Green finance facilities will be made available to African countries, including Tunisia, as part of the African Development Bank (AfDB)’s ground-breaking African Green Bank initiative, reads a AfDB press release issued Monday.
This initiative was launched in November 2022 to support the implementation of African countries’ Nationally Determined Contributions (NDCs) as thay are still facing significant challenges in financing their climate transition.
“While investment needs resulting from NDCs are estimated at $2.8 trillion by 2030, funds invested on the continent still represent a limited share of global green finance flows, and the share covered by the private sector remains limited,” reads the press release.
The African Green Bank initiative was conceived as part of measures to facilitate access to global finance from the current 3% to 10% annually by 2030. It followed an assessment by the African Development Bank and the Climate Investment Funds in six African countries, namely Tunisia, Benin, Ghana, Mozambique, Uganda, and Zambia.
The assessment revealed that green banks have significant potential for attracting new sources of catalytic funds when supporting low-carbon, climate-resilient development through blending capital and mobilizing local private investment for green investments in Africa.
As such, the Initiative would bolster the capacity of local financial institutions to build a robust pipeline of bankable green projects while de-risking investments and entrenching long-term investor confidence toward climate-resilient and low-carbon projects in Africa.
La Caisse des Dépôts et Consignations du Bénin (CDC Benin) and the Ivorian National Investment Bank (BNI) will benefit first from these facilities, the AfDB said.
Source: Agence Tunis Afrique Presse