Africa (Common Wealth) _The Africa Development Bank (AfDB), in collaboration with the Global Center on Adaptation, has pledged Ksh145.5 billion ($996.6 million) to promote African youth companies in the battle against climate change.
The bank announced the money on it’s X (formerly Twitter) social media page, stating that it will benefit youth-led firms.
The African Development Bank Group and the Global Center for Adaptation (GCA) are launching a Ksh145.5 billion project to fund youth-led enterprises and startups. The funding injection will help young businesses all around Africa. According to the statement, it is an exciting step toward economic growth.
GCA is an international organization dedicated to expediting climate change solutions. Akinwumi Adesina, President of the African Development Bank, stated during the Africa Youth Climate Assembly that youth investment is vital in supporting growth and stability on the continent.
Mr Adesina stated that the greatest risk is not investing in the youth, and that the kids require investment rather than empowerment. He went on to say that African nations should consider climate-friendly initiatives freely, not because someone told them to, but because we have to.
The bank will increase its existing $4 million commitment in the YouthADAPT program, which is run in collaboration with GCA. The program is an annual competition and rewards program that aims to increase long-term job development by encouraging entrepreneurship and youth-led climate change solutions.
The program welcomes African young entrepreneurs and Micro, Small, and Medium-sized Enterprises to submit creative solutions and business ideas to advance climate change adaptation and resilience. AfDB is also sponsoring the Africa Adaptation Acceleration Programme as part of its relationship with GCA.
The financier advocated for a shift in global financial architecture to prioritize Africa’s needs, while also asking delegates to mobilize resources for climate finance. Despite accounting for only 4% of global greenhouse gas emissions, Africa suffers disproportionately from climate change. It poses a significant threat to the continent’s human well-being and growth.
Many African countries rely heavily on climate-vulnerable sectors including electricity, tourism, water, and agriculture to survive and prosper. Several African countries rely heavily on climate-sensitive sectors such as energy, tourism, water resources, and agriculture as the backbones of their economic sustenance and progress.
President William Ruto has urged delegates and world leaders to treat Africa on a level playing field in the fight against climate change. Climate change poses a challenge to Africa’s sustainable development, particularly in impoverished and vulnerable countries that have contributed the least to greenhouse gas emissions.
The bank increased the proportion of its projects based on climate-informed designs from 77% in 2016 to 94% in 2022. It boosted its climate finance spending from $2.1 billion in 2020 to $2.4 billion in 2021 and $3.6 billion in 2022, allocating 67% of its climate finance investments toward adaptation in 2021 and 63% in 2022.
Meanwhile, African Development Bank (AfDB) President Akinwumi Adesina announced a $25 million commitment to climate finance. During the second day of the Africa Climate Summit in Nairobi, he urged for a shift in global financial architecture to prioritize Africa’s needs, while simultaneously pushing delegates to mobilize resources for climate financing.
He stated that Africa must exploit its natural gas and mix it with renewable resources, and that Africa’s food and agriculture must be climate resilient. Mr Adesina went on to say that African nations should consider climate-friendly initiatives freely, not because someone told them to, but because we have to.
We must revalue Africa’s riches by accounting for the right assessment of its natural resources, such as the Congo forest, which serves as a carbon sink. The GDP of Africa must be revalued based on carbon sequestration. Africa needs to create its own carbon markets. It cannot be both rich in nature and impoverished in cash.