Akinwumi Adesina: Africa loses $15bn annually to climate change

Akinwumi Adesina, president of the African Development Bank (AfDB), says Africa loses between $7 billion to $15 billion dollars annually due to climate change.

According to NAN, on Friday, Adesina disclosed this during an interview with the British Broadcasting Corporation (BBC).

He said Africa’s economy and agriculture are adversely affected by climate change, despite contributing only three per cent of global emissions.

Adesina said AfDB will increase its climate finance to 25 billion dollars by 2030 to build resilience and support vulnerable countries.

“In response, the AfDBank has inaugurated ambitious initiatives to build resilience and adapt to a changing climate,” he said.

“The AfDB has committed to doubling its climate finance to $25 billion by 2030, focusing on the African Adaptation Acceleration Programme.

“This programme aims to deploy $25 billion for climate adaptation, making it the largest globally.

“Additionally, the AfDB has created a climate action window with an initial investment of $429 million, expected to grow to $13 billion.”

The AfDB president said the climate action initiative will support vulnerable countries with crop insurance, land restoration, and climate information services.

Adesina said the bank is using partial credit guarantees to enable countries such as Benin, Senegal, and Cote d’Ivoire to raise significant capital at lower interest rates.

He added that AfDB’s financial innovations will play a crucial role in supporting the climate adaptation initiatives.

“For example, Benin raised $400 million from Chinese investors using a $195 million partial credit guarantee,” Adesina said.

“The AfDB also facilitated Egypt’s Panda Bond issuance, allowing the country to secure $500 million from Chinese markets.

“These financial innovations reduce the cost of borrowing for African countries and encourage long-term investments in climate resilience.

“In spite of the challenges posed by climate change, Africa is leading the change in innovative solutions and sustainable development.”