AfDB Annual Meetings: Unlocking private sector climate finance

In the wake of the African Development Bank 2023 Annual Meetings, there has been a clarion call for the private sector to unlock its vast resources to advance Africa's need for climate financing. Despite contributing the least to carbon emissions globally, Africa only receives a mere three percent of available capital for climate financing. This discrepancy highlights the urgent need for increased private sector involvement in driving sustainable development across the continent. CNBC Africa's David Alabi recently sat down with Michael Mensah-Baah, the Deputy Chief Executive Officer at Development Bank Ghana, to discuss the imperative of mobilizing private finance for climate-friendly initiatives in Africa. The insightful conversation shed light on the challenges faced by African economies in attracting private capital for green growth projects, as well as the strategies being employed to bridge this gap. Mensah-Baah emphasized the importance of ensuring that no one is left behind in the transition to clean energy, underscoring the need for sustainable and inclusive development. He also highlighted the critical role of creating bankable pipelines and providing technical assistance to make projects financially viable for private investors. Moreover, he called for a review of the global financial architecture to better align with the unique challenges faced by African nations, such as conflict, COVID-19, and unsustainable debt. Development Bank Ghana has pledged to allocate 10% of its funds to support green financing initiatives, signaling a proactive stance towards climate adaptation and mitigation. By raising awareness about the pressing environmental challenges and promoting green investment opportunities, the Development Bank is playing a crucial role in driving positive change in Ghana and beyond.