African Development Bank (AfDB) is set to begin discussions on private sector financing for climate, green growth in Africa.
The bank made this known when it announced its pre-Annual Meeting news conference in Abidjan on April 20 to herald its 2023 Annual Meeting at Sharm El Sheikh, Egypt.
“The theme of the 2023 Annual Meeting is: “Mobilising Private Sector Financing for Climate and Green Growth in Africa.’
Announcing its meeting, it also said the African continent faces an annual GDP shortfall that could exceed 127.2 billion dollars by 2030.
“In comparison, projected losses for the United States of America and other industrialised countries represent less than 1 per cent of GDP,’’ the AfDB stated.
`The meeting provides a framework for the bank’s group governors to share their experiences, galvanising domestic and international private financing.
“It also provides a framework for harnessing natural capital to bridge the climate financing gap and promote the transition to green growth in Africa,’’ it stated.
The annual meetings of the AfDB group comprises statutory meetings of its governors (finance ministers or Central Bank governors representing the 81 member countries) and knowledge events.
Attendants will include Heads of state, representatives of bilateral and multilateral development agencies, leading academics and non-governmental organisations, civil society, and the private sector.
*IMF calls on financial institutions to increase low interest rate finance for Africa’s climate change measures.
The International Monetary Fund (IMF) has called on development banks and multilateral institutions to increase low interest rate finance for Africa’s climate change measures.
Providing concessional finance to sub-Saharan Africa (SSA), the fund said would help meet the climate financing needs and help accelerate green energy transition in the region.
As of 2020, SSA had received $15.7bn in concessional climate finance, but needs $190bn for mitigation by 2030 and $50bn per year in adaptation cost by 2050.
Speaking to the figures and current economic trends, Abebe Aemro Selassie, Director of the IMF’s African Department, said it had become urgent for development banks and multilateral institutions to shore up financing.
He was speaking at a press conference on the Sub-Saharan Africa Regional Economic Outlook – The Big Funding Squeeze, on Friday on the side-lines of the IMF/World Bank Group (WBG) 2023 Spring Meetings.
“Ensuring that important efforts to tackle climate change do not crowd out basic needs, like health and education. Climate finance provided by the international community must come on top of current aid flows,” Mr Selassie said.
He added that closing the gap required that the global community considers the critical need for concessional finance in helping the region address climate change and explores ways in which additional flows might be unlocked.
The report noted that local public resources were limited, due to practical limits on domestic revenue mobilisation, elevated debt levels, tighter global financial conditions, and rising borrowing costs.
It, therefore, called on the international community to scale up climate finance for the region, and take steps to ensure that committed funds were used swiftly and effectively.