Tunisia has access to 48.3% of the needed annual climate financing. Compared to other North African countries, it has along with Egypt (35.8% of funding) relatively more significant financing flows, it emerges from the North Africa Economic Outlook 2023 released by the African Development Bank.

“There are considerable disparities between the region’s countries: Tunisia with 48.3% of the needed annual funding and Mauritania with 2.2% of its needs to meet its Nationally Determined Contributions, or NDCs, ” the report which addresses the theme of Mobilising Private Sector Financing for Climate and Green Growth highlighted.

A gap is likewise seen between absolute needs of these countries and actual financing flows.

Except for Libya, the public sector and bilateral donors are the main sources of climate financing in North Africa, that is about 80% of total flows, the report highlighted.

North African countries contributed to the tune of 18%, while the remaining 2% were generated by the private sector.

Priority sectors for climate finance mainly include renewables, transport, agriculture and water management.

Financing flows in each country vary by sector; Tunisia and Morocco gave priority to investments in renewable energies and energy efficiency while Algeria and Mauritania focused on sustainable agriculture, the bank said.

Funding needs for climate action and green growth in Africa are important covering a wide array of fields and areas of activity.

Climate mitigation needs mainly cover transport, energy and industry, while those of adaptation are focused on agriculture, water, infrastructure and building, disaster preparedness and health.

North Africa needs $280 billion between 2020 and 2030 to support its transition towards a low-carbon and climate resilient economy.

North African countries where investments earmarked to electricity are the highest are Egypt ($36 billion), Algeria ($23 billion and Morocco ($12 billion).

In Tunisia and Libye, committed funds are $3 billion and $0.3 billion, respectively. Meanwhile, government funding is not enough, thus the bank’s call for involving the private sector.

About $842 million in private climate investments were reported in North Africa, including 41% ($345 million) in Morocco, 39% ($332 million) in Egypt and 12% ($104 million) in Tunisia.

Source: Agence Tunis Afrique Presse