- The ACG financing will support sustainability in Africa initiatives such as energy security and transition.
- It will also support regional integration and connectivity, trade finance and facilitation, gender and youth initiatives.
- ACG has been a long-standing supporter of African countries and has invested over $220 billion in the region.
Stepping up their support for African partner countries ahead of the COP28 climate change conference, the Arab Coordination Group (ACG) has announced it will allocate up to $50 billion to help build resilient infrastructure and inclusive societies in Africa.
COP28, held from 30 November to 12 December 2023 in Dubai, signifies a crucial moment in the global endeavor to tackle climate change. Notably, it will witness the completion of the initial worldwide assessment of the Paris Agreement, providing the international community a pivotal chance to adjust course and enhance collective commitment to restrict warming to 1.5°C.
The announcement of $50 billion in funding for sustainability in Africa was made by the Islamic Development Bank President, Dr. Muhammad Al Jasser, at the Arab-Africa & Saudi-Africa Summits’ Economic Conference held in Riyadh, Kingdom of Saudi Arabia.
ACG scaling up funding sustainability in Africa
Many countries in Africa are particularly vulnerable to climate change. This makes strengthening climate resilience and adaptation an urgent priority. In a joint communiqué the group of ten development institutions states: “Recognizing that the link between sustainable development and climate financing is cross-cutting and complex, the ACG reaffirms its commitment to scaling up financial assistance for climate change in line with the Paris Climate Agreement and to helping bridge investment gaps in energy access, including low-carbon energy sources, climate mitigation, adaptation and resilience, as well as food security.”
The ACG financing will support energy security and transition, regional integration and connectivity, trade finance and facilitation, gender and youth initiatives, enhanced support for fragile states, enhanced development effectiveness, private sector financing, food security, and poverty and unemployment.
Energy Security in Africa – Overview
Currently, more than 600 million Africans do not have access to electricity. The Sustainable Development Goal 7 tracking report indicates that Africa is not on track to meet the SDG7 targets. To fulfill its energy and climate objectives, Africa requires an annual investment of $190 billion between 2026 and 2030, with two-thirds of this funding directed toward clean energy sustainability, as stated by the International Energy Agency (IEA).
In response, the World Bank, IEA, and other institutions urge developed economies to increase support for developing the energy and renewables sector in developing economies, including Africa.
“We acknowledge the pressing need to address these challenges through timely and coordinated actions,” the ACG states.
On behalf of the ACG, Dr. Muhammad Al Jasser, President of the Islamic Development Bank, said: “Our conviction in the promise of Africa, its dynamic societies, and its spirited youth is unwavering. Nevertheless, we are acutely aware of the development challenges the continent faces – the repercussions of the recent global pandemic, the challenges of food security, and the escalating climate crisis. We are committed to working hand-in-hand with African nations, regional entities, civil society groups, the private sector, and fellow development institutions.”
ACG’s coordinated response to development finance
The group has long supported African partner countries and invested over $220 billion. “We reaffirm our commitment to supporting the sustainable development of countries in Africa,” the statement adds.
The ACG is a strategic alliance that provides a coordinated response to development finance, including sustainability. Current members are the Abu Dhabi Fund for Development, the Arab Bank for Economic Development in Africa, the Arab Fund for Economic and Social Development, the Arab Gulf Programme for Development, the Arab Monetary Fund, the Islamic Development Bank, the Kuwait Fund for Arab Economic Development, the OPEC Fund for International Development, the Qatar Fund for Development and the Saudi Fund for Development.