Making green finance work for Africa's sustainable future
Funding new models of green finance for the African continent creates channels for private finance to flow into previously neglected areas of climate action and conservation. There is a severe lack of investment going into innovation for climate resilience. The current gap stands at up to $330 million across emerging markets. CNBC Africa spoke to Mark Naper, CEO of FSD Africa for more.
Tue, 08 Nov 2022 15:13:47 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The current state of green finance in Africa reveals a significant gap in private sector investments, with only a small portion of climate finance coming from private sources.
- Boosting the share of private finance is crucial in improving climate finance in Africa, necessitating the enhancement of domestic capital markets and regulatory frameworks to attract investments.
- Partnerships between public and private sectors, along with innovative financial instruments like insurance products and guarantees, are essential to mitigate risks and increase investor appetite in Africa.
Funding new models of green finance for the African continent creates channels for private finance to flow into previously neglected areas of climate action and conservation. This is a via lack of investment going into innovation for climate resilience. The current gap stands at about $330 million US dollars across emerging markets. Mark Napier, the CEO of FSD Africa, sheds light on the state of green finance in Africa in a recent interview. According to Napier, Africa receives only a fraction of global climate finance, with just $4 billion out of $30 billion coming from private sector investments. This amounts to a meager 4.5% of the global total, indicating a significant gap that needs to be bridged for Africa to achieve its fair share of climate finance. While some countries like Kenya, Nigeria, and South Africa are performing relatively well in attracting climate finance, there is still a vast portion of Africa struggling to lure in investments. This trend poses both risks and opportunities for the continent as a whole.
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