Africa cannot rely on public budgets alone to finance climate ambitions - Deputy Finance Minister

Africa cannot depend solely on government budgets to finance its climate ambitions, warned Deputy Finance Minister Thomas Nyarko Ampem at the opening of the Green Climate Fund's (GCF) Regional Dialogue for West and Central Africa in Accra. Governments are already stretched funding education, healthcare, infrastructure, and social protection while contending with the escalating costs of climate change, Ampem said.

He emphasized that public and concessional funds should be utilized strategically to mitigate investment risks and attract private capital. "We cannot fund every climate investment from the public purse nor should we attempt to. The national budget cannot be the only engine pulling the climate finance train," Ampem asserted.

According to the African Development Bank, Africa requires approximately $2.7 trillion between 2020 and 2030 to fulfill its climate commitments. The challenge, therefore, is not only about securing climate finance but also leveraging public resources to unlock substantial volumes of private investment. Ghana presently has 13 projects in its GCF portfolio, receiving about $209 million in GCF financing, complemented by an additional $5.7 million in readiness support.

Catherine Koffman, GCF Director for the Africa Region, stated that the Fund has committed around $20 billion towards its $50 billion target for 2030, constituting roughly 40 percent of the target. She added, "We aim to achieve $50 billion by 2030. Currently, we are at $20 billion in the GCF, and 40% of that goes to the Africa region, which is approximately $7.6 billion. For West and Central Africa, which this dialogue addresses, it's about $2.9 billion."

The GCF has allocated about $2.9 billion across 80 projects in West and Central Africa, according to the Fund. The four-day regional dialogue convenes governments, financial institutions, and private-sector partners from 25 countries to deliberate on enhancing access to climate finance. This dialogue unfolds as the GCF embarks on its third replenishment process and strives to expand its regional footprint in Africa.