Africa’s COP27 climate change funding target met by 64% as AFDB announces $2.4 billion mobilized

AfDB President's visit to Egypt: Ambassadors and financial technical partner's Reception

In 2022 during the COP27 summit, the African continent set a target of $1.4 billion for the initiative to build the resilience of vulnerable systems and promote sustainable development in the country.

However, the target now has been surpassed by 64 percent according to the African Development Bank (AfDB).

AFDB has revealed that they have surpassed its mobilization target for The Just Green Transition (JGT) initiative after raising $2.3 billion which will be invested in tackling climate change-related challenges in Egypt.

The Just Green Transition (JGT) initiative has a pipeline of investment-ready projects worth $14.8 billion to tackle the nexus of water, food, and energy, which are critical elements of human well-being, the fight against poverty, and sustainable development.
AFDB was tasked to lead the mobilization of financing for the water pillar projects.

President of AfDB Group Dr. Akinwumi Adesina while speaking in Egypt ahead of the Bank Group’s 2023 Annual Meetings scheduled for 22-26 May, lauded Egypt’s bold efforts to tap into private sector finance to power her green growth programs.

A total of 13 Heads of State and Government are expected to join the bank’s governors, executive directors, development partners, and management at the meetings to discuss mobilizing private sector financing for climate change adaptation and green growth in Africa.

Meanwhile, President of the Arab Republic of Egypt Abdel Fattah El-Sisi lauded AfDB Group for helping the continent deal with the impact of global economic challenges, noting that Egypt is set to enhance cooperation with the lender in various development sectors.

Adesina met with the Governor of South Sinai Governorate, Major General (Rt) Khaled Fouda who said the city of Sharm El Sheikh is ready to host over 2,000 delegates who will be attending the bank’s annual meetings next month.

Adesina said the bank was impressed by the infrastructure and facilities Egypt had established in Sharm El-Sheikh, which successfully hosted last year’s United Nation’s backed talks on climate change, COP 27.

“The infrastructure you have developed in Sharm El-Sheikh is amazing. It’s world-class. The city is constantly changing, putting green growth at the heart of its development. It’s an example of how successful financing of municipalities and other sub-national entities can deliver impactful social economic development,” the bank chief said, adding “Other African countries can learn from Sharm El-Sheikh.”

Dr. Adesina also met with diplomats representing the bank’s shareholders and development partners in Egypt. He said the bank was committed to supporting countries across the continent to achieve accelerated development despite the recent economic shocks and geopolitical tensions affecting them.

“It is a very difficult world to be dealing with, and so as African Development Bank, our role is to support the accelerated development of African countries in financing their economic and social development agenda, and also building the resilience of their economies. We help African countries to be able to deal with the series of shocks—whether it is climate, whether it is debt, whether it is recovering from the Covid-19 situation, or whether it is investing in the things they need for structural transformation of their economies,” he explained.

Dr. Adesina also said, “This will be the first time for an African country to issue a bond in the Chinese capital markets.”

The bank’s Board will in the next couple of months discuss Egypt’s request to provide a partial credit guarantee of $345 million to support the issuance of the bond.

The Green Panda Bond will be the latest among several other bonds that Egypt has issued since 2020 when it launched its Green Financing Framework.

GAROWE ONLINE