ABIDJAN, Ivory Coast – The Canada-African Development Bank Climate Fund (CACF), dedicated to promoting climate change projects with a gender-affirmative focus in Africa, has greenlit $36.3 million to advance climate adaptation initiatives on the continent.Thank you for reading this post, don't forget to subscribe!
This funding takes the form of concessional loans granted to private sector enterprises. It includes $18.3 million earmarked for the refurbishment and expansion of Benin’s Port Autonome de Cotonou, and an additional $18 million to support the construction of three seawater desalination plants as part of the Green Investment Program led by the OCP Group.
In Benin, CACF’s support will facilitate the development of climate-resilient measures and best practices within port operations to counteract impending climate change risks related to rising temperatures, sea levels, and droughts. Importantly, this project will generate employment opportunities for women. CACF’s concessional loan complements a EUR 55 million loan from the African Development Bank granted in July 2023.
Meanwhile, in Morocco, the project aims to produce and distribute 105 million cubic meters of drinkable water to approximately 1.5 million people in Safi and El Jadida, along the Atlantic coast. This initiative comes at a critical juncture for Morocco, facing severe water scarcity and ranking 27th among countries most vulnerable to chronic water shortages, as per the World Resource Institute. Women and young girls stand to gain from enhanced time management and better health. The African Development Bank is co-financing this project with $150 million.
CACF is a collaborative effort between the African Development Bank and Canada, with the primary objective of extending concessional loans to eligible climate change projects across Africa. To date, CACF has sanctioned $20.4 million for two other climate-change related projects in the public sector. The first is a $5.4 million concessional loan to bolster agricultural, silvicultural, and pastoral production and value chains in Senegal, along with the dissemination of innovative adaptation practices. The second project allocates $15 million to Nigeria, supporting socio-economic development and poverty reduction in Umuahia and Aba by enhancing climate-resilient urban infrastructure systems.
Gareth Phillips, Manager of the Climate and Environment Finance Division of the African Development Bank, emphasized the need to address the adaptation requirements of the most vulnerable communities and infrastructure in Africa in the face of escalating climate change impacts. CACF is recognized as a highly efficient and effective facility for delivering widespread climate adaptation benefits, thanks to the valuable support from the Canadian government.