Financial Innovation for Climate Adaptation in Africa 2022

Morgan Richmond, Bella Tonkonogy, Rajashree Padmanabhi, Angela Ortega Pastor, Neil Chin, Chetan Hebbale GCA Editorial Committee Jamal Saghir, Ede Jorge Ijjasz-Vasquez

There is a pressing need to accelerate finance from all sources for climate adaptation in Africa over the coming decade. The Nationally Determined Contributions (NDCs) of 51 African countries cumulatively show a need for an estimated $579 billion in investment for adaptation through 2030. This compares to the $11.4 billion in tracked adaptation finance to Africa on average annually from 2019 to 2020. If this trend were to continue through 2030, cumulative adaptation finance through 2030 would be $125.4 billion—less than one quarter of the estimated needs stated in NDCs. The adaptation investment shortfall in Africa must be met by action across stakeholder groups. To increase the volume and efficacy of adaptation finance flows, the following shifts are critical:

  • Financial institutions must mainstream resilience into investments they are making.
  • Policymakers and other stakeholders must build the enabling environment for adaptation investment.
  • Financial innovation for adaptation must match country-level policy and market conditions.

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