How banks are supporting Africa’s climate change agenda
The African Development Bank says Africa needs about 1.6 trillion dollars to combat climate change between 2020 and 2030. How are banks providing support to achieve this agenda? Michael Larbie, the CEO and Regional Head for West Africa at Rand Merchant Bank joins CNBC Africa for more.
Wed, 25 May 2022 12:02:32 GMT
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AI Generated Summary
- Africa requires $1.6 trillion to combat climate change between 2020 and 2030, highlighting the critical need for financial support and sustainable development initiatives in the region.
- Rand Merchant Bank plays a key role as a financier and advisor in supporting climate resilience efforts by engaging with global investors, funding renewable energy projects, and promoting environmentally friendly gas initiatives across Africa.
- The bank's strategic focus in West Africa centers on infrastructure development, particularly in power, roads, and bridges, with a collaborative approach that involves partnering with governments and the private sector to drive sustainable projects.
As the world grapples with the challenges of climate change, Africa is on the front lines of this battle, facing the impacts of excessive rainfall and other climate-related disasters. In a recent interview with CNBC Africa, Michael Larbie, the CEO and Regional Head for West Africa at Rand Merchant Bank, discussed the role of banks in supporting Africa's climate change agenda. Larbie emphasized the need for a collaborative approach to achieve climate resilience and sustainability in the region.
Highlighting the significance of the ongoing global discussions around climate resilience and just transitions, Larbie underscored the impact of climate change on Africa and the importance of adopting strategies and frameworks aligned with global standards. He positioned Rand Merchant Bank as a key player in supporting climate resilience efforts, serving as a financier and advisor to governments and clients in navigating the complex landscape of sustainable development.
With Africa requiring an estimated $1.6 trillion between 2020 and 2030 to combat climate change, Larbie discussed the critical role of financial institutions in mobilizing capital for sustainable projects. He noted that Rand Merchant Bank has been engaging with global investors interested in climate projects and facilitating funding for renewable energy initiatives, as well as environmentally friendly gas projects that promote sustainable development across the region.
In West Africa, Larbie emphasized the bank's strategic focus on infrastructure, particularly in key sectors like power, roads, and bridges. He highlighted the importance of addressing food security and transportation logistics to ensure the efficient distribution of goods and mitigate the impact of inflation in the region. Larbie also emphasized the bank's collaborative approach, partnering with governments and the private sector to drive infrastructure projects and sustainable development initiatives.
When discussing challenges and opportunities in attracting investment for climate-friendly projects in Africa, Larbie emphasized the importance of moving swiftly and effectively in implementing policy frameworks and identifying viable projects. He highlighted the need for long-term financing solutions, including investments with durations of 30 to 50 years or even longer, to support the sustainability of infrastructure projects and alleviate the burden on government budgets.
In conclusion, Larbie reiterated the importance of aligning financial resources with sustainable development goals and emphasized the role of banks in driving climate resilience and inclusive growth in Africa. With a proactive approach and a focus on long-term investment solutions, financial institutions can play a crucial role in supporting Africa's climate change agenda and driving positive change across the continent.