Canada and AfDB Sign $ 11.3 Million Gender-Focused Climate Fund for Africa
This is a transformative special fund aimed at providing concessional loans to climate change related projects with a strong gender sensitive component. It will be administered by the bank.
The fund will be capitalized through a combination of a repayable contribution of $ 104.8 million to provide concessional loans for sovereign and non-sovereign operations, plus a contribution of $ 8.5 million for complementary technical assistance.
Speaking at a virtual signing ceremony to close the deal, held on March 17 on the sidelines of the Canada-Africa Symposium on Clean Growth, Canadian Minister of International Development Karina Gould said that the investment, with its strong gender imprint, recognized “the essential role that women need. to play in climate action and support their efforts to mitigate and adapt to the effects of climate change ”.
She added: “Climate change is one of the most important challenges of our time… And, although we are all affected by it, we know in Canada that not everyone is affected in the same way… this means that the vulnerable and marginalized are the most affected. this crisis.
As a concessional facility, CACF will deploy its resources in innovative low carbon technologies, renewable energies, climate smart agriculture, sustainable forestry, water management and climate resilience projects. .
The fund will finance climate change-related projects in AfDB regional member countries, including those with a strong focus on gender equality. Empowering women and girls will be a goal in all CACF concessional funding, targeting direct and measurable gender equality results.
“To rebuild Africa, climate resilience is very important… This is why I am thrilled and delighted with the Canada-African Development Bank Climate Fund that we are launching today,” said AfDB President, Dr. Akinwumi A. Adesina, in a speech after the announcement. .
He thanked Canada for its “huge” support to the bank in terms of general capital increases, temporary callable capital and the support the country has provided to Africa through the bank.
Adesina added: “These resources that you make available are very unique, to help us adapt. First, it’s about long-term funding. It will provide long-term capital to the private and public sectors.
“It also provides it at levels that are affordable for countries… What I like most is that it looks at the multisectoral use of this funding… all of these things are very important to support Africa in the adaptation and mitigation of climate change, ”said Adesina.
“Canada has always been there for Africa… Canada is a great friend of Africa,” he said.
AfDB’s climate finance has quadrupled from 9% of its total portfolio in 2016 to 36% in 2019, and is on track to meet its target of 40% of the total portfolio by the end of this year . The bank has pledged to provide $ 25 billion in climate finance by 2025.
The Canada-Africa Symposium on Clean Growth, co-hosted by Canada, Ethiopia and Senegal, brings together economic and business leaders from the public and private sectors from Canada and sub-Saharan Africa to explore innovative ways to do grow their economies, while reducing emissions and building resilience to climate change.
The sessions focused on a model for a green economy, integrating social and economic development, while ensuring sustainable management of natural resources, minimizing waste and pollution, and following climate and climate resilient development pathways. low carbon emission.
The symposium also included trade policy discussions on environmental considerations in international trade and the promotion of rules-based trade.
Canada, one of the main non-regional members of the AfDB, has participated in all of the Group’s capital increases. This includes its 7th General Capital Increase, African Development Fund replenishments including the Fund’s 15th Replenishment (ADF-15), with a 7.5% increase in units of account (UA) of the Fund. African development bank.
He has also contributed to numerous trust funds and initiatives managed by the Bank Group.