Africa cannot rely on government budgets alone to finance climate ambitions – Deputy Finance Minister

Deputy Finance Minister Thomas Nyarko Ampem has cautioned that Africa cannot solely depend on government budgets to achieve its climate goals. Speaking at the Green Climate Fund's Regional Dialogue for West and Central Africa in Accra, Mr. Ampem highlighted that governments are already burdened with competing demands for public funds, including education, healthcare, infrastructure, and social protection.

He emphasized that climate change is adding to the financial pressures faced by governments. Mr. Ampem argued that public and concessional financing should be strategically utilized to mitigate investment risks and attract private capital. He stressed that funding every climate investment from the public purse is not feasible and should not be the sole approach.

According to the African Development Bank, Africa requires approximately $2.7 trillion between 2020 and 2030 to meet its climate commitments. The challenge, therefore, lies not only in securing climate finance but also in leveraging public resources to unlock substantial private investment. Ghana, for instance, has 13 projects in its Green Climate Fund portfolio, with around $209 million in GCF financing and an additional $5.7 million in approved readiness support.

The Green Climate Fund's Director for the Africa Region, Catherine Koffman, stated that the Fund has committed about $20 billion towards its $50 billion target for 2030, accounting for roughly 40 percent of the target. Ms. Koffman revealed that the GCF aims to achieve a $50 billion financing target by 2030, with a significant portion expected to support climate action in Africa, particularly in the West and Central Africa region.

The four-day regional dialogue, attended by representatives from 25 countries, brings together governments, financial institutions, and private-sector partners to explore methods of expanding access to climate finance. As the Green Climate Fund begins its third replenishment process and expands its regional presence in Africa, the dialogue presents an opportunity for stakeholders to discuss financing requirements and strategies for mobilizing greater resources for climate investments across West and Central Africa.