Development Finance Institutions (DFIs) need to play a strategic role in supporting member institutions and the African DFI community in addressing climate change.
Citizen Entrepreneurial Development Agency Botswana (CEDA), CEO, Thabo Thamane was giving remarks at the Launch of the Association’s Working Group on Climate Finance on November 9, 2023, in Nigeria. Thamane is also the Association of African Development Finance Institutions (AADFI) Chairman. The AADFI Working Group on Climate Change comprises member institutions focused on driving the climate agenda in their institutions and communities.
Giving the remarks, he said the Association needs this working group to address the challenges of climate change. He said as DFIs, it is most desirable at this time, that they be involved in providing solutions,
According to Thamane, the group is part of the African DFIs’ strategic role in supporting member institutions and the African DFI community in addressing the climate challenges.
“The group will lead the AADFI agenda on climate change and generate ideas and actions that will enable the Association and its members to be relevant in the climate change agenda,” he asserted.
Moreover, Thamane said the Group will lead the effort in attracting technical assistants and support to build the skills and capacity of member DFIs on climate change, guide African national DFIs in mobilising finance, identifying funding opportunities for green projects (connecting finance to green projects, raising Green Bond), and hand-holding other national DFIs to pursue climate change projects. In furtherance, the Group will collaborate with the African Financial Alliance on Climate Change (AFAC) and represent the interests of member AADFI in the alliance, said Thamane.
He added further that it will leverage other support from the AfDB, the Global Center on Adaptation, the Green Climate Fund (GCF), and other partners to support member DFIs’ actions on climate change. It aims to drive meaningful change and accelerate Africa’s just energy transition by collaborating with various stakeholders and partners.
Establishing the AADFI Working Group on Climate Change
At the conclusion of the AADFI 2023 Annual General Assembly held under the theme “The Role of African DFIs in Achieving Just Energy Transition” in Egypt on May 22, 2023, Thamane said it was resolved to set up the AADFI Working Group on Climate Change.
He added that this resolution was crystalised by the AADFI Board of Directors on August 28, with the approval of the Working Group and its operational modalities. The Working Group is chaired by the Development Bank of Southern Africa (DBSA), under the leadership of CEO, Boitumelo Mosako. Olymous Manthata, Head of Climate Finance at the DBSA, will coordinate the working group.