By Staff Reporter
Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, on November 8th 2022, joined a Roundtable on ‘Innovative Finance for Climate and Development” at the COP27 World Leaders’ Summit.
In his remarks, Prof. Oramah stressed the urgent need for adequate funding in order to properly address climate issues in Africa, noting the large gap between actual needs and available funding.
“The Centre for Global Development suggests that the required financing could be in excess of 1 trillion US dollars annually. Nonetheless, the continent receives less than 28 billion US dollars of the required funds for climate adaptation and mitigation investments,” he pointed out.
Urging Africa to develop instruments and programmes that can facilitate resource mobilisation for climate change adaptation, Prof. Oramah highlighted the Liquidity and Sustainable Facility (LSF), developed by the United Nations Economic Commission for Africa in partnership with Afreximbank, as one such innovative instrument that can facilitate access by African economies to the global debt capital markets at reduced cost while incentivising the issuance of sustainable and green bonds.
“LSF creates the first-ever liquidity window for African sovereign bonds, with preference given to SDG bonds, thereby boosting their tradability, attracting more investors and shrinking yields. We expect LSF to make it easier for African countries to issue more green bonds and to raise market funding to meet urgent mitigation and adaptation needs with less adverse impact on debt sustainability,” said Afreximbank’s President.
Conceived and developed by the United Nations Economic Commission for Africa (UNECA) in partnership with Afreximbank, LSF creates the first-ever liquidity window for African sovereign bonds, with preference given to SDG bonds, thereby boosting their tradability, attracting more investors and shrinking yields.
During COP27, Professor Benedict Oramah and the Afreximbank delegation will participate in several official panel discussions and roundtables. They will also meet with leaders, CEOs, and financial institutions representatives from around the world to flag up Africa’s financial needs in terms of climate change adaptation and to speak out for a just energy transition for Africa.