Climate change is putting immense pressure on Africa’s water and energy systems, worsening poverty levels and contributing to declining sovereign credit ratings, the African Development Bank (AfDB) has warned. The continent’s most disadvantaged populations are bearing the brunt of these escalating challenges.
“Africa is at the epicenter of the climate crisis, home to nine of the world’s ten most climate-vulnerable nations,” AfDB President Dr. Akinwumi Adesina said during a high-level climate finance roundtable held alongside this year’s IMF and World Bank Spring Meetings.
Yet, despite being so heavily impacted, Africa receives just a fraction of the funding it needs to respond. “The continent is only getting about $30 billion annually for climate adaptation, while actual needs stand at $277 billion per year. That’s a staggering shortfall,” Adesina added.
To help bridge this gap, the AfDB is intensifying its climate finance efforts. In 2023, climate-focused initiatives were integrated into 97% of the Bank’s operations, with a total of $5.8 billion dedicated to climate-related projects—55% of the Bank’s total approvals. Of this, $2.7 billion went toward mitigation and $3.1 billion toward adaptation, according to the institution’s latest investor report.
“We set a benchmark to channel 40% of our overall financing into climate action. Not only have we met that goal, but we’ve also surpassed it for three years in a row,” said Adesina.
Launch of the Climate Action Window
In a major move to boost climate resilience in low-income African countries, the AfDB has launched the Climate Action Window under the 16th replenishment of the African Development Fund. Touted as a pioneering initiative among multilateral development banks, the fund has secured an initial $429 million in contributions from development partners including Germany, the United Kingdom, The Netherlands, and Switzerland. The Bank aims to grow this figure to $13 billion.
This new funding mechanism is tailored to support vulnerable nations through adaptation, mitigation, and technical assistance. Demand has already far outstripped supply: the first call for adaptation project proposals attracted $4 billion in submissions—ten times the size of the available funding.
The Climate Action Window is expected to deliver tangible outcomes:
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20 million farmers equipped with climate-resilient farming techniques
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18 million people gaining access to sustainable water, sanitation, and health infrastructure
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9.5 million individuals benefiting from clean energy access
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1 million hectares of degraded land restored
Scaling the African Adaptation Acceleration Programme
The Bank is also championing the African Adaptation Acceleration Programme (AAAP), its flagship initiative with the Global Center on Adaptation. Together, they are mobilizing $25 billion for climate resilience, making AAAP the largest adaptation-focused program globally.
Africa’s Strategic Role in the Green Economy
AfDB underscores that Africa holds some of the most promising opportunities for greenfield investment in climate-related sectors. The continent’s solar potential and abundance of critical minerals uniquely position it to lead in the global clean energy transition. Africa boasts 85% of global manganese reserves, 80% of platinum and chromium, nearly half of all cobalt, and over a fifth of the world’s graphite—all vital to electric vehicle batteries and green tech industries.
These resources, if properly harnessed, could not only empower Africa’s own climate resilience but also make the continent a cornerstone in the global shift toward sustainable development.
