the neoclassical economic models
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in addressing sustainability challenges such as climate change.
c) Discuss the roles of government, civil society, and corporates in
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internalising Environmental, Social and Governance (ESG)
externalities, highlighting the complementarities and tensions between
these actors.
QUESTION 4
[15 MARKS]
Financing sustainable development
Sustainable investment strategies are investment approaches that explicitly incorporate
environmental , social, and governance (ESG) factors into financial decision-making to
achieve long-term financial returns while promoting positive social and environmental
outcomes.
REQUIRED:
MARKS
a) Using example, critically evaluate any three (3) sustainable investment 15
strategies, illustrate how each strategy, integrates Environmental, Social
and Governance (ESG) factors into financial decision-making. Also,
discuss their strengths and limitations in promoting sustainability.
b) Discuss the role of blended finance in addressing Africa's development 10
financing gap. Hint: Your discussion should define blended finance ,
explain its key structures and mechanisms, and critically assess the
benefits and challenges of blended finance in the African context.
END OF EXAMINATION PAPER
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