AfDB’s Ogunleye on Africa’s options for financing climate change mitigation

Africa is facing a daunting challenge as the continent grapples with the impact of climate change. According to the African Development Bank (AfDB), by 2050, Africa will need at least $50 billion annually to adapt to climate change. Despite the pressing need for funds, Africa has the lowest per capita climate finance flows globally, raising questions about climate justice. In a recent interview with CNBC Africa, Dr. Eric Ogunleye, the manager for Policy Management Division at the African Development Institute at AfDB, shed light on the funding opportunities available for climate change adaptation. The conference's theme, centered on supporting climate-smart development, aims to attract financial support for initiatives in various areas such as agriculture, natural asset management, and other vulnerable sectors in African countries. Dr. Ogunleye highlighted the importance of tapping into diverse funding sources, including the skills and talents of young people, innovative financial solutions, fintech applications, and crowdfunding mechanisms. In order to address the massive funding gap, Dr. Ogunleye emphasized the necessity of collaboration among multiple stakeholders, including the private sector, governments, the donor community, and individuals in the diaspora. He stressed the need for a unified approach to channel resources at a scale that can effectively address the challenges faced by African countries. Looking ahead to 2050, Dr. Ogunleye underscored the urgent need for $50 billion to finance climate mitigation efforts on the continent. He outlined the importance of establishing a robust institution, akin to the African Development Bank, to serve as a centralized platform for coordinating financial support and facilitating impactful investments in key sectors like agriculture and natural capital management. Dr. Ogunleye pointed to initiatives like the African Investment Forum as a model for bringing together diverse stakeholders to fund visionary projects. By leveraging the expertise and creativity of young individuals, Africa can harness the necessary solutions to combat climate change effectively. Moreover, Dr. Ogunleye called for accountability from nations responsible for the bulk of climate-induced challenges, stating that these countries should provide the requisite resources to address the damages caused by their actions. He emphasized the concept of a 'just transition' where polluting nations assume responsibility for their environmental impact and contribute to remedial efforts. In light of the recent COP27 climate conference, Dr. Ogunleye stressed the importance of African countries amplifying their voices and advocating for greater support on the global stage. He highlighted the critical role of knowledge and information in empowering African nations to effectively articulate their financing needs and address the challenges posed by climate change. As Africa navigates the complex landscape of climate change financing, initiatives like the African Development Bank's efforts to mobilize resources, empower youth, and promote sustainable development play a pivotal role in shaping a resilient and sustainable future for the continent.