CBE's Governor: $ 30 bn, value of climate finance flows to Africa during 2022, 12% of the required funding.

Hassan Abdullah, Governor of the Central Bank of Egypt and Governor of Egypt at the African Development Bank, said that the volume of domestic and international financial flows allocated to face climate change in Africa amounted to only $ 30 bn, which does not exceed 12% of the volume of financing required, which reflects  financing gap faced by countries of Africa this field.

This came during his speech at the opening session of the 58th annual meeting of the African Development Bank Group, held in Sharm El-Sheikh, May 22 to 26, under the supervision of President Abdel Fattah El-Sisi and the Central Bank of Egypt.

Regarding regional and international financing institutions, he indicated the need for these institutions to reconsider adopting a new approach to support the countries of Africa, it is not limited to providing loans, but to increase the flow of their financing channels towards encouraging Investments in environmental and development projects that achieve sustainable development.

The Governor added:"I see the possibility for these institutions to adopt a clear message, which requires avoiding the expansion of high-cost lending, and encouraging Direct investments in Africa."

It is worth noting that Egypt started its activities at the conference as the host country, entitled “Mobilizing Blended Finance to Facilitate Green Transformation in Emerging Economies” moderated by Aliou Maiga, Regional Director of the Financial Institutions Group in Africa at IFC.

Moreover, The conference will discuss a number of important topics and files, led by the high-level presidential dialogue on  changing global financial structures and the role of multilateral banks.

The meetings will also witness the issuance of African Economic Outlook 2023 report on mobilizing private sector financing for climate and green growth in Africa, in addition to wide discussion sessions in the presence of leaders and officials from Egypt and African countries on benefiting from innovative financing tools to mobilize private climate investments in Africa.

The meetings witness key measures to achieve comprehensive growth and sustainable development in the continent, and the role of financial technology in launching sustainable and green finance.