(Ecofin Agency) – According to the AfDB, Africa receives $30 billion per year for adaptation to climate change, while its needs are estimated at $277 billion annually. This creates a significant funding gap.
Proparco, the branch of the French Development Agency responsible for financing the private sector in developing countries, announced, on Monday December 16, 2024, an investment of $5 million in the climate impact venture capital fund, Equator Africa, via the FISEA+ system. This is a facility created to support very small businesses in Africa.
According to Proparco, this investment will generate between 40% and 60% climate co-benefits and should make it possible to support climate solutions in the energy, agriculture and mobility sectors, in a context marked by a climate investment gap.
According to estimates from the Climate Policy Initiative, “2,800 billion dollars, between 2020 and 2030, will be necessary for Africa to achieve its objectives in the fight against global warming”.
“Through this investment, we want to support innovative companies that respond to urgent climate challenges in sub-Saharan Africa. Equator’s approach reflects our commitment to promoting sustainable development and climate resilience in the region”declared Fabrice Perez, head of the Financial Institutions and Innovation division at Proparco. And added: “we firmly believe that these companies are the bearers of a sustainable future, strengthening both the economic solidity and the environmental resilience of Africa”.
The financing is part of Proparco’s strategy to expand access to economic opportunities and invest in climate initiatives, in line with its 2023-2027 strategy.
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