The African Export-Import Bank (Afreximbank) entered into a cooperation with Aenergy to develop a low carbon sustainable economy and a climate finance strategy to support projects and national initiatives in the sector across Africa.
The cooperation agreement, signed on the sidelines of the Afreximbank Annual Meetings and 25th Anniversary celebrations on Saturday, will support trade and promote low carbon technologies by attracting financing and specialized resources for energy generation, mainly for the renewable and transportation sectors; to develop investment funds, such as the African Innovation Climate Fund and enable Afreximbank to be the first multilateral bank in Africa to issue green bonds in partnership with top tier stock exchange platforms.
Speaking during the signing ceremony, Amr Kamel, Afreximbank Executive Vice President for Business Development and Corporate Banking, said that the facility was a huge opportunity for climate finance for African countries.
“It will create value from environmental assets and promote emissions of green bonds to support African governments and African companies in their pursuit of infrastructure investments and will sustain their social and economic development”.
Divaldo Rezende, Global Head of Climate and Social Finance at Aenergy, said the agreement was an opportunity pipeline that may enable it to issue at least $850 million in green bonds in the next five years, given its experience in the space and Afreximbank’s capacity to leverage African participation in innovative financial mechanisms.”
In 2017, multilateral development banks made commitments totaling $35.5 billion for climate finance, with Africa receiving only $2.3 billion, or less than one per cent. In the context of fighting climate change and achieving the Sustainable Development Goals, green bonds are considered strategic to the development of a low carbon economy in Africa.