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Canada, AfDB sign $104.8m climate fund agreement

Canadian Government and the African Development Bank (AfDB) have signed a $104.8 million agreement to formalise the Canada-African Development Bank Climate Fund (CACF).

Akinwunmi Adesina
AfDB president, Akinwunmi Adesina

According to a statement from the AfDB on Tuesday, March 23, 2021, the fund is aimed at providing concessional loans to climate change-related projects with a strong gender-responsive component.

The fund would be capitalised through a combination of 122.9 million Canadian dollars ($104.8 million) repayable contribution plus 10 million Canadian dollars grant contribution.

The fund is also aimed at providing concessional loans for both sovereign and non-sovereign operations and also for complementary technical assistance.

The AfDB would administer the fund.

Speaking at a virtual signing ceremony, Canada’s Minister of International Development, Mr Karina Gould, said the investment recognised “the critical role that women need to play in climate action.

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“And supports their efforts to mitigate and adapt to the effects of climate change”.

The ceremony was held on March 17 on the sidelines of the Canada-Africa Clean Growth Symposium.

“Climate change is one of the most important challenges of our time.

“And, although we are all affected by it, we in Canada know that not everyone is affected equally, that means that vulnerable and marginalised people are bearing the brunt of this crisis.”

In his remarks, President of the AfDB, Dr Akinwumi Adesina, said: “In building back Africa, climate resilience is very important.

“This is why I’m delighted and thrilled with the Canada-African Development Bank Climate Fund that we are launching today.”

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Adesina thanked Canada for its “tremendous” support to the bank in terms of general capital increases, temporary callable capital, and the support that Canada has given to Africa through the bank.

“These resources that you are making available, it’s very unique, in helping us with adaptation.

“First, it is long-term financing. It will provide long-term capital to the private sector and to the public sector. It also provides it at affordable levels for countries.

“What I like most about it is that it looks at multi-sectoral use of this financing, all these things are very important to support Africa in climate adaptation and mitigation.”

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“Canada has always been there for Africa, Canada is a great friend of Africa,” he said.

According to the statement, CACF resources will be deployed in innovative low-carbon technologies, renewable energy, climate-smart agriculture, sustainable forestry, water management, and climate-resilience projects.

The fund would also finance climate change related projects in the AfDB’s regional member countries, including those that demonstrate strong gender equality focus.

The empowerment of women and girls would be an objective across all concessional financing of the CACF, this aims at direct, measurable gender equality outcomes.

By Temitope Ponle

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