Blended innovative financing: Master stroke to Africa’s climate financing

As Africa prepares to host the first-ever climate summit in Nairobi early in September, significant threats linger on the continent's ability to tap innovative financing to address the pressing climate change needs. Shirley Mburu, Program Director of TECA, joined CNBC Africa to shed light on the crucial issues at hand. Mburu highlighted that Africa, despite being the least responsible for climate change, faces severe consequences due to its adverse effects and struggles with coping mechanisms. The continent heavily relies on agriculture, making it vulnerable to climate change impacts, such as severe droughts leading to food insecurity and income loss. Moreover, the diversion of resources towards coping with climate disasters hinders standard growth and can set countries back significantly. The displacement of people due to climate change can also lead to instability and conflict, as seen in the case of Syria. Mburu emphasized the urgent need for climate financing that focuses on adaptation rather than just mitigation, and expressed concerns over the high proportion of climate financing being in the form of commercial debt. She emphasized the importance of considering the adverse effects of such financing in the context of Africa's existing debt crisis. Innovative climate financing could play a critical role in addressing these challenges. Organizations like BFA Global's program TECA provide returnable grants to young people developing climate solutions without interest, ensuring the sustainability of projects. Women, who are disproportionately affected by climate change, play a vital role in climate solutions. Women-led enterprises have been shown to outperform male-dominated enterprises, indicating the potential for gender-inclusive climate strategies. Mburu stressed the importance of empowering women to drive climate innovation. Innovative financing solutions, such as the ones implemented by TECA and Catalyst Fund, present promising avenues for addressing Africa's climate change needs and building resilience against its adverse effects. The upcoming Africa climate summit in Nairobi provides a crucial platform for stakeholders to collaborate and prioritize solutions that focus on adaptation, sustainable development, and gender inclusivity.