On the heels of the COP28 global climate summit, the Eastern and Southern African Trade and Development Bank Group (TDB Group) and the Global Green Growth Institute (GGGI) signed an agreement aimed at fostering cooperation in climate adaptation funding and accelerating TDB’s climate finance strategy implementation in TDB member states.
The agreement, signed on 20th December 2023 establishes a framework between TDB Group and GGGI to pursue eligible transactions contributing to sustainable economic growth across Africa. Specifically, TDB Group and GGGI will explore opportunities in adaptation finance, co-financing, and project finance in the region served by TDB.
Furthermore, joint efforts will be invested in implementing TDB’s Climate Finance Strategy, pipeline development, and equity mobilization from potential institutions, including financial entities, pension funds, and investors. TDB and GGGI will also facilitate the exchange of knowledge and best practices in related topics.
Admassu Tadesse, TDB Group President and Managing Director said that
“This collaboration with GGGI aligns with our commitment to promoting a model of sustainable development across Africa which takes into consideration climate imperatives, including adaptation finance. We are keen to work together on expanding the capital available and broadening the pipeline of projects to this effect, and thus step-up our triple bottom-line impact in the economies we serve.”
According to the Global Centre on Adaptation, the flow of adaptation finance to Africa must increase to over USD 100 billion per year by 2035 to build resilience against climate change and unlock up to USD 6 trillion in economic benefits during the same period.
Mary Kamari, TDB Group Corporate Affairs and Investor Relations Executive said:
“As part of this wide gap which exists in adaptation finance, adaption solutions in agriculture for African farmers, which represent about half of the continent’s workforce, are becoming increasingly critical. We look forward to working with GGGI to scale-up our interventions in this space.”
Malle Fofana, Africa Regional Director, Global Green Growth Institute added:
“We need to work collaboratively to ensure that the potential of African farmers is realized. Having access to quality investment and finance is a key driving factor in building a sustainable, climate-resilient future. GGGI is pleased to partner with TDB to unlock investments and financial opportunities in the agricultural sector potentially benefiting millions of people across Africa.”
