AfDB creates four green banks

THE African Development Bank (AfDB) is spearheading green investment facilities in financial institutions in Benin, Ivory Coast, Morocco and Egypt to equip local banks with the technical capacity to attract climate finance from international and domestic investors.

The move, through the African Green Bank Initiative, is due to a lack of climate finance made available at each successive Conference of the Parties (COP) meeting on climate crisis held by the UN.

The African Green Bank Initiative is an initiative by the multilateral lender as a workable and realistic solution to the lack of climate finance in the continent.

It was launched at the COP27 in Egypt and aims to roll out large numbers of green banks in Africa over the next few years.

Under the plan, each green bank will raise funds for investing in transformative climate projects, putting Africa in a much better position to fight climate change.

In May, the AfDB announced the launch of the first green banks through a partnership with financial institutions in Ivory Coast, the National Investment Bank and Benin, La Caisse des Dépôts et Consignations du Bénin.

In December, it will partner with financial institutions in Morocco and Egypt to launch green banks in North Africa.

“The fact that African governments and financial institutions have put green banks at the top of the agenda shows that Africa is taking its climate finance needs into its own hands,” Audrey-Cynthia Yamadjako, coordinator at the African Green Bank Initiative, said in a statement on Thursday.

By 2030, the estimated funding needed for African countries to meet their Paris Agreement Nationally Determined Contributions is about US$2,8 trillion.

“We cannot wait any longer to solve the lack of climate finance in Africa,” said Ms Yamadjako. — The East African.

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