Africa Needs Bankable Projects to Access Climate Change Finance, Say Experts at CAAF24 

Vanessa Obioha 

The importance of having bankable and well-defined projects to secure financing for combating climate change on the continent was a key theme at the two-day Climate Action Africa Forum 24 (CAAF24), organised by Climate Action Africa (CAA) in Lagos.

Africa currently requires $2.8 trillion between 2020 and 2030 to implement its NDCs under the Paris Agreement. This is the cost of the continent’s contribution to limiting warming to 1.5°C and addressing the biggest impacts of climate change.

While outlining Nigeria’s preparedness to reach net zero and how each strategy aligns with national development goals, the Special Adviser to the President on National Economic Council on Climate Change, Rukia El-Rufai, stressed the importance of developing bankable projects.

 “It’s good that we’re talking finance, it’s available, but what we’ve seen is that the biggest barrier to accessing that finance is preparing the projects for bankability,” she said while noting that it is not an easy task because it requires one to do the groundwork. She applauded Lagos for being the first subnational to issue a green bond.

Corroborating the need for innovative and bankable projects was the special guest, the former minister of Culture in Mali,  Ramatoulaye Diallo N’diaye. 
“We need projects, we need dedication. We need to be together and hold hands and make sure that we have bankable projects,” she said during her keynote speech. “There are always opportunities for improvement. So therefore, it is important that we turn these opportunities into projects that can attract investments to accelerate the process of materialisation of the positive impact we all want to see.”

N’diaye who is the founder and CEO of the Great Green Wall of Africa (GGWoA) Foundation further highlighted the urgency for the continent to take proactive and collective actions to protect Africa’s natural environment considering “its vast potential and wealth of natural resources, Africa has an opportunity to play a leading role in ensuring a sustainable and resilient future.” As one who has dedicated a significant part of her career to prioritising sustainable approaches and combining traditional knowledge with climate-smart initiatives, N’diaye revealed that the GGWoA and the African Union last May launched the Great Green Wall Initiative strategy and a 10-year implementation framework in Nairobi, Kenya. 

“This initiative is another representation of our commitment to sustainability and progress in the environment across the continent.”

Speaking on the urgent need for adaptation finance to help African countries build resilience to climate shocks,  World Bank’s External and Corporate Relations (ECR) Manager for East and Southern Africa, Edith Jibunoh highlighted the bank’s commitment to divert 45 per cent of annual financing to climate by 2025 during a breakout session. 

“Africa receives only 20 per cent of global adaptation finance flows, amounting to $13 billion annually in 2021 to 2022, despite being one of the most affected regions by climate change,” she said. 

“We are integrating climate finance into all of the work we do. We have set an ambitious goal to divert 45 per cent of our annual financing to climate by 2025, pushing our ambition into overdrive and putting more than 40 billion to work every year,” she continued, adding that the World Bank is the largest multilateral financier of climate action in developing countries.

She also discussed Nigeria’s efforts to expand electricity access through off-grid solar options and mini-grids, with a focus on the World Bank’s $350 million Nigeria electrification project.

Themed ‘Green Economies, Brighter Futures,’ CAAF24 was a platform for experts and innovators, and policymakers to engage in meaningful discussions, share best practices, showcase innovative technologies, forge partnerships that will drive Africa’s transition to climate-smart development. 
“With the event, we aim to increase education and awareness on climate change, showcase innovations and projects driving Africa to a sustainable future, and more actively contribute to the expansion of Africa’s green economy,” the Co-Founder and Executive Director of CAA, Grace Mbah said during her opening speech.

Other highlights at CAAF24 include the launch of the Billion Trees for Africa Initiative as part of CAA’s community programs and the unveiling of the Pan-African Green Economy Program (PAGE), a partnership with IDEA AFRICA and the Founder Institute that seeks to grow a new generation of 5,000 green innovators across Africa by 2035.