Finance Facility to Tackle Climate Change Effects on Africa's GDP

Published on by Boniventure Mchomvu

ESI Africa
 

It is estimated that climate change is impacting negatively on Africa’s GDP by 2.8% every year (around $100 billion).

In order to tackle climate change challenges in Africa, financing solutions have to be developed not only through external financial flows but also through the development of specific and more appropriate instruments that fosters sustainable development.

As the continent commence the implementation of the African Continental Free Trade Agreement (AfCFTA) early next year, it is timely to unlock new funding arrangements to finance sustainable projects and sectors that build Africa’s long-term competitiveness and resilience. 

To this end, Agence Française de Développement (AFD) and the African Export-Import Bank (AfreximBank) have announced a new facility agreement for a €150 million financing programme. This will support Afreximbank in the implementation of its new climate finance strategy which will target green, low carbon, socially inclusive and more resilient investments across Africa

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