The African Development Bank has launched the African Green Bank Initiative, a significant step in Africa's climate finance journey.
Launched at COP27, the initiative has already led to the establishment of green banks in Benin, Ivory Coast, Morocco, Egypt, and the capitalization of Rwanda's $142 million Ireme Invest. Despite Africa's vulnerability to climate change and receiving only 3% of global climate finance, this initiative introduces blended financial instruments within existing institutions to attract both international and local climate finance.
By 2030, this initiative ambitiously aims to create an ecosystem of green investment facilities across Africa valued at up to $1.5 billion. This network of green banks is expected to mobilize transformative climate projects, enhancing Africa's capacity to tackle climate change.