By Faridat Salifu
The African Development Bank has called for increased private sector engagement in climate finance during a critical summit of African finance ministers held in Kampala.
The “Sustainable Horizons: Climate Action Strategies for Ministries of Finance in Sub-Saharan Africa”conference, organized by the Coalition of Finance Ministers for Climate Action (CFMCA), brought together key stakeholders to address the continent’s climate financing challenges.
Prof. Anthony Nyong, Director for Climate Change and Green Growth Department at the African Development Bank, emphasized the significant shortfall in private sector funding for adaptation activities in Africa. “From 2019 to 2022, the private sector financed less than 3 percent of adaptation activities.
To close Africa’s climate financing gap by 2030, we need to mobilize $213.4 billion annually from the private sector,”Nyong stated.
He identified perceived high investment risks and poor credit ratings as major obstacles.
The conference featured a panel discussion on the unique opportunities and challenges for African finance ministers, moderated by Ugandas Minister of State Planning, Amos Lugoloobi.
Panelists included Sierra Leone’s Finance Minister Bock Kalokh and Joseph Ng’ang’a, CEO of the Africa Climate Summit and interim CEO at the Global Energy Alliance for People and Planet.
Minister Kalokh highlighted the urgent need for increased financial resources to implement mitigation and adaptation strategies by 2030.
He stressed the importance of strategic investments for resilient economies, noting that agriculture, responsible for a quarter of greenhouse gas emissions, requires immediate attention. “We cannot wait for further evidence or a crisis before we act.
The time to act is now,”Kalokh urged, calling on finance ministries to prioritize climate action and disaster mitigation.
Joseph Ng’ang’a emphasized Africa’s potential to play a pivotal role in the global climate narrative, positioning the continent as a provider of solutions rather than merely a victim of climate change.
“With access to global financing, Africa can deliver impactful climate solutions,”he stated, urging the audience to view climate action as an opportunity for economic development and job creation.
In response to the identified challenges, Prof. Nyong highlighted the African Development Bank’s initiative, the African Financial Alliance on Climate Change (AFAC), which aims to accelerate capital allocation for Africa’s climate resilience.
He underscored the importance of mobilizing private sector funds to meet the continent’s climate goals.
The summit concluded with a strong call to action for finance ministries to prioritize and fund climate resilience initiatives.
The African Development Bank positioned itself as a key facilitator in mobilizing the necessary resources and engaging the private sector. The event was supported by Enabel, NDC Partnership, UNEP, UNDP, the Coalition for Capacity on Climate Action (C3A), and the World Bank.