Standard Chartered Bank has today held a forum on Climate Finance with stakeholders from across Africa. The forum was held on the sidelines of the Africa Development Bank (AfDB) annual meeting being held in Nairobi.
To achieve a just energy transition and meet emissions targets outlined in international agreements like the Paris climate accord, Africa requires significant financial resources estimated at $2.8 trillion by 2030. However, the continent faces substantial fiscal constraints, with public debt continuing to rise.
The solution lies in mobilising investors to provide financing and technology transfers geared towards capacity building and local industry development. This entails implementing critical reforms to ensure Africa’s funding needs are met while also addressing systemic barriers to investment and development.
Key reforms include offering concessional finance to emerging markets and developing economies, implementing credit-enhancement schemes to attract private-sector participation, providing debt relief to low- and middle-income countries, and establishing multi-partner funds to mitigate investment risks.
Furthermore, redirecting resources towards existing projects and programs aimed at climate resilience and adaptation can accelerate progress. Initiatives like the Marrakech Declaration and the establishment of funds such as the Loss and Damage Fund demonstrate promising steps towards enhancing climate finance in Africa.
Against this backdrop, Standard Chartered and Invest Africa held a strategic breakfast round table on the side-lines of this year’s AfDB Annual meetings, to find practical solutions to close Africa’s climate finance gap.
Standard Chartered managing director for Kenya and Africa Kariuki Ngari said the banking group’s research indicates that early action towards climate adaptation results in substantial gains for investors and that for every one dollar spent on adaptation this decade, an economic benefit of 12 dollars can be generated.
He said a concerted effort involving governments, multilateral institutions, and the private sector is crucial to unlocking the full potential of climate action on the continent.
“Globally, Standard Chartered aims to catalyse finance and partnerships to scale impact, capital and climate solutions to where they are needed most, including mobilising green and transition finance for Africa,” he said.
