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AfDB steps up its response to climate change – African Markets

The Board of Directors of the African Development Bank (AfDB) Group has decided to amend the Multi-Donor Agreement of the African Climate Change Fund (ACFC), in order to broaden its scope and increase its responsiveness.

“The changes to the Africa Climate Change Fund, approved by the Governing Board, will enable the AfDB to support the growing ambitions of the parties as expressed in the Glasgow Climate Pact.”

“As well as the ongoing negotiations, within the framework of the Paris Agreement and the conventions on biological diversity and the fight against desertification”.

Said, Al Hamndou Dorsouma, Acting Director of the Climate Change and Green Growth Department of the African Development Bank, following the Board meeting.

Amendments to the CCAF

The amendments broaden and strengthen the objectives of the Fund as well as its beneficiaries. In addition to African governments, non-governmental organizations, local communities, financial funds, research institutes and regional institutions, as well as private companies, are now eligible for grants from the Fund.

Grants can be awarded to private sector operators when the projects are exemplary or when, for example, the activities are innovative, semi-commercial and require significant development work.

Other relevant focus areas include climate finance preparedness, climate change mainstreaming and green growth.

As well as the preparation and financing of adaptation and mitigation projects and programs within the framework of NDCs, capacity building and institutional development, the preparation of low-carbon and climate-resilient strategies and policies, and analytical work related to climate finance and green growth.

The Fund may also be used for initiatives arising from commitments under the Paris Agreement, the Glasgow Climate Pact or others resulting from the United Nations Framework Convention on Climate Change.

Including the United Nations Convention to Combat Desertification and the United Nations Convention on Biological Diversity, in relation to climate change adaptation and mitigation.

The Fund’s governance structure, including grant approval thresholds, has changed.

All these changes will enable the Fund to support the Bank in the implementation of its policy, strategy and action plan on climate change and green growth, reflecting the increased attention paid to climate finance and commitments made at COP26.


The African Climate Change Fund was established in April 2014 to help African countries build resilience to the negative impacts of climate change and transition to sustainable low-carbon growth.

Originally designed as a bilateral trust fund with an initial untied contribution of €4,725 million from Germany for an initial period of three years, it was to be converted into a multi-donor trust fund once at least one new donor would be willing to join.

In May 2017, the Fund was converted into a multi-donor trust fund for a period of 5 years, which expired in May 2022 before being renewed for another 5 years until May 2027, with contributions from Italy, Flanders (Belgium), Canada, Quebec and the Global Center for Adaptation (GCA).

Hosted and managed by the Bank, the Fund complements the Bank’s other trust funds. Its scope is designed to be broad enough to cover various types of activities related to low-carbon and climate-resilient growth.


In its seven years of existence, the Africa Climate Change Fund has mobilized $26 million from its donors and implemented 26 projects, of which seven have been completed and one has been cancelled.

The Fund has launched three calls for proposals and supported projects in at least 16 African countries: Benin, Cape Verde, Cameroon, Côte d’Ivoire, Eswatini, Kenya, Lesotho, Mali, Mozambique, Namibia, Rwanda, São Tomé and Príncipe , Senegal, Sudan , Tanzania and Uganda.

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Picture: © 2021 Elmar Gubisch