The realization of a climate-resilient future in Africa will greatly depend on harnessing capital from philanthropic organizations to finance green projects, says a report launched in Nairobi on Thursday.
According to the report titled “Introductory Political Economy Analysis of the Climate Philanthropy Space,” compiled by Africa Practice and ClimateWorks Foundation, the continent should leverage resources from foundations to bridge a huge climate financing gap.
The report that covered six African countries including Ethiopia, Ghana, Kenya, Nigeria, Senegal and South Africa noted that private donors were keen to finance the continent’s green transition subject to regulatory incentives.
The report analyzed the political, economic, policy and regulatory environment in the six African countries to help inform future financial support from not-for-profit groups to hasten the continent’s low carbon development.
According to the report, Africa has the potential for attracting green financing from philanthropies if governments prioritized policy and legislative reforms, transparency and political stability.
The report singles out Nigeria and South Africa respectively as capable of attracting the lion’s share of philanthropic green financing if they enacted friendly policies and regulations.
In addition, the report says that Nigeria and South Africa should hasten the transition from fossil fuels to cleaner forms of energy in order to reduce carbon emissions and climate-proof their economies.
The report notes that Kenya has been a leading recipient of philanthropic green financing thanks to friendly regulations while political stability in Ghana and Senegal, environmental stewardship in Ethiopia, have stimulated donor investments in carbon-cutting programs.
Tewodros Sile, associate director from Africa Practice, admitted that the continent was reeling from the climate crisis adding that targeted investments from philanthropies will boost the resilience of local communities.
“Whilst Africa remains at the forefront of the climate crisis and its effects, this is equally matched by the opportunities to identify, finance and execute a range of catalytic climate adaptation solutions,” said Sile. Enditem
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