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African Investors Join the Race to Raise Funds Needed to Pay for Climate Adaptation Projects

African countries collectively need to raise around $2.8 trillion by 2030 to meet climate action goals, according to the Climate Policy Initiative research body. Many African governments cannot afford to pay for green initiatives and the ability of private investors to secure funding has been restricted by perceived risks associated with the continent and green projects more generally. Some see a solution in blended finance, an approach through which public sources of money such as grants from development finance institutions or philanthropic organizations, are used to reduce the risk for private investors. The African Development Bank is partnering with African banks to fund projects aimed at addressing the impact of climate change through its African Green Bank Initiative. The scheme, which has access to a $1.5 billion fund and technical support from European asset management firm Amundi, was launched in May.