Finance

Climate finance in Africa: African Development Bank spearheading innovative mechanisms and instruments

At its Annual Meetings in Sharm El-Sheikh, Egypt, from May 22-26, 2023, the African Development Bank will explore innovative approaches to boost private sector finance for climate action on the continent. At its Annual Meetings in Sharm El-Sheikh, Egypt, from May 22-26, 2023, the African Development Bank will explore innovative approaches to boost private sector finance for climate action on the continent.
Tuesday, 16 May 2023 19:28

Africa contributes the least - less than 3% -- to global warming, yet the continent is the most vulnerable to climate risks. To build resilience against climate change, the countries have outlined tangible ambitions for green growth, including plans to increase climate investment.

Amid dwindling climate finance flows to Africa, the African Development Bank has committed to helping to de-risk and remove business barriers to increase private investors' contribution to climate finance on the continent.

Over the past decade, the Bank has developed expertise and knowledge of financing climate-related projects. For example, the Bank launched its Africa Disaster Risks Financing Programme in 2018 in collaboration with the African Risk Capacity Group (ARC) to promote the deployment of disaster response mechanisms. Its total climate commitments increased to 45% in 2022, up from only 9% in 2016. By this, the Bank has exceeded its target of having 40% of its funding reserved for climate-related projects.

During its upcoming Annual Meetings from 22 to 26 May in Sharm el Sheikh, The Bank will host a session to explore how to mobilize more private sector financing to tackle climate change in Africa, including domestic natural capital. This flagship event will bring together entrepreneurs, pension and private equity fund managers, financiers and government representatives to discuss different instruments and how to deploy them on a large scale on the continent.

The delegates will consider green financing tools such as green bonds, sustainable bonds, social bonds, sustainability loans and debt-nature or debt-climate swaps. Participants will discuss national and international levers to overcome obstacles to implementing such instruments.

With lessons from best practices in Africa and internationally, the African Development Bank hopes to foster the development of innovative financial instruments to support investment in climate and green growth while ensuring a fairer distribution of resources across Africa. 

logo BAD

On the same topic
• The IMF has approved an immediate disbursement of $367 million to Ghana, bringing the total financial support provided to the country since May...
Zenith Bank is in advanced talks to acquire a tier-two bank in Kenya. The Central Bank of Kenya has raised capital requirements, triggering market...
• DPI acquires minority stake in Egypt’s largest private hospital group• Funds to support expansion across Egypt and key Gulf countries• Investment among...
WAEMU states collectively raised nearly 7,000 billion CFA francs in the first half of 2025, a record amount driven by increased financing needs, the...
Most Read
01

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
02

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
03

• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...

Algeria Awards Commercial 5G Licenses
04

• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...

Nigeria Secures $100 mln ECOWAS Bank Loan for Lagos-Calabar Coastal Highway
05

• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...

IFC Plans Investment Fund to Help Grow African Film Industry
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.