African Export-Import Bank (Afreximbank) has pledged its commitment to support Africa in bridging its climate finance deficit currently worth $250 billion.

Denys Denya, Afreximbank’s Executive Vice President of finance, administration & Banking Services, made the assurance while speaking at the ongoing climate change (COP27) conference in Sharm El Sheikh, Egypt.

According to Denya, financial institutions, with Afreximbank at the forefront, need to step in and bridge the finance gaps. He further noted that given the right support and commitment, Africa can in addition achieve the vision and goals of the African Continental Free Trade Area (AfCFTA), helping the continent’s population grasp the opportunities within it, and ensuring it plays a leading role in revitalising its climate adaptation and mitigation initiatives.

Speaking further, Mr Denya called on African financial institutions to offer both financial and technical support which would be targeted at curbing Africa’s greenhouse gas emissions and ensuring that the achievement of the goals under the AfCFTA is not neglected.

On his part, Elias Kagumya, the bank’s chief risk officer, stressed the necessity for African countries to utilize the continent’s vast mineral resources to finance adaptation, loss and damage and build resilience on the continent.

Kagumya also encouraged Africans to adopt clean energy technology, noting that the continent is blessed with a wide variety of minerals essential for the clean energy transition.

According to industry reports, Africa continues to be the least emitting continent, but the continent continues to battle unprecedented forest fires, droughts, soil erosion, landslides, cyclones, and floods, which are expected to get worse as temperatures rise.

Analysts argue that ensuring that the AfCFTA does consider a green transition is a huge mandate for African governments and stakeholders as the implementation of the AfCFTA forms part of the larger solution to Africa’s climate change issues.

They consider critical financing an important step towards achieving a solution to the continent’s climate disaster, adding that AfCFTA can help in shaping the transition of African economies to green growth, climate adaptation and mitigation.

The bank has supported the continent several times. Recently, the African Export-Import Bank (Afreximbank) has renewed its technical and financial support to the Coalition for Dialogue on Africa (CoDA). After two years of successful collaboration, the two institutions have embarked on a new three-year partnership.

Afreximbank is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. Afreximbank deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa.