BY FESTUS OKOROMADU
The African Development Bank has expressed concerns over the current trends in climate finance flow into Africa, warning that the continent faces an annual shortfall in excess of $127.2 billion by 2030, if it continues.
To avert the inherent danger, the Bank said it will provide a platform to galvanize private sector financing domestically and internationally as well as harness natural capital to bridge the climate financing gap and promote the transition to green growth in Africa.
Africa, the AfDB insists, could lose as much as 12 percent of GDP by 2100 while, in comparison, projected losses for the United States and other industrialized countries represent less than 1 percent of GDP.
Speaking on the bank’s plans to improve financing in Africa at a virtual pre-annual meeting news conference, AfDB’s Vice-president, economic governance and knowledge management, Kelvin Urama, said the public sector alone cannot meet the region’s financing needs.
Speaking on the theme, ‘Mobilising Private Sector Financing for Climate and Green Growth in Africa’, Urama said, “This year, the bank will focus on how to leverage the private sector to address the financial gaps for achieving the paramount actions and bring good transitions on the continent.
“To do this, we have structured five different and very interesting knowledge events for the meeting, one of them is the presidential dialogue.
“This will feature our heads of state having a dialogue with the bank’s president on the changing global financial architecture and the role of the multilateral development banks.
“How do we position multilateral development banks (MDBs) and the MDB reforms within the era of trying to mobilise financing more for Africa to reach all the financing gaps we had already highlighted?”
Urama also said there would be an inauguration of the African economic outlook 2023, which would focus on mobilising private sector financing for climate change and green growth in Africa.
“Here, the report will have key areas on looking at the macro-economic performance and outlook on the continent.
“It will also examine youth innovative financing mechanisms to mobilise private sector financing in Africa for climate and green growth.
“Also, we will talk about how to harness micro capital to address the gap on the continent and innovative financing instruments for crowding in private sector investment in Africa.
“The next is on harnessing micro capital to finance climate change and green growth in Africa, and then we have a study on key actions to achieve inclusive growth and sustainable development in Africa,” the bank’s vice-president said.
Also speaking, AfDB’s vice-president, private sector, infrastructure and industrialisation, Quaynor Solomon, called for innovative and creative thinking to address challenges in Africa.
Solomon said the meeting would allow the continent to deliberate on avenues to address all the climate change challenges on the continent.
He noted that it was important for the continent to leverage innovation measures to tackle the issue of climate change in Africa.
