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KIVIA ANALYSIS

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Climate: Development banks have increased their financing to 163 billion USD in 2025

Published on October 8, 20263 min

Key takeaways

  • Rarely does a storm announce its arrival.
  • The 'super El Niño', however, took the trouble to warn us.
  • This episode of exceptional Pacific warming, which disrupts rainfall and droughts on a global scale, could cost the African economy up to 20 billion dollars, warns the climate lead at the African Development Bank (BAD).

Rarely does a storm announce its arrival. The 'super El Niño', however, took the trouble to warn us.

This episode of exceptional Pacific warming, which disrupts rainfall and droughts on a global scale, could cost the African economy up to 20 billion dollars, warns the climate lead at the African Development Bank (BAD). The shock comes at a time when many states are already buckling under the burden of their debt service.

Hence the watchword from Anthony Nyong, Director of Climate Change at the BAD: climate finance must produce tangible results. Climate finance refers to funds dedicated to reducing greenhouse gas emissions and adapting to their effects.

In 2025, multilateral development banks provided 163 billion dollars, an increase of 19%, of which 103 billion dollars (+21%) went to low- and middle-income countries. These are historic amounts, but they tell us nothing about their distribution across the continent.

From soil to kilowatt. The BAD cites several projects that give these figures tangible content.

Regarding solar energy, there is the 66 million dollar financing for the Dandara power plant in southern Egypt (500 megawatts, with 100 MWh of battery storage), for a total cost exceeding 290 million. The balance will be raised from a consortium of development finance institutions.

Next, 20 million dollars in repayable grants were allocated to 4 projects dedicated to green hydrogen in South Africa, Egypt, Morocco, and Namibia. This clean fuel is produced by water electrolysis using renewable electricity.

Regarding green mobility, 13,46 million dollars were granted by the Global Environment Facility to expand a mechanism that mobilizes private sector capital through blended finance. This combines concessional public funds with private capital to de-risk investments.

It also relies on credit enhancement, a guarantee that improves the borrower's creditworthiness. In the Zambezi Basin, a regional program of 130 million dollars has been implemented, bringing together 8 countries to focus on food security and ecosystem resilience.

Finally, the Seychelles are benefiting from a 34 million dollar loan to strengthen economic resilience and accelerate the green transition. Restoring land: an investment challenge.

At the COP17 on combating desertification held in Ulaanbaatar, the BAD advocated for more capital for degraded lands, particularly in fragile or conflict-ridden areas. The challenge is to convert 'land degradation neutrality'—which consists of offsetting each hectare lost with one hectare restored—into bankable investments.

The Great Green Wall, a vegetal belt designed to stem the advance of the desert, is entering its implementation phase until 2034. The diplomatic calendar will soon set the scale of commitments: the COP17 on biodiversity in Yerevan, from 19 to 30 October, then the COP31 on climate in Antalya, from 9 to 20 November.

Africa will come with a simple demand: that the billions announced be transformed into roads, electrical grids, and harvests. Published on 08/10/26 13:23.

Dr. Ange Ponou

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