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The 2023 African Economic Outlook has indicated that Zambia’s overall need for climate finance is an estimated US$50 billion through 2030.
The outlook, produced by the African Development Bank (Afdb) is anchored on the theme: “Mobilising Private Sector Financing for Climate and Green Growth in Africa.”
According to the outlook released this month with specific country focus, Zambia’s overall need for climate finance was an estimated US$50 billion through 2030.
The outlook stated that this was expected to be mobilised predominantly through new climate finance mechanisms such as the Global Climate Fund and other climate-related bilateral, multilateral, and domestic financing.
It indicated that this included the private sector, which already provided climate finance through corporate social responsibility, in addition to investment with returns.
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“A good example of private financing is the US$53 million Green Outcomes Fund that was recently established by Zambia National Commercial Bank, Kukula Capital, and the World-Wide Fund for Nature–Zambia.
“The Development Bank of Zambia also attained an accreditation by the Green Climate Fund to receive and submit proposals on behalf of developers of green projects,” the outlook cited.
It acknowledged that weather-indexed insurance instruments in Zambia were already being used, as were infant-stage green bond initiatives.
The outlook, however, pointed out that carbon-market financing mechanisms remained underexploited in Zambia, but had great potential.
“Zambia is endowed with many natural resources (land, water, forest, and wildlife).
“The mining sector accounts for 12 percent of Gross Domestic Product, and the forest sector accounts for five to seven percent. More than 300,000 people make their living directly or indirectly from fishing,” it stated.
The outlook underscores the urgency to fast-track climate action and green transitions to drive the continent’s inclusive and sustainable development.
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