Africa loses $15bn annually due to climate change — AfDB president

Dr Akinwumi Adesina, president of the African Development Bank (AfDB), says Africa loses between seven billion dollars and 15 billion dollars annually due to climate change.

The President of the bank, Dr Akinwumi Adesina said this during an interview with the British Broadcasting Corporation (BBC), which was monitored by NEWSVERGE.

According to him, this is in spite contributing only three per cent of global emissions.

Adesina said that Africa was at the forefront of climate change’s impacts, which had devastating effects on agriculture and economies.

“In response, the AfDBank has inaugurated ambitious initiatives to build resilience and adapt to a changing climate.

“The AfDB has committed to doubling its climate finance to 25 billion dollars by 2030, focusing on the African Adaptation Acceleration Programme.

“This programme aims to deploy 25 billion dollars for climate adaptation, making it the largest globally.

“Additionally, the AfDB has created a climate action window with an initial investment of 429 million dollars, expected to grow to 13 billion dollars,’’ he said.

Adesina said this window supports vulnerable countries with crop insurance, land restoration, and climate information services.

He said Innovative financial mechanisms played a crucial role in supporting these climate adaptation initiatives.

Adesina said the bank had begun using partial credit guarantees, which enabled countries like Benin, Senegal, and Cote d’Ivoire to raise significant capital at lower interest rates.

“For example, Benin raised 400 million dollars from Chinese investors using a 195 million dollar partial credit guarantee.

“The AfDB also facilitated Egypt’s Panda Bond issuance, allowing the country to secure 500 million dollars from Chinese markets.

“These financial innovations reduce the cost of borrowing for African countries and encourage long-term investments in climate resilience.

“In spite of the challenges posed by climate change, Africa is leading the charge in innovative solutions and sustainable development,’’ he said.

The AfDB boss, therefore, said that the global financial architecture was not serving Africa’s interests very well, thus requiring change.

On Special Drawing Rights (SDRs), he said the bank was championing the course on the need for Africa to take those SDRs and use them better.