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The African Development Bank Group (AfDB) says Africa needs more private sector investment to achieve emissions reductions and adapt to the impacts of climate change.

In a statement issued on Tuesday, the bank said African countries are experiencing financing constraints and resources to combat climate change and support a green economy. 

AfDB said Africa contributes the least to the pollution of the planet but the continent is one of the world’s most vulnerable to climate change risks.

The bank said there is potential for climate finance in Africa to increase, adding that the private sector has a major role to play in closing the finance gap.

“Africa, the continent that pollutes the planet the least, is today one of the world’s most vulnerable to climate risks,” the statement reads.

“While nations across the continent grapple with financing constraints, resources from the international private sector, including multilateral development financiers such as the African Development Bank, are helping to catalyze climate action and green growth.

“For the African Development Bank, greater involvement of the private sector is crucial to closing the gap in climate finance flows into Africa, which until recently, was dominated by non-private actors.

“For example, of the $29.5 billion invested in African climate finance in 2020, only 14 percent was from private actors. This is significantly lower than comparable regions such as Latin America and the Caribbean (49 percent), East Asia and the Pacific (39 percent) and South Asia (37 percent).

“Besides, these limited funds covered a small number of African countries with relatively developed financial markets, such as South Africa, Nigeria, Kenya, Morocco, and Egypt, which alone attracted $4.2 billion.

“It is the reason the Bank Group has made mobilizing private sector financing for climate and green growth the centerpiece of its 2023 Annual Meetings scheduled for 22-26 May in Sharm El Sheikh, Egypt.

“The meetings will discuss successful strategies to galvanize more resources, including within Africa, and investment opportunities in renewable energy and sustainable agriculture.

“To combat climate change and support green growth, African countries need more climate investments to achieve their national targets for emissions reductions and adaptation to the impacts of climate change.

“It is implementing mechanisms to facilitate and channel access to global climate finance, particularly from the private sector. It has also launched programs to mitigate risks and barriers to private sector participation in climate finance and green growth in Africa.”

AfDB said it has committed to mobilise $25 billion by 2025, representing 41 percent of its total funding commitments.