Canada, AfDB sign $104.8m climate fund pact

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By: Oluwatosin Iyun

In a bid to provide concessional loans to climate change-related projects with a strong gender-responsive component, Canadian Government and the African Development Bank (AfDB) have signed a $104.8million agreement.

The agreement will formalise the Canada–African Development Bank Climate Fund (CACF).

In a statement, the AfDB on Tuesday, said the fund would be capitalised through a combination of 122.9 million Canadian dollars ($104.8 million) repayable contribution plus 10 million Canadian dollars grant contribution.

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The fund which will be administered by the Bank, will also provide concessional loans for both sovereign and non-sovereign operations as well as complementary technical assistance.

Speaking at a virtual signing ceremony,held on March 17 on the sidelines of the Canada-Africa Clean Growth Symposium, Canada’s Minister of International Development Mr Karina Gould said the investment recognised:“the critical role that women need to play in climate action.And supports their efforts to mitigate and adapt to the effects of climate change.

“Climate change is one of the most important challenges of our time.

“And, although we are all affected by it, we in Canada know that not everyone is affected equally, that means that vulnerable and marginalised people are bearing the brunt of this crisis.”

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In his remarks, President of the AfDB, Dr Akinwumi Adesina said: “In building back Africa, climate resilience is very important.“

He said:These resources that you are making available, it’s very unique, in helping us with adaptation.

“First, it is long-term financing. It will provide long-term capital to the private sector and to the public sector. It also provides it at affordable levels for countries.

“What I like most about it is that it looks at multi-sectoral use of this financing, all these things are very important to support Africa in climate adaptation and mitigation.”

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