AfDB President Akinwumi Adesina said that African nations need to develop long-term strategies for green growth and strengthen capital markets to attract financing.
On Thursday, Kenya called on development financial institutions to devise innovative climate financing frameworks to drive green growth.
Njuguna Ndung'u, cabinet secretary of the National Treasury and Economic Planning, said that the new financial architecture would help Africa access financing for its green initiatives.
"The call for reforms in the international financing architecture would align with the aspirations of the Paris Agreement and facilitate climate finance flows to where they are needed most," Ndung'u said during the virtual launch of the Kenya Country Focus Report 2023 by the African Development Bank (AfDB), with the theme of mobilizing climate change financing.
.#Kenya is making waves as a fast-growing economy & emerging as a climate leader, manufacturer, agricultural producer, and a hub of #Entrepreneurship. At @IFC_org we are working with public and private partners to unlock financing for inclusive growth and prosperity! pic.twitter.com/iWuNpuULyp— IFC Africa (@IFCAfrica) September 28, 2023
According to Ndung'u, the new financing model should involve the private sector, allowing them to contribute up to 25 percent of climate financing, as the majority of funds currently come from the public sector.
AfDB President Akinwumi Adesina said that African nations need to develop long-term strategies for green growth and strengthen capital markets to attract financing. He suggested that one way to attract private financing in the sector is through the issuance of green bonds.
Calling all tourism enthusiasts and businesses! Join the 3rd East Africa Regional Tourism Expo as an exhibitor and become a part of an exciting showcase dedicated to tourism for green growth. #EarteMkte2023— Onsase (@MrOnsase) September 29, 2023
East Africa Region Tour Expo
Magical Kenya Tour Expo pic.twitter.com/g40LsRvXJv
Nnenna Nwabufo, AfDB's director-general for the East Africa region, stressed that Africa must incorporate private sector financing if it is to fund its ambitious green initiatives.
The drivers of green growth include the reduction in greenhouse gas emissions. The report called on Kenya to increase the use of blended finance instruments to finance green growth.