.Afreximbank launches $300 million to support climate finance

Former Minister of Handicrafts, Tourism and Culture in Mali, Ramatoulaye Ndiaye, has warned that Africa faces existential challenges, including extreme weather, erratic rainfall, land degradation, desertification, water scarcity, sea-level rise and biodiversity loss, which endanger ecosystems, livelihoods and socio-economic stability.

Meanwhile, the President and Chairman of the Board of Directors, African Export-Import Bank (Afreximbank), Prof Benedict Oramah, said though Africa contributes little to global emissions with 3.7 per cent of Greenhouse Gas (GHG) emissions, there is a universal consensus that climate change adversely impacts the continent disproportionately.

Ndiaye said this yesterday in her keynote at the Climate Action Africa Forum 2024 (CAAF24) in Lagos with the theme, ‘Green Economies, Brighter Futures; Innovating and Investing in Climate-Smart’.

Diallo said that the impacts of the challenges are already hampering Africa integration and development and that proactive and collective continental efforts are crucial to address them.

“As a global community leading the change, we must utilize the collective wisdom and ingenuity of diverse stakeholders to accelerate meaningful change.

“We are reminded of the urgency with which we must address Africa’s climate challenges.
Despite the growing recognition of climate change as one of the most critical global issues in the 21st century, the realities of climate change are becoming more and more evident as global weather patterns are increasingly geared toward the extreme.

“As I always say, the development of Africa leads to the development of the entire planet. Our world stands at a critical juncture in history, where bold and decisive action is essential. We must be proactive in the battle to protect Africa’s natural environment.

“Considering its vast potential and wealth of natural resources, Africa has an opportunity to play a leading role in ensuring a sustainable and resilient future. However, this journey requires collaboration, innovation, and unwavering commitment from all stakeholders.

“In light of this, a significant part of my career has been devoted to prioritizing sustainable approaches and combining traditional knowledge with climate-smart initiatives, and I have witnessed the positive impact of the transformative power of visionary leadership and inclusive policymaking. “While we have faced challenges along the way, we have been immensely rewarded as we have helped shape global climate policies and promoted sustainable development. At the Great Green Wall of Africa (GGWoA), we always seek harmonised and coordinated approach for multi-scale action and enhance coordination.

“On May 9, 2024, the Great Green Wall of Africa and the African Union launched the New African Union Great Green Wall Initiative Strategy and a 10 years implementation framework in Nairobi, Kenya, during the Africa Fertilizer and Soil health Head of States summit. This initiative is another representation of our commitment to sustainability and progress in the environment across the continent. Despite this effort and many more across the continent, the work is far from being over.
In the face of climate adversity such as what we are faced with, it is imperative that we collectively work toward sustainable solutions, environmental resilience, and economic transformation. This global climate crisis has no borders and poses a significant threat to human security.

She added: “As we strive to move towards a low-carbon, climate-resilient future, we must leverage innovative technologies, encourage more effective and meaningful public-private partnerships, share knowledge both technical and theoretical, build capacity, and mobilize finance to execute the adaptation, mitigation and avoidance measures.

“In the face of adversity, there are always opportunities for improvement, so therefore, we must turn these opportunities into projects that can attract investments to accelerate the process of materialization of the positive impact we all want to see.
“Let us prioritize the needs of those most vulnerable to climate change particularly children and women, and a strong consideration for youth integration to drive significant environmental and economic impacts across Africa.
Our collective efforts must be robust and reach high just as the baobab tree stands strong, branching upwards. I strongly believe that together, we can shape a brighter, more sustainable future for Africa and the world.

Represented by the Director of project and Asset-Based Finance of Afreximbank, Helen Brume, the board chairman said: “Africa is already experiencing widespread damage attributable to climate change, including prolonged droughts, sea level rise, coastal flooding and erosion, salinity in low-lying cities, loss of biodiversity, heavy rains, and reduced food production.”

On interventions, he said: “Afreximbank is actively contributing to the continent’s drive towards climate action and green growth initiatives through various projects and collaborations. It is launching a $300 million Concessional Finance programme.
Special Adviser to Lagos State Governor on Climate Change and Circular Economy, Titi Oshodi, said:
“The theme ‘Green Economies, Brighter Future’ encapsulates the essence of our mission to transform our economies into engines of sustainability and prosperity for all.
“The choices we make today will shape the world we leave for future generations, and we must act decisively and collaboratively.”

Speaking on the initiative, Executive Director, Climate Action Africa (CAA) Grace Oluchi Mbah, said: Africa is warming nearly faster than any other region, with 130 million people at risk from rising sea levels. Yet, for me, the most personal impact of climate change is on smallholder farmers like my mother who make up 60% of our population and produce 90% of our food. Their lives and livelihoods are on the frontlines of this existential threat.
How we react to the challenges we encounter is up to us, the stories we choose to write of ourselves are up to us.

“We at Climate Action Africa live on the premise that a small group of thoughtful, committed individuals can change the world. As Margaret Meed put it, “In fact, it’s the only thing that ever has.” So, we choose to push ourselves continually, to innovate, and invest in the future we want for Africa. A future that is sustainable, green, prosperous and harmonious with nature. That is the story of Africa we choose to write.

“It is this drive that motivates us to boldly announce today the launch of our Billion Trees for Africa Initiative under our community programs. This ambitious project aims to address environmental degradation and enhance the ecological and economic resilience of African communities.

“As we celebrate the vibrant innovations happening across our continent. Following the registration of over 800 innovators for the CAAF24 deal room, and the selection of outstanding projects for today’s pitch, we reaffirm our commitment to nurturing innovators and climate solutions through our new Pan-African Green Economy Program (PAGE). Created in partnership with IDEA AFRICA and the Founder Institute, PAGE aims to support 5,000 innovators across the continent by 2035.

“Recognising the critical role of investment in climate action, we are proud to support the Pan African Climate Action Fund. A $20 million initial investment fund, co-created by dedicated Africans, which seeks to empower small growing businesses and startups in the energy, agriculture, circularity and transportation sectors.“