GCF unlocks more than US$4bn to boost climate investments in Africa

The Green Climate Fund (GCF) has unlocked over US$4 billion in additional resources for climate investments, with Africa set to receive around 40 percent of this funding. Catherine Koffman, the Fund's Regional Director for Africa, revealed this during a discussion at the GCF Regional Dialogue for West and Central Africa held in Accra.

Koffman emphasized that while Africa had received 40 percent of the GCF's global funding of US$20 billion over the past decade, with US$7.6 billion going to the continent, more financing was needed given the scale of climate challenges. She affirmed that Africa was set to receive a further 40 percent of the new US$4 billion, potentially boosting climate action on the continent.

However, Koffman highlighted that the GCF's funding was intended to be catalytic, aiming to reduce risks and attract additional private sector investment. The GCF supports Africa by investing in readiness and project preparation, providing about US$740 million globally, with US$250 million specifically for Africa. Countries like Ghana, Mali, Burkina Faso, and Nigeria have received readiness grants, with the amounts varying based on individual country needs.

Koffman stressed that even a small readiness grant could unlock significant additional financing. The GCF is also decentralizing its operations in Africa, establishing regional offices in Abidjan and Nairobi to better understand local market conditions and reduce the time from project proposals to funding decisions. This move is part of broader reforms aimed at simplifying the GCF's processes and making them more responsive to the needs of African countries.