Absa Bank has committed to expanding its lending to green projects and dedicating a minimum of 10 percent of its capital to climate finance by 2025.
The bank is looking to support initiatives in green energy, green buildings, and sustainable agribusiness for Africa’s climate transition.
Pipeline of Potential Projects
Having been actively involved in Kenya’s first green bond project with Acorn Holdings Africa, Absa Bank is now evaluating a pipeline of potential projects that align with its sustainability goals.
It says it will collaborate with experts from the International Finance Corporation (IFC), to strategically map out capital financing portfolios to facilitate investments in renewable and clean energy projects that adhere to global standards.
During a recent side event at the Africa Development Bank (AfDB), Absa Bank’s Chief Finance Officer, Mr Yusuf Omari unpacked how financial institutions can harness Africa’s resources to support climate finance and transform our tomorrow.
Absa Bank has already invested Ksh.60 billion across sustainable investment, financing, and operational activities to drive climate transition and inclusive growth.
Also Read:Â AfDB, UK Inject $2 Billion into KPLC for Climate Change Action
The side event at AfDB focused on exploring how financial institutions can leverage Africa’s resources to anchor climate finance and shape a more sustainable tomorrow.
$213.4 Billion Financing Gap
Discussions centered around the crucial role of local finance institutions, pension funds, and development partners in directing resources towards facilitating companies’ transition to clean energy solutions.
Africa’s potential as a trailblazer in renewable energy solutions is highlighted by the abundance of solar, wind, hydro, biomass, and geothermal resources across the continent.
A study by UNEP in 2023 projected that Africa could see a significant increase in Gross Domestic Product (GDP) by leveraging its green business opportunities and transitioning towards clean energy sources.
Despite a $213.4 billion financing gap in climate financing, Africa presents a unique opportunity for innovative investors and finance sector players to make a tangible impact.
