Africa cannot rely on public budgets alone to finance climate goals – Nyarko Ampem
Deputy Finance Minister Thomas Nyarko Ampem has cautioned that African countries cannot depend solely on government budgets to finance their climate ambitions, given increasing pressure on public finances.
Speaking at the opening of the Green Climate Fund’s Regional Dialogue for West and Central Africa in Accra, Mr Nyarko Ampem said governments were already under significant pressure to finance education, healthcare, infrastructure and social protection while responding to the growing costs of climate change.
He said public and concessional financing should instead be deployed strategically to reduce 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,” he stated.
According to the African Development Bank, Africa requires an estimated $2.7 trillion between 2020 and 2030 to meet its climate commitments.
Mr Nyarko Ampem said the challenge therefore goes beyond mobilising climate finance to ensuring that public resources are used to unlock significantly larger volumes of private investment.
Ghana currently has 13 projects in its Green Climate Fund portfolio, with approximately $209 million in GCF financing and an additional $5.7 million in approved readiness support.
GCF Director for the Africa Region, Catherine Koffman, said the Fund has so far committed about $20 billion towards its $50 billion target for 2030, representing approximately 40 percent of the overall target.
“We want to achieve 50 billion by 2030. At the moment we are at $20 billion at GCF, and 40% of that goes to the Africa region, which is about $7.6 billion. And for Western Central Africa, which is what this dialogue is about, it’s about $2.9 billion,” she said.
The GCF has committed approximately $2.9 billion to 80 projects across West and Central Africa, according to the Fund.
The four-day regional dialogue brings together governments, financial institutions and private-sector partners from 25 countries to explore ways of expanding access to climate finance.
The meeting comes as the Green Climate Fund begins its third replenishment process and seeks to strengthen its regional presence across Africa.
