Afreximbank Doubles Commitment To Support Africa’s Energy Transition

Posted by African Examiner Business News, Latest Headlines Thursday, November 14th, 2024

(AFRICAN EXAMINER) – African Export-Import Bank (Afreximbank) is doubling its commitment to facilitating a just energy transition for Africa that supports the continent’s critical development needs and unlocks its economic potential.

This was made known in a statement issued by Vincent Musumba, Afeximbank’s Communications and Events Manager, on Thursday, as the bank participates at COP29 in Baku, Azerbaijan.

Musumba said the bank’s participation at COP28 would align with the African Union’s Nairobi Declaration from the 2023 Africa Climate Summit

He said it would also build on COP28’s actions around climate finance, loss and damage compensation, utilising gas as a transitional fuel and mobilising high-quality climate finance.

“Afreximbank’s efforts will integrate climate change with development goals, emphasising the role of the African Continental Free Trade Area (AfCFTA) in fostering sustainable growth and regional integration.

“Importantly, the foregoing considerations will also be anchored on the core principles of the AU Agenda 2063: The Africa We Want.”

Musumba said that a primary objective of the bank would be to advocate for the swift operationalisation of the Loss and Damage Fund, which provides financial support to countries suffering from climate-related losses.

He said the bank would also push for the timely disbursement of the funds to African countries to address both immediate and long-term climate impacts.

“ The bank will also emphasise the importance of transparent and accessible finance mechanisms to ensure that local communities directly affected by climate change can receive the support they need.”

Musumba quoted Prof. Benedict Oramah, President and Chairman of the Board of Directors, Afreximbank, who spoke during the African Day at African Union’s Pavilion at COP29, as saying :

“Africa is disproportionately affected by the impacts of global climate change despite being responsible for less than four per cent of global emissions.

“Losses in economic growth, migrations and regional instability represent significant negative impacts of climate change on the continent that will probably intensify in the next decade.

“We are at the point where taking action does not only suggest good environmental stewardship but must also be seen as a sound economic policy

“ This is considering that the cost of immediate and decisive action is far less than the cost of inaction and delayed efforts.”

Oramah said the issue of financing climate adaptation in Africa and the Island States of the Caribbean had become an emergency.

“Therefore, our participation at COP29 is an opportunity to advocate for Africa and the Caribbean’s climate priorities, amplify their voice in global discussions, and push for urgent climate finance.”

He said that financial resources and sound investments were critical to addressing climate change, lowering emissions, encouraging adaptation as well as building resilience.

“Africa, for instance, needs between 1.3 trillion Dollars and 1.6 trillion Dollars in total climate financing every year till 2030 to meet its pressing needs.

“Understanding its mandate as a trade and development partner for Africa and the Caribbean community, Afreximbank will advocate for policies and investments to accelerate Africa’s energy transition.

“Afreximbank will responsibly develop the content’s abundant natural resources, ensuring adequate infrastructure to reduce energy poverty, facilitate trade, and position the continent for an accelerated and appropriate energy transition.”

Oramah added that the bank would advocate for a scaling up of the New Collective Quantified Goal on Climate Finance (NCQG) to replace the previous 100 billion Dollar pledge, which had seen insufficient disbursement.

He said Afreximbank would also push for financial mechanisms like green bonds, concessional loans, and carbon markets to fund Africa’s climate projects.

Musumba said Afreximbank would also engage in side events and panels at COP29, focusing on solutions for Africa.

According to him, Afreximbank will commit to progress discussions that build upon amplifying the African climate narrative, supporting just energy transition for Africa, and mobilising climate finance. (NAN)