Mozambique to access AfDB’s Climate Action Window – Deputy FinMin in Egypt

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Mozambique to access AfDB’s Climate Action Window – Deputy FinMin in Egypt

7:18 CAT | 26 May 2023

FILE - For illustration purposes only. [File photo: Twitter/@AfDB_Group]

Mozambique will be able to access support from the Climate Action Window – an AfDB Group instrument with US$8.9 billion for the 2023 to 2025 period – as soon as it is structured, the deputy minister of economy and finance said on Friday.

Amílcar Tivane said that the country had managed to “secure funding for energy areas, particularly for mitigation and adaptation in the face of climate change,” as a result of meetings he had with the vice presidency of the African Development Bank (AfDB) for this area.

“Mozambique can submit concrete projects as soon as the design of this new instrument is ready,” the Mozambican deputy minister said in a brief interview with Lusa, on the sidelines of the annual meetings of the AfDB, which he attended this week in the Egyptian city of Sharm el Sheikh.

“We had a very useful discussion, we made our voice heard to look at the issues of climate finance, and not only the issues associated to carbon credits, to guarantees for projects with a green growth component,” Tivane said.

This is because, stressed the deputy minister, “having resources is not enough”, as it is necessary to prepare the projects well, and he noted the bank’s “very strong commitment on associated matters”.

“The quality of the projects makes a big difference,” Tivane stressed, noting that 10% of the total amount allocated for the 2023 to 2025 period is for technical assistance to projects.

To boost climate finance and promote Africa’s resilient development in the face of the effects of climate change, in December 2022 the AfDB Fund and its partners created the Climate Action Window for low-income countries.

The African Development Fund and its partners have committed a total package of $ 8.9 billion to its 2023 to 2025 financing cycle. Of this package, which represents a 14.24% increase over the previous replenishment of $7.4 billion, $429 million is earmarked as seed money for the new Climate Action Window to reach up to $13 billion from traditional and non-traditional partners, as well as state and non-state, including the private sector.

Mozambique is a country prone to adverse climatic shocks, and over the last five years it has been particularly plagued by a series of cyclones that “had terrible repercussions in terms of loss of human life, destruction of socio-economic infrastructures that were made with great sacrifice,” recalled the minister.

Therefore, his participation in the annual meetings of the AfDB Group, which ends today in Egypt, focused particularly on this theme and on financial and technical support in the preferred areas for development, such as structuring – transport, ports, roads – energy, agriculture and water supply.

Source: Lusa