Some civil society organisations in Africa have called on the African Export-Import Bank (Afreximbank) to invest in clean energy projects that focus on regional integration of the power sector.
Development Diaries reports that the call was made by Uganda’s Environment Governance Institute, Togo’s Friends of the Earth, and Ghana’s Alliance for Empowering Rural Communities and AbibiNsroma Foundation.
According to the CSOs, they are concerned that Afrieximbank’s ongoing support for fossil fuel projects in Africa not only contributes to climate change but also negative impact on local communities and ecosystems.
Many rural communities in Africa are already facing the devastating consequences of droughts, floods, and extreme weather events as the continent remains one of the most vulnerable regions to the impacts of climate change.
East Africa’s worst drought in at least four decades, which has displaced more than a million and pushed millions more to the brink of food insecurity, was triggered by severe climate change.
‘Continued investment in fossil fuel projects only exacerbates these challenges and undermines our efforts to achieve the 1.5 degrees climate target and the Sustainable Development Goals’, the CSOs said in a statement.
According to Afreximbank’s 2021 Annual Report, between 2020 and 2021, funds for the oil and gas sector rose from $2.41 billion to $2.45 billion and accounted for 16.4 percent of total approvals.
This contravenes Article 2.1(c) of the Paris Agreement, which encourages companies to finance projects consistent with a pathway towards low greenhouse gas (GHG) emissions and climate-resilient developments.
‘If the investment initially intended for these fossil fuel projects were redirected to solar PV, it could cover more than a quarter of the cost of all Africa’s solar PV capacity additions to 2025′, they added.
‘It is worth stating that the fossil fuel projects Afreximbank financed in Nigeria, Mozambique and East Africa have had significant socioeconomic impacts including land grabbing, displacement, loss of livelihoods, increased poverty, and gender-related issues’.
The CSOs urged Afrieximbank to do more in aligning the bank’s investment policies with the goals of the Paris Agreement.
Photo source: CIFOR