The United Nations Development Program (UNDP) has announced the launch of its Africa Green Business and Financing Report on environmental finance in the continent. The report provides a market analysis for financing green business in Africa while examining the continent’s legislative and regulatory environment in the sector.
Announced by Director of the UNDP Regional Services Center for Africa Matthias Naab on May 22, the report offers insight into macro-economic and development trends in Africa, key environmental challenges and barriers to entry for financiers.
“This flagship report offers an overview of green business and finance across Africa. It references a wide range of activities, driving innovation and growth to stimulate development and finance that promotes real and meaningful change,” stated Naab.
The report highlights Africa’s potential to boost private sector growth, which can support its green agenda and drive socioeconomic development. It suggests that policymakers should create a supportive environment for investment by focusing on research, innovation and education. Additionally, it emphasizes the importance of collaboration between governments, businesses and local communities.
The report notes the unique challenges faced by many African economies, including limited investments, institutional capacity, high transaction costs, scalability and access to affordable electricity. Therefore, it recommends the development of energy-efficient solutions and innovative financing mechanisms by policymakers on the continent.
As part of the UNDP’s green financing strategy, the organization will prepare Country Action Roadmaps over the next six months. The roadmaps will be prepared with assistance from UNDP offices in Angola, Malawi and Togo to create a set of recommendations with the potential to unlock financing for green businesses.
The report addresses critical challenges and opportunities in climate change and economic development across Africa and falls in line with goal 13 – climate action – of the UN’s Sustainable Development Goals.
