The African Export-Import Bank (Afreximbank) has announced the launch of a $300 million concessional financing program aimed at supporting climate transactions across Africa. This initiative was unveiled by Prof Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, during the opening of the Climate Action Africa Forum (CAAF24) in Lagos.
Addressing Climate Change Issues in Africa
Amidst growing concerns about the impacts of climate change on African countries, Prof Oramah emphasized the urgent need to address these issues. Despite Africa contributing only 3.7% to global greenhouse gas emissions, the continent faces disproportionate adverse effects from climate change, including prolonged droughts, sea level rise, coastal flooding, erosion, and reduced food production.
The new financing program is designed to support climate finance transactions and other related opportunities. The governance framework for the program has been approved, and the operational structure is being finalized. Helen Brume, Afreximbank’s Director of Project and Asset-Based Finance, represented Oramah at the event.
Additional Funding for SMEs
In addition to Afreximbank’s initiative, the Executive Director of Climate Action Africa (CAA), Grace Oluchi Mbah, announced a $20 million Pan African Climate Action Fund. This fund is intended to empower small businesses and startups in sectors such as energy, agriculture, circularity, and transportation. The CAA is committed to building a sustainable, green, and prosperous future for Africa, aligning with their broader mission to address environmental degradation and enhance ecological resilience.
Mbah also introduced the “Billion Trees for Africa Initiative,” a community program aimed at promoting tree planting across the continent. This ambitious project seeks to mitigate environmental degradation and bolster the ecological and economic resilience of African communities.
Government Support and Collaboration
The Climate Action Africa Forum 2024, themed “Green Economies, Brighter Future,” brought together stakeholders from across the climate change ecosystem in Africa. Representing the federal government of Nigeria, Rukia El-Rufai, Special Adviser to President Bola Tinubu on Climate Change, highlighted the government’s efforts to mitigate the impacts of climate change on the country.
The launch of the $300 million concessional financing program by Afreximbank, alongside the $20 million Pan African Climate Action Fund and the Billion Trees for Africa Initiative, marks significant steps towards addressing the climate challenges facing Africa. These initiatives aim to support sustainable development, enhance resilience, and promote a greener future for the continent. The collaboration between various stakeholders, including governments, financial institutions, and community organizations, is crucial in tackling the multifaceted impacts of climate change in Africa.
