AFRICA: AfDB launches $1.6m ‘green bank’ for sustainable growth

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AFRICA: AfDB launches $1.6m 'green bank' for sustainable growth©AfDB

After the recent agreement on climate finance that it signed with the Dutch fund ILX Management, the African Development Bank (AfDB) is launching a new "green bank" that should enable the decarbonisation of several sectors of the economy in Africa.

Smart agriculture, energy efficiency and renewable energy. These are the main areas in which the new “green bank” of the African Development Bank (AfDB) will invest. This financial mechanism focused on “resilient and sustainable growth” was recently launched with a capital of 1.6 million dollars provided by the institution based in Abidjan, Ivory Coast.

According to the AfDB, it will eventually mobilise US$10 million through the support of the African Green Finance Facility Fund (AG3F) whose mission is to assist African states in the implementation of their nationally determined contributions (NDCs). This represents US$2.8 trillion in investments by 2030, according to the conclusions of the 27th United Nations Climate Change Conference (COP27) held in Egypt in November 2022.

Other partners in the new “green bank” include the French investment company Amundi, the Green Bank Network platform based in Belo Horizonte, Brazil, the Climate Investment Fund (CIF) administered by the World Bank, the Climate Action in Africa project funded mainly by Global Affairs Canada. Their contributions will initially support the climate finance component of the National Investment Bank (BNI) of Ivory Coast and the Caisse des dépôts et consignations of Benin.

Read also-AFRICA: Green growth accelerating in 7 countries, says AfDB report

This multilateral support will enable the implementation of energy transition projects developed by small and medium-sized enterprises (SMEs) and local communities. “We will benefit from their technical knowledge, their investment vehicles and their financing capacity to create the first African green finance facilities by offering direct access to climate finance,” explains Audrey-Cynthia Yamadjako, the coordinator of AG3F.

Benoit-Ivan Wansi

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