September 9, 2024

African financial institutions have an increasingly important key role to play in delivering homegrown solutions to green industrialization. And while there have been a number of encouraging efforts and initiatives in recent months, more extensive action is needed to bridge the climate finance gap.

At a February 2024 policy dialogue organized by ACET, stakeholders from national development banks in Africa, commercial banks, regional financial organizations and fintech companies discussed actions that would help African financial institutions leverage efforts and expand financing. In July 2024 ACET held a follow-on policy dialogue with 75 African Ministries of Finance, G20 representatives, African financial institutions, the World Bank, and development practitioners to look at what institutional reforms are needed for accelerating investment while also advancing the climate agenda in the global financial architecture reforms.

Six key areas of emphasis emerged from these discussions where more focus and collaboration are needed to ensure that MDB and international financial reforms are successful. This policy brief explores those actions in more detail:

• The focus should be on improving the African financial architecture.
• MDB reforms should be more focused on increasing Africa’s voice.
• MDB efforts thus far are not enough to overcome Africa’s significant climate finance needs.
• Continued deeper collaboration among African institutions is needed to address Africa’s financing gaps.
• The methodologies of credit rating agencies need to reflect the realities of African economies.
• More knowledge sharing and capacity is needed across countries.

To read the policy brief click the learn more link below.

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