Adesina speaks on AfDB's role in Africa’s energy transition

The African Development Bank (AfDB) is making significant strides in addressing climate change impacts on the continent with the establishment of a Just Energy Transition Facility. In an exclusive interview with CNBC Africa, President of the AfDB, Akinwumi Adesina, highlighted the potential loss of up to $40 billion by 2040 if proactive measures are not implemented. Adesina emphasized the critical need for immediate action towards sustainable energy practices to mitigate these potential losses. He commended South Africa's efforts in energy diversification and announced a $2.8 billion investment in various sectors, including renewable energy, digital infrastructure, and support for youth entrepreneurship. Adesina also underscored the continent's vulnerability to climate change, with current losses estimated at $7 to $15 billion annually. Without adaptation measures, these losses could soar to $40 billion per year by 2040. To combat this, the AfDB plans to double its climate finance to $25 billion by 2025, with a focus on supporting climate adaptation programs. Adesina stressed the importance of mobilizing resources to aid African countries in transitioning to renewable energy sources. The establishment of the Just Energy Transition Facility will allow the bank to facilitate the shift from fossil fuels to cleaner energy alternatives. The facility will target coal and heavy fuel power generation assets, aiding countries like Senegal and Nigeria in their transition to renewable energy. Adesina also called for developed countries to fulfill their promise of $100 billion annually for adaptation in developing nations. He stressed the urgency of actualizing financial commitments to support climate action in Africa. Furthermore, the AfDB's commitment to green investment through initiatives like the Alliance for Green Infrastructure in Africa aims to position the continent as a leader in sustainable development. Adesina noted that moving towards a green economy not only benefits the environment but also attracts global green financing. Despite challenges posed by the conflict in Ukraine, Adesina remains optimistic about Africa's economic outlook for 2022. He highlighted the continent's resilience and attractiveness to investors, as demonstrated by the successful African Investment Forum, where $30.2 billion was raised in less than 72 hours. Adesina's vision for Africa's future focuses on sustainable green investments, positioning the continent for long-term growth and prosperity.