The African Development Bank (AfDB) Group warns again that Africa is extremely vulnerable to climate hazards.
The bank claimed in a statement published on its website on Tuesday that Africa contributed the least to global pollution.
It was acknowledged in the declaration that African countries generally were experiencing difficulties in obtaining sufficient funding.
“Thus, resources from the international private sector, including multilateral development financiers such as the AfDB, are helping to catalyse climate action and green growth.
“For AfDB, greater involvement of the private sector is crucial to closing the gap in climate finance flows into Africa, which until recently, was dominated by non-private actors.
“For example, of the 29.5 billion dollars invested in African climate finance in 2020, only 14 per cent was from private actors,’’ the statement said.
Comparatively, the percentages for East Asia and the Pacific (39%), South Asia (37%), and Latin America and the Caribbean (49%), are much higher.
According to the report, these meagre resources encompassed a number of African countries with reasonably sophisticated financial markets, including South Africa, Nigeria, Kenya, Morocco, and Egypt (together attracting $4.2 billion).
“It is why the Bank Group has mobilised private sector financing for climate and green growth the centrepiece of its 2023 Annual Meetings scheduled for 22-26 May in Sharm El Sheikh, Egypt.
“The meetings will discuss successful strategies to galvanise more resources, including within Africa, and investment opportunities in renewable energy and sustainable agriculture.
“The Bank’s Governors, representing its shareholders, will be joined by global experts and development financiers, to deliberate on a new architecture for mobilising resources for sustainable investment in Africa,’’ it stated.
The experts, according to the statement, will deliberate over how to use Africa’s abundant natural riches to fund climate and green growth.
It also stated that a dozen or more leaders of state and government were anticipated.
It said: “The AfDB believes there is much potential for climate finance in Africa to increase. The bank bases its view on a dataset of global private resources.
“Private equity funds under management was 6.3 trillion dollars in 2021, while global pension fund assets in the 22 largest markets hit a new high of 56.6 trillion dollars by late 2022.
“To combat climate change and support green growth, African countries need more climate investments to achieve their national targets for emissions reductions and adaptation to the impacts of climate change.’’
AfDB, the leading international development finance organisation on the continent, has reportedly begun providing solutions.
“It is implementing mechanisms to facilitate and channel access to global climate finance, particularly from the private sector.
“ It has also inaugurated programs to mitigate risks and barriers to private sector participation in climate finance and green growth in Africa.
“The Bank has committed to mobilise 25 billion dollars by 2025, representing 41 per cent of its total funding commitments,’’ it said.
The statement mentioned the Sustainable Energy Fund for Africa as an example of the Bank’s work, noting that its goals were consistent with those of the AfDB’s High Five strategic priorities.
Particularly mentioned were the initiatives “Light up and Power Africa” and “Improve the Quality of Life for the People of Africa.”
It was mentioned that in order to eliminate market barriers, this institution offered both technical help and concessional funding mechanisms.
“In 2022, for example, Togo benefited by nearly four million dollars, while in January 2023, SEFA provided a one million dollar grant for green mobility in Africa to seven countries.
“The counties are Kenya, Morocco, Nigeria, Rwanda, Senegal, Sierra Leone and South Africa. Still, AfDB believes it can go further,’’ it added.