The study assesses the readiness of African Development Finance Institutions (DFIs) to access climate finance. It examines their commitment to the energy transition, challenges in implementing green financing, and the support needed in capacity building and technical assistance. It highlights regulatory barriers, lack of expertise, and limited funding access, recommending capacity strengthening and streamlined accreditation processes.
The study evaluates the readiness of African Development Finance Institutions (DFIs) to access climate finance, based on a survey of 40 DFIs, representing 50% of the study population. It analyzes their involvement in green projects, with 87.5% integrating climate finance into their strategy, but only 60% expressing interest in climate initiatives. While 72.5% engage in climate projects, just 7.5% are accredited with the Green Climate Fund (GCF), 2.5% with the Global Environmental Facility (GEF), and 2.5% with the Adaptation Fund. Key barriers include complex accreditation processes, insufficient expertise, and funding constraints, with 85% of DFIs struggling to develop climate finance products. The study recommends capacity building, technical assistance, and policy advocacy to improve access to climate finance. Strengthening institutional frameworks, aligning projects with Nationally Determined Contributions (NDCs), and expanding partnerships with international donors are crucial to advancing African DFIs’ role in financing climate-resilient development.
