Financial institutions in Côte d’Ivoire and Benin will be the first African public institutions to benefit from the first green loans from the African Green Bank, an initiative of the African Development Bank (AFDB).
The National Investment Bank of the Ivory Coast (BNI) and the Benin Deposit and Loan Bank (CDC Benin) are the selected banks.
Last November, the African Development Bank launched the African Green Bank initiative to support the implementation of Nationally Determined Levies for African countries that still face significant challenges in financing their climate transition.
While investment needs stemming from Nationally Determined Grants are estimated at $2.8 trillion by 2030, funds invested on the continent represent only a small fraction of global green finance flows, and the share covered by the private sector remains small .
The African Green Bank initiative was designed as part of measures to ease access to global finance, which would increase from the current 3% to 10% annually by 2030.
The initiative was launched following an assessment conducted by the African Development Bank and the Climate Investment Funds in six African countries: Benin, Ghana, Mozambique, Tunisia, Uganda and Zambia.
The assessment found that green banks have significant potential to attract new sources of catalytic funds when they support low-carbon and climate-resilient development through mobilizing capital and local private sector investment for green investments in Africa.
“The African Green Bank initiative is a powerful tool to reduce funding costs and mobilize private sector investment in climate action in Africa,” said Kevin Kariuki, Afdb Vice Chair for Climate Action. climate.
According to Solomon Quaynor, vice president of the African Development Bank in charge of the private sector, infrastructure and industrialization, “this technical assistance will strengthen the climate governance of local financial institutions, the origin and monitoring of green projects, essential for attracting private capital strengthening investor confidence in the long term”.
The coordinator of the initiative, Audrey-Cynthia Yamadjako, said that about 1.6 million dollars have already been mobilized for the construction of the first two structures. She added that green finance facilities, whether newly created or housed in existing financial institutions, are “the solution to mobilizing large-scale private finance for climate action.” [Da Redazione InfoAfrica]
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