African leaders will gather in Sharm el-Sheikh, Egypt, on Tuesday for the official opening of the 2023 African Development Bank (AfDB) Annual Meetings to discuss ways to increase private sector investment in clean energy and sustainable agriculture in Africa. The agenda of the meetings includes the 58th Annual Meeting of the Board of Governors of the AfDB and the 48th Annual Meeting of the Board of Governors of the African Development Fund. The meetings will explore ways to ensure greater resilience to climate change and achieve an equitable energy transition, while helping countries on the continent meet their global commitments and adapt to climate change. To this end, African countries will be encouraged to adopt a number of measures, including the development of climate-resilient infrastructure (bridges and roads). The AfDB's annual meetings, which run until 26 May, will be an opportunity to review the mechanisms to be used to further encourage private investors to engage in green projects, especially since 80% of climate investments in Africa in 2020 (estimated at $29.5 billion) will come from the public sector, while the private sector's contribution is estimated at only 14% of these funds. Globally, the private sector has mobilised 49% of climate investments, amounting to about $310 billion. The AfDB expects the African continent's GDP to decline by 12% in 2030 if private climate investment is not expanded, compared to a loss of about 1% of GDP in the United States and other industrialised countries. The Bank estimates that the low contribution of the private sector to climate investment would also lead to the continent being burdened with an annual deficit of more than US$127 billion by 2030. The AfDB also stressed the need to support governments' efforts to reduce the temperature rise by 1.5 degrees Celsius by 2100 and to protect the continent's countries, most of which are among the most vulnerable to the impacts of climate change in the world. It is worth noting that the AfDB President will hold a high-level meeting with all central bank governors on the changing international financial architecture and its impact on the vital role of multilateral development institutions, including the AfDB. English, Samir Ben Romdhane

Source: Agence Tunis Afrique Presse