Summit Closes With Call For Action On Development Finance In Africa As COP27 Beckons

Posted by Eric Ojo African News, Business News, Latest Headlines Saturday, October 22nd, 2022

(AFRICAN EXAMINER) – The third edition for the Finance in Common summit ended on Thursday amid calls on the delegates to turn their commitments to do more in development financing for Africa into actions.

This is coming ahead of the 2022 United Nations Climate Change Conference (COP27) next month. The public development banks meeting in Abidjan also agreed on action points to tackle Africa’s climate finance gap.

The African Development Bank (AfDB) and the European Investment Bank (EIB) co-organized the summit under the theme; Green and Just Transition for a Sustainable Recovery.

The summit highlighted the role of public development banks in Africa’s recovery as the continent faces impacts from the COVID-19 pandemic, climate change, and Russia’s war in Ukraine.

In his closing speech, AfDB president, Dr. Akinwumi Adesina said as Africa looks towards COP27, development partners should collectively ensure that countries, especially the vulnerable ones in Africa, get the resources to adapt to climate change and support just energy transitions.

“As we leave Abidjan, let us keep our determination strong. The world needs actions, not words. Let us turn our ideas into strong commitments, and let’s turn those strong commitments into actions”, he urged the delegates.

Dr. Adesina said amid the social and political unrest occasioned by the global crises, public development banks must be bold in pooling together to foster relief for the people. “We must do better in cooperating, pooling resources, and deploying financing at scale”, he added.

He also noted that the role of public development banks and public financial institutions, which collectively deploy $2.3 trillion in annual lending per year, is crucial.

The bank chief equally mentioned plans to launch the Alliance for Green Infrastructure in Africa, saying it would be a ‘game-changer’ in bridging the investment gap for green infrastructure.

Chief Executive Officer (CEO) of the French Development Agency (AFD) and chair of the Finance in Common executive board, Rémy Rioux expressed satisfaction with delegates’ zeal to move forward with climate mitigation and adaptation in Africa for impact.

Rioux, however pointed out that a lot needs to be done. “We demonstrated our collective firepower on climate finance — but my feeling is that we are only scratching on the surface of what we can do, and to do together against environmental disruptions”, he added.

In a summary of the summit’s outcome, he said it showcased a shared vision among Finance in Common members in favor of a sustainable investment policy for development.

Similarly, the Vice President of EIB, Thomas Östros, said the three-day summit met its goals. Still, work must continue.

“Thanks to this unique forum and the movement it represents – I feel confident that we, as public development banks, are more united than ever and heading in the same direction. The challenges are big, and so is our determination to work together”, he added.

He further stated that public development banks are in a strong position to deliver a coherent message at the 2022 COP in Egypt. “This allows us to have an even greater impact in efforts to mobilize private sector finance for climate, environmental and social challenges, and for the Sustainable Development Goals”, he further explained.

In his remarks, the president of the Caribbean Development Bank, Dr. Hyginus ‘Gene’ Leon said: “our greatest need is for a multilateralism that assures the equitable distribution of socio-economic benefits to meet diverse needs and a just transition towards development”.

In a video message, the Managing Director of International Monetary Fund (IMF), Kristalina Georgieva stressed the role of public development banks in accelerating climate adaptation to save millions of lives and reduce the cost of natural disasters.

“Public development banks bring vital resources to build resilience to current and future shocks. They also connect the private sector and governments in leveraging concessional resources for sustainable development”, she stated.

There were also messages from youth groups calling on delegates to deliver on their climate commitments and the respect for human rights across workplaces.
Youth leader Tatiana Houndjo said: “We would like to see you walk the talk with concrete actions by involving the youth and organizations working on the field”.

The 2023 summit will take place in Latin America.