Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

AfDB: Africa Requires $2.7 trillion by 2030 to Finance Climate Change Needs

Tue 23 May 2023 | 10:52 PM
Taarek Refaat

Estimates of the African Development Bank (AfDB) revealed that Africa needs $2.7 trillion by 2030 to finance its needs related to combating climate change.

Akinwumi Adesina, AfDB President said that if Africa had these funds, the African Sahel would be provided with electricity, and the situation of Chad, Niger, Nigeria, Niger and Cameroon would change because livelihoods were provided to millions of people there, and every African country would be insured against catastrophic weather conditions.

He added, at the bank’s annual meetings, that his institution leads climate adaptation efforts across the continent, pointing out, in data published on the bank’s website, that the bank group allocates 63% of its financing to climate projects, which is the highest financing among all multilateral development banks.

He called on developed countries to fulfill their pledges to provide financing worth $100 billion annually for climate projects in developing countries.

On Sunday, the Board of Directors of the African Development Bank Group approved a $345 million partial credit guarantee - in RMB equivalent - for Egypt to increase access to the panda bond market to finance green and social projects.

A press release issued by the bank, which was published on its website, said that the partial credit guarantee of the bank group will allow Egypt to raise the equivalent of $500 million in the panda bond market, which are bonds denominated in Chinese yuan and issued by foreign borrowers.

It is noteworthy that Egypt has been active in sustainable and green bond markets since 2020, when it issued the first green bonds in the MENA region.