African Development Bank (AfDB) Group President, Akinwumi Adesina, has said that Africa will need about $2.7 trillion by 2030 to finance climate change.
Adesina said this at the on-going 2023 AfDB Annual Meetings in Sharm El Sheikh, Egypt on Monday, May 22, 2023.
The theme of the meetings is “Mobilising Private Sector Financing for Climate and Green Growth in Africa”.
According to the bank president, climate change is causing tremendous havoc in many parts of the continent.
He said in the Sahel, hotter temperatures are drying up limited water, causing water stress for crops and livestock and worsening food insecurity.
He explained that in vast areas of Eastern Southern Africa and in the Horn of Africa in particular, there was a combination of drought and floods that are causing massive losses.
Adesina said : “We have loss of people, loss or destruction of infrastructure, and of course, leading to rising numbers of what I call climate induced refugees.
“Africa loses seven to $15 billion a year from climate change that is estimated to rise to 50 billion dollar by 2040 at the current trend.
“But Africa, which accounts for just three per cent of the total cumulative emissions in the world, is now suffering disproportionately the negative consequences of that.
“Just to be clear, Africa is being shortchanged by climate finance. Africa will need $2.7 trillion by 2030 to finance climate change needs as per the nationally determined contributions of Africa.’’
According to him, Africa gets a very paltry $30 billion in climate finance, and clearly, needs major support to be able to adapt to climate change which it did not cause.
On adaptation, Adesina said it would cost about $250 billion and $407 billion by 2030 in terms of the needs of Africa to be able to adapt to climate change.
He reiterated that finance was key to adapting climate change on the continent, adding that a lot more was required to support countries on the continent.
“And that is why at the AfDB, in fulfilling our leadership role, launched together with the Global Center on adaptation, what is called the African adaptation acceleration program.
“The programme is to mobilise $25 billion of support for climate adaptation in Africa.
“We are also putting our money as we are about as a bank today. We devote roughly 67per cent of our climate finance to adaptation.
“We made a commitment to provide 40 per cent of our total financing for climate finance, we have exceeded that today, we had 45 per cent of our total financing, go into climate,’’ he said.
According to the AfDB boss, the bank is the institution with the highest level of diversion of resources to adaptation of any multilateral development bank globally.
He said Africa’s finance for climate for the private sector would have to grow by 36 per cent annually, adding that about $213 billion private sector financing was needed yearly.
“Therefore you can understand that there is so much gap to be filled in terms of private sector financing, and that is why this AfDB annual meetings is focusing on its theme.
“Let me say to you that the opportunities of financing climate and also financing green growth event is in Africa,’’ Adesina said.
While stating some projects achieved by the bank, Adesina restated the need to mobilise private financing for green infrastructure.
“It’s not just infrastructure, quality infrastructure, but green infrastructure. And that’s why we have launched the Alliance for Green Infrastructure in Africa.
“We need to prepare the bankable projects for private sector to invest in and that’s why under the alliance for green infrastructure.
The bank president while stating some of its projects on different countries, urged governments on the continent to manage its natural capital stock, as it determined a country’s wealth.
Adesina highlighted some knowledge events that would be done at the meeting among which is the inauguration of the African economic outlook.
While commending the media, the AfDB scribe called for more of media collaboration in disseminating the right information.
The 58th Annual Meetings of the Board of Governors of the African Development Bank and the 49th Meetings of the Board of Governors of the African Development Fund will end on May 26.
The theme of the 2023 Annual Meetings is “Mobilising Private Sector Financing for Climate and Green Growth in Africa”. It provides a framework for Bank Group Governors to share their experiences with galvanising private financing domestically and internationally and harnessing natural capital to bridge the climate financing gap and promote the transition to green growth in Africa.
Particularly, the theme offers an opportunity for the Governors to discuss Africa’s challenges in attracting private sector financing in low-carbon investments and practical policies that governments can deploy to address these bottlenecks.
The meeting comprises of statutory meetings of its Governors (finance ministers or central bank governors representing the 81 member countries – and knowledge events. Attendees will include representatives of bilateral and multilateral development agencies, leading academics and non-governmental organizations, civil society, and the private sector.
The meetings are the Bank Group’s most important event annually, attracting around 3,000 participants.
By Lucy Ogalue