Dr Akinwumi Adesina, president of the African Development Bank (AfDB), says Africa loses between seven billion dollars and 15 billion dollars annually due to climate change.
Adesina who made this known in an interview with the British Broadcasting Corporation (BBC), said that Africa was at the forefront of climate change’s impacts, which had devastating effects on agriculture and economies, despite contributing only three per cent of global emissions.
He explained that the AfDBank has inaugurated ambitious initiatives to build resilience and adapt to a changing climate in response to the menace.
“The AfDB has committed to doubling its climate finance to 25 billion dollars by 2030, focusing on the African Adaptation Acceleration Programme,”.“This programme aims to deploy 25 billion dollars for climate adaptation, making it the largest globally,”.
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Speaking further, he said that the AfDB has created a climate action window with an initial investment of 429 million dollars, expected to grow to 13 billion dollars. Adesina said that this window supports vulnerable countries with crop insurance, land restoration, and climate information services.
He noted that Innovative financial mechanisms played a crucial role in supporting these climate adaptation initiatives, adding that the bank had begun using partial credit guarantees, which enabled countries like Benin, Senegal, and Cote d’Ivoire to raise significant capital at lower interest rates.
“For example, Benin raised 400 million dollars from Chinese investors using a 195 million dollar partial credit guarantee,”he said. “The AfDB also facilitated Egypt’s Panda Bond issuance, allowing the country to secure 500 million dollars from Chinese markets.
Speaking further, he said “These financial innovations reduce the cost of borrowing for African countries and encourage long-term investments in climate resilience,”. “In spite of the challenges posed by climate change, Africa is leading the charge in innovative solutions and sustainable development,’’.
Story was adapted from Vanguard
