CONTEXT: Africa provides a wealth of investment opportunities in sectors such as renewable energy and sustainable agribusiness and plays a key role in the world’s energy transition. However, climate finance flows received by the region in 2020 totaled $22.4 billion (including $15.6 billion – 70% - of concessional finance), well short of the region’s needs estimated at $240 billion per year by 2050. While this represents almost a fourfold increase from a decade ago and is progress, concessional finance by itself is unlikely to meet the region’s transition and resilience needs. This is where the use of innovative climate finance instruments can play a role to leverage increased financial flows from new sources, particularly the private sector, as well as providing a key opportunity for the African financial sector to take the lead in this investment opportunity.
TARGET AUDIENCE: Policy makers, private and financial sector representatives, business associations, young professionals
OBJECTIVE: This session brings together MDBs, the financial sector, innovative funds, and development partners to share their experience and recommendations moving forward on risk-sharing facilities and instruments in the context of investing for climate mitigation and adaptation in Africa. Following the first, scene-setting, session highlighting challenges and opportunities, the second panel discussion will open with an overview of key findings from a recently completed market study commissioned by Compact with Africa – Green Business Fund on the use of guarantees for solar SMEs in West Africa. This session aims to have an open conversation on what works, what doesn’t and lessons for better designed instruments that could be applied across various sectors in the African context.
