Africa cannot rely on government budgets alone to finance its climate ambitions, Deputy Finance Minister Thomas Nyarko Ampem has warned, as countries face growing pressure on their public finances.
Speaking at the opening of the Green Climate Fund’s Regional Dialogue for West and Central Africa in Accra, Mr Nyarko Ampem said governments were already under pressure to fund education, healthcare, infrastructure and social protection while dealing with the rising costs of climate change.
He said public and concessional funds must instead be used strategically to reduce investment risks and attract private capital.
“We cannot fund every climate investment from the public purse, nor should we attempt to. The national budget cannot be the only engine pulling the climate finance train.”
Africa needs an estimated $2.7 trillion between 2020 and 2030 to implement its climate commitments, according to the African Development Bank.
Mr Nyarko Ampem said the challenge was therefore not only securing climate finance, but using public resources to unlock significantly larger volumes of private investment.
Ghana currently has 13 projects in its Green Climate Fund portfolio, with about $209 million in GCF financing and a further $5.7 million in approved readiness support.
GCF Director for the Africa Region, Catherine Koffman, said the Fund has so far committed about $20 billion towards its $50 billion target for 2030, representing roughly 40 percent of the target.
She said, “We want to achieve 50 billion by 2030. At the moment we are at $20 billion at GCF, and 40% of that goes to the Africa region, which is about $7.6 billion. And for Western Central Africa, which is what this dialogue is about, it’s about $2.9 billion.”
The GCF has committed about $2.9 billion across 80 projects in West and Central Africa, according to the Fund.
The four-day regional dialogue is bringing together governments, financial institutions and private-sector partners from 25 countries to discuss ways of scaling up access to climate finance.
The meeting comes as the Green Climate Fund begins its third replenishment process and works towards expanding its regional presence in Africa.
My Michael Ogbodu
