AfDB Annual Meetings: Lack of bankable green projects, a big problem in Africa

The lack of bankable projects for mobilizing financing for green growth in Africa has been a significant concern at the recent AfDB Annual Meetings. Hind Chawki, Managing Director and Head of ESG at Standard Chartered, highlighted the challenges and opportunities in the region during an interview with CNBC Africa. Chawki emphasized the importance of scaling private capital into emerging markets through blended finance involving private and multilateral development banks. She noted that the current trend of multilateral banks taking on projects themselves crowds out private capital, underscoring the need for collaboration. The size and viability of projects are crucial, with a focus on ensuring that investments generate returns and do not burden countries with unsustainable debt. Public-private partnerships have emerged as a key strategy for enabling climate financing and driving sustainable development in Africa. Chawki also discussed the concept of de-risking investments, addressing the perceived risks that deter investors from participating in green projects. By combining multilateral and private capital and aligning efforts towards green growth, Chawki advocated for a collaborative approach to address the growing financial challenges across the continent. Standard Chartered has been actively involved in sustainable finance initiatives, with a strong focus on green projects in emerging markets. The bank has spearheaded projects in wind energy and water accessibility, aiming to support communities and promote adaptation finance. Chawki highlighted the unique position of Standard Chartered in assisting clients with their transition towards sustainable practices, leveraging its expertise in emerging markets. Africa holds immense potential for green energy investments, with abundant natural resources that can drive the transition towards renewable sources. The continent's vast wind, solar, and geothermal capacity presents opportunities for green hydrogen and renewable energy projects. Chawki emphasized the advantage of localizing energy production, enabling African countries to industrialize and export with greater efficiency. The ongoing annual meetings have underlined the shift towards green growth in Africa, signaling a departure from fossil fuel reliance towards embracing sustainable development. Chawki commended the focus on green initiatives at the event, highlighting the continent's vast potential for leveraging green projects for economic growth and environmental sustainability. The discussions at the meetings have emphasized the transformative impact of green financing and the importance of collaboration in driving sustainable development across Africa.