In 2023, the African Development Bank Group (AFDB) mobilized a total of $5.8 billion.
This amount was sourced from the Bank’s internal funds.
The Bank has grown its climate finance from 9% in 2016 to 55% in 2023 for a total of 5,8 billion mobilized in 2023.
The Bank said in its latest report “from innovative green financing to impactful projects” in 2023, the AFDB played a pivotal role in shaping climate initiatives, promoting alignment with the continent’s priorities, and contributing to a sustainable future.
To achieve this, the Bank took key steps to foster progress on climate action in Africa in 2023.
The African Economic Outlook (AEO) 2022 projects current economic losses from climate change of between $7 to $15 billion annually, this is expected to rise to about $50 billion by 2030.
Between 2013 and 2022, natural disasters claimed over 100,000 lives across the continent, with an additional 131 million people affected.
Cyclone Freddy’s impact in 2023, especially in Malawi, Mozambique, Madagascar, Zimbabwe, and Mauritius, led to close to 1,500 fatalities, extensive infrastructure damage, and cholera epidemics. Devastating floods in the Democratic Republic of the Congo, Rwanda, and Libya exacerbated the situation. Climate change has become the primary threat amplifier for Africa’s socio-economic development, in that its effects interact with and potentially exacerbate pre-existing threats and other drivers of instability.
Global climate finance is reported to have increased in recent years, resulting from stronger South-South and North-South collaboration and higher recognition of the climate adaptation needs in the Global South.
Global climate finance flows are currently estimated to be between $600 and $900 billion annually.
However, Africa currently receives just about 3% of it, which is largely insufficient to support its climate-resilient growth ambitions.
As a response, the African Development Bank has adopted a strategic framework (2021) to deliver comprehensive and coordinated climate actions to seize the opportunities as well as address the continent’s vulnerabilities.
Through the Bank’s Third Climate Action Plan (2021-2025), the Bank is working with partners to mobilize $25 billion in climate finance by 2025, with a vision to increasing Africa’s share of global climate finance from 3% to 10% by 2030.