AfDB Urges Greater Private Sector Role in Climate Finance at Kampala Conference

The conference, organized by the Coalition of Finance Ministers for Climate Action (CFMCA), addressed the significant climate financing gap faced by Africa.

At the "Sustainable Horizons: Climate Action Strategies for Ministries of Finance in Sub-Saharan Africa" conference held in Kampala, Prof. Anthony Nyong, Director for Climate Change and Green Growth at the African Development Bank, highlighted the pressing need for increased private sector involvement in climate finance. The conference, organized by the Coalition of Finance Ministers for Climate Action (CFMCA), addressed the significant climate financing gap faced by Africa.

Prof. Nyong revealed that the private sector contributed less than 3% of adaptation finance in Africa between 2019 and 2022. He called for an annual mobilization of $213.4 billion from private sources to bridge the climate financing gap by 2030. Key barriers to private sector engagement include perceived high investment risks and poor credit ratings.

The conference featured a panel discussion on "Unique Opportunities and Challenges for African Ministers of Finance," moderated by Uganda’s Minister of State for Planning, Amos Lugoloobi. Panelists included Mr. Bock Kalokh, Minister of Finance for Sierra Leone, and Mr. Joseph Ng'ang'a, CEO of the Africa Climate Summit and interim CEO at the Global Energy Alliance for People and Planet.

Minister Kalokh emphasized the urgent need for increased financial resources to support climate mitigation and adaptation efforts. He underscored that a quarter of greenhouse gas emissions come from agriculture, stressing the importance of immediate action. "Do we need further evidence before action? Do we wait to be on life support before we act? It is time to act, and we need to act now," Kalokh urged.

Mr. Ng'ang'a highlighted Africa’s potential to be a source of climate solutions rather than merely a victim. He pointed out that with better access to global financing, Africa could drive economic development, create jobs, and mitigate climate impacts. "We have resources; if we accessed global financing, we could deliver solutions on climate," he stated.

In response to the challenges discussed, Prof. Nyong introduced the African Financial Alliance on Climate Change (AFAC), an initiative aimed at accelerating capital allocation for climate resilience in Africa.

The conference concluded with a unified call for immediate and strategic action to address climate change in Sub-Saharan Africa. The event, supported by Enabel, NDC Partnership, UNEP, UNDP, Coalition for Capacity on Climate Action (C3A), and the World Bank, reinforced the need for ministries of finance to prioritize and fund climate resilience initiatives, with the African Development Bank positioned as a key facilitator in mobilizing resources and engaging the private sector.