Ghana’s Minister for Finance and Chairperson of the African Development Bank (AfDB) Board of Governors has disclosed that Africa needs about 3 trillion dollars to address its climate change vulnerability challenges.
Mr. Ken Ofori-Atta made the disclosure at the opening of the board’s 2022 annual meeting in Accra on Tuesday.
According to Ofori-Atta, Africa needs the projected amount to finance its Nationally Determined Contributions (NDCs).
This is to enable the continent and its population cope with the adverse effects of climate change.
“Africa at this point needs close to three trillion dollars in resources to finance the implementation of our nationally determined contributions.
This is to enable us to mitigate the various climate vulnerabilities that the continent is confronted with”, Mr. Ofori-Atta observed.
The one- week meeting is under the theme: “Achieving Climate Resilience and a Just Energy Transition for Africa”.
The event’s discussions will include continental energy transition plan, challenges and way forward.
The Ghanaian finance minister pointed out that Africa contributes less than four percent of the global carbon emissions.
He regrets that despite contributing less, Africa countries are much affected by the impact of climate change.
The AfDB Board of Governors Chairperson urged development institutions across the Africa to guide the continent’s climate and energy transitions.
He called on policy makers to focus on development plans and programs that is directed at net- zero targets realization.
Touching on financing challenges, Mr. Ofori-Atta revealed that only 21 African countries have access to external capital markets.
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He observed that these countries end up paying higher interest rates than their peers with equal or worse economic backgrounds.
Mr. Ofori-Atta further said it has become necessary for African leaders to adopt innovative means of mobilizing resources.
He added that the current internal and global dynamics present opportunities for digital space resource mobilization.
He noted that the continent attracted less than one percent of the estimated $600 billion global bond despite Africa’s vast green investment opportunities.
According to the me minister, the continent’s infrastructure financing gap keeps widening to the tune of $130 billion- $170 billion between now and 2025.
The AfDB Board of Governors Chairperson stressed the need for the bank to position itself to draw in the needed resources for climate action.
Mr. Ken Ofori-Atta on this note appealed to management of the AfDB to remain committed to supporting its members to close the continent’s energy and climate change infrastructure gap.
