African Development Bank Group 2023 annual meetings to underline resource mobilization for climate change | African Development Bank

In just over a month, the governors of the African Development Bank Group will meet in Egypt to find ways to mobilize the robust private investment Africa needs to meet its urgent climate change adaptation and mitigation goals.

At the 2023 annual meetings of the African Development Bank Group in Sharm El-Sheikh, the bank group’s governors, executive directors and African leaders and development partners will discuss successful strategies to raise more resources. These include those from their own country, as well as investment opportunities in renewable energy and sustainable agriculture. Some 13 African heads of state and government are expected.

The theme of this year’s meetings:Mobilizing private sector finance for climate and green growth in Africa— reflects the growing urgency of African leaders for a step change in efforts to limit the temperature increase to 1.5°C above pre-industrial levels by 2100. This is seen as crucial to protecting the world’s most vulnerable countries, many of which are in Africa.

If current trends in the flow of climate finance to Africa continue, the continent will face an annual deficit of more than $127 billion by 2030. Africa could lose as much as 12% of GDP by 2100. countries represent less than 1% of GDP.

The 2023 annual meetings follow on the heels of the 27^e global climate summit (COP27) in Sharm El-Sheikh in November 2022. At COP27, the African Development Bank amplified Africa’s voice by calling for global support for a just energy transition, fulfillment of climate finance commitments and the need to compensate vulnerable countries for losses and damage caused by climate effects.

The annual meetings will be a decisive step in attracting more private sector investment into Africa’s clean energy sector. Private sector climate finance accounted for 49% (or $310 billion) of the total value of climate finance achieved in 2020. In contrast, of the $29.5 billion in climate finance flows in Africa in 2020, 80% of funding for climate investments was mobilized from public international actors, while private sector funding accounted for only 14%.

More funding will also be needed to implement climate adaptation measures. These include the adoption of climate-smart agriculture and the construction of infrastructure such as roads and bridges, which meet climate resilience standards.

The aftermath of the Covid-19 pandemic and rising global inflation combine to limit the fiscal space of African governments. In addition, they have exacerbated an increase in private financing.

The annual meetings of the African Development Bank Group also include statutory meetings and knowledge events or workshops relevant to the theme of the meetings.

The bank group governors will also conduct a high-level dialogue with Akinwumi Adesina, president of the African Development Bank Group, and his senior management team.

The dialogue will focus on the ongoing transformation of the international financial architecture and how this is likely to affect the vital role of multilateral development institutions, such as the African Development Bank, in providing loans and aid to developing countries.

The African Development Bank has been at the forefront of major initiatives to address the financial and economic challenges facing African economies. It has advocated channeling special drawing rights (SDRs) through multilateral development banks. As the only AAA-rated financial institution in Africa and a prescribed holder of SDRs by the IMF, the African Development Bank could leverage SDRs three to four times and provide more affordable long-term financing to meet the development needs of African countries .

Hassan Abdallah, governor of the Central Bank of Egypt and current chairman of the African Development Bank’s Board of Governors, said the meetings will allow member states to contribute to the bank’s mandate and its High-5 operational priorities. “It is an excellent opportunity for Egypt to collaborate and contribute to the prosperity of the continent, including the climate agenda and mobilizing more resources in Africa,” said Abdallah.

The 2023 annual meetings will also see the launch of the bank’s flagship publication – the 2023 African Economic Outlook Report – which shares the theme of the meetings.

On a recent visit to the country to review preparations for the annual meetings, Adesina told shareholders of the banking group that he was impressed with the organization of COP27 in Sharm El Sheikh. “It was Egypt at its best. Very well organised, fantastic facilities, a world class course. It made us very proud,” he said.

The theme of the 2023 meetings is also linked to the theme of last year’s Annual Meetings, Achieving climate resilience and a just energy transition for Africa.

The statutory annual meetings are the African Development Bank Group’s main event of the calendar year and attract some 3,000 participants. The 58th Annual Meetings of the Board of Directors of the African Development Bank and the 49th Meetings of the Board of Directors of the African Development Fund will be held at Sharm El-Sheikh International Conference Centre.

Visit the website of the annual meetings 2023: https://am.afdb.org/