KAMPALA: The African Development Bank (AfDB) has underscored the urgent need for increased private sector involvement in climate finance at a key meeting of African finance ministers in Uganda.

Speaking at the “Sustainable Horizons: Climate Action Strategies for Ministries of Finance in Sub-Saharan Africa” conference in Kampala organised by Coalition of Finance Ministers for Climate Action (CFMCA), Prof. Anthony Nyong, the Bank’s Director for Climate Change and Green Growth Department, stressed that the private sector financed less than 3 percent of adaptation activities in Africa between 2019 and 2022.

“We need to mobilise $213.4 billion annually from the private sector to close Africa’s climate financing gap by 2030,” Prof. Nyong stated. He identified perceived high investment risks and poor credit ratings as significant barriers to private sector participation.

Nyong joined a panel titled Unique Opportunities and Challenges for African Ministers of Finance, moderated by Uganda’s Minister of State Planni
ng Amos Lugoloobi. Mr. Bock Kalokh, Minister of Finance, Sierra Leone; and Mr. Joseph Ng’ang’a, CEO of the Africa Climate Summit and interim CEO at the Global Energy Alliance for People and Planet.

The event concluded with a collective emphasis on the need for immediate and strategic action to address climate change in Sub-Saharan Africa. The insights provided a clear call to action for ministries of finance to prioritise and fund climate resilience initiatives, with the Bank Group positioning itself as a key facilitator in mobilising necessary resources and engaging the private sector.

Source: Emirates News Agency