SOUTHERN AFRICA: Green Climate Fund provides $56 million to support eco-finance

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SOUTHERN AFRICA: Green Climate Fund provides $56 million to support eco-finance© wk1003mike/ Shutterstock

Following an agreement signed between the Green Climate Fund (GCF) and the Development Bank of Southern Africa (DBSA), $56 million will be made available to southern African countries to finance their projects in the environmental sector. The purpose of the action is to reduce the effects of climate change in some countries in the sub-region.

A few results of cooperation between the Development Bank of Southern Africa (DBSA) and the Green Climate Fund (GCF) were achieved at the end of August 2019. The GCF has decided to release $56 million to accelerate climate investments and the removal of market barriers in southern Africa. Under the terms of the agreement signed between the two partners, the funds made available to Southern African countries will be used to finance climate projects in some countries in the sub-region. These include South Africa, Lesotho, Namibia and Eswatini.

For DBSA’s Executive Director Patrick Dlamini, climate change is a threat that must be reduced by all means. He pointed out that “climate change is one of the most serious and growing threats to Africa’s economies, natural resources, lifestyles and social stability. The signing of this agreement is an important step in our efforts to address climate change and contribute to development that is resilient to global warming in the southern African region.”

Southern Africa has become vulnerable as a result of climate change. It is constantly plagued by extreme drought and fluctuations in rainfall. In addition, this area of the African continent is still suffering from the aftermath of Cyclones Idai and Kenneth, which have wreaked havoc there, causing 1,000 deaths and numerous material damages. The lack of investment in climate projects was pointed out at the time. Through this financing, the bank aims to reduce the States’ dependence on fossil fuels. An exercise that is both laborious and costly. In South Africa alone, $349 billion would be required to meet the country’s National Climate Contribution (NCCP) targets by 2050.

Luchelle Feukeng

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