The 58th Annual Meetings of the African Development Bank and the 49th Board of Governors of the African Development Fund kicked off in Sharm El-Sheikh, Egypt, on Monday.
African ministers and officials agreed that sustainable financing development is less heavy than the repercussions of poverty experienced on the continent, noting that as global challenges increase, they remain more severe in poor African countries.
However, some believe that achieving comprehensive growth and sustainable development will only be possible through joint action and economic integration among African countries.
Egypt’s Minister for International Cooperation Rania al-Mashat said fair and adequate financing helps reduce investment risks in emerging countries by reviewing innovative financing models and sheds light on successful projects compatible with climate change that can be replicated in developing countries.
She spoke at a panel discussion on “Mobilizing Blended Finance to Facilitate Green Transition in Emerging Economies”.
The Climate Policy Initiative reports said the world needs $2 trillion by 2030 to keep average global warming to 1.5° C.
Al-Mashat said that between 2019 and 2020, funds going into climate finance reached about $632 billion, meeting 14 percent of the real needs. The figure included $80 billion for developing countries, and $29.5 billion for Africa, or about 11.8 percent of its actual needs.
She pointed out that the private sector secured $306 billion in climate finance, $14 billion of which has been directed to developing countries and only $4 billion to Africa.
Egyptian Minister of Environment Yasmine Fouad highlighted the partnership between the public and private sectors in promoting efforts to adapt to the effects of climate change.
She said the public sector has a significant role in investing in infrastructure, which significantly helps attract investments in adaptation by creating a supportive climate and more guarantees.
Fouad pointed out the importance of supporting the banking sector and financing projects related to climate change.
The Minister cited the “Nouwfi” program for financing and investing in climate projects in the water, food, and energy sectors. The program is part of the eco-friendly projects within the National Climate Change Strategy 2050 and Egypt’s Vision 2030.
She described it as an essential model for linking adaptation projects and encouraging investments, noting that the platform is based on linking new and renewable energy projects with water desalination projects.
Fouad encouraged the private sector to implement projects that support small farmers, one of the groups most affected by climate change, and include local communities.
The Minister explained that investing in adaptation requires innovative solutions, so Egypt presented the nature-based solutions initiative during the Climate Conference (COP27) as a fundamental framework linking the global crises of biodiversity and climate that would reap multiple benefits for humanity and nature.
The initiative would address 26 percent of the repercussions of climate change, saving about $104 billion by 2030, reaching $303 billion in 2050, and provide significant economic and social benefits.