AfDB Annual Meetings: How Norway is tapping into opportunities in Africa

Norway is strategically positioning itself to tap into investment opportunities in Africa, particularly in climate-related sectors, with a primary focus on achieving food security. Bjørg Sandkjær, the Governor of Norway for the African Development Bank, highlighted this key focus during a conversation with CNBC Africa's Kenneth Igbomor at the annual meeting of the African Development Bank. The goal is to leverage limited public funding to unlock private investments in renewable energy and other climate-related areas on the African continent. Sandkjær emphasized the importance of creating an enabling environment in collaboration with governments, development partners, and the private sector to catalyze sustainable development in Africa. He underscored the potential for significant investment in climate-related areas in Africa, and the imperative for concerted efforts to realize this potential. Norway's development priorities in Africa revolve around aligning climate initiatives with broader development goals, notably food security. By engaging with a variety of stakeholders such as the African Development Bank, UN agencies, civil society, and the private sector, Norway aims to optimize the impact of its public funding by attracting private capital to drive progress in climate resilience and food security across the continent. Sandkjær acknowledged that the private sector is willing to invest in Africa's green growth sector but faces challenges related to perceived high risks and the need for 'bankable projects.' Governments and funders can play a critical role in de-risking investments and supporting the development of viable projects to attract private sector participation. Despite global uncertainties and funding constraints, Norway is committed to doubling its climate finance, with a particular focus on climate adaptation. Sandkjær stressed the urgency of addressing the visible climate crisis in Africa by scaling up funding and partnering with other development actors to bridge the financing gap. He emphasized the importance of collaborating with the private sector to unlock additional financing and create sustainable business opportunities that align with long-term development objectives. Drawing from the discussions at the African Development Bank annual meeting, Sandkjær identified key takeaways that underscore the readiness of investors, the momentum among stakeholders, and the critical role of development partners in facilitating strategic investments in renewable energy, agriculture, and other key sectors in Africa. The prevailing narrative advocates for crowding private sector finance to address climate and green growth challenges, signaling a shift towards sustainable and impactful development initiatives in the region. Sandkjær's insights reflect a growing consensus among stakeholders on the imperative of driving actionable solutions to address climate-related issues and foster sustainable development in Africa.