Participants at the AfDB pavilion at the Second Africa Climate Summit in Addis Ababa, Ethiopia. Credit: Farai Shawn Matiashe/IPS
By Farai Shawn Matiashe
ADDIS ABABA, Sep 16 2025 – As increasingly frequent droughts and devastating floods are affecting agricultural productivity, leaving millions of people food insecure in Africa amid a lack of climate finance, the African Development Bank (AfDB) has committed USD 11 billion to support various climate-resilient and infrastructure projects in rural areas.
Climate change-induced humanitarian emergencies are materializing in every corner of the world. Often, more frequently than predicted. Over the past few years, many countries have been experiencing extreme weather events almost every month. Poor countries like those in Africa emerged as the worst affected, bearing the brunt of climate change.
Africa warmed faster than the rest of the world, according to a report released last year by the World Meteorological Organization (WMO). The Horn of Africa, as well as Southern and Northwest Africa, suffered from exceptional multi-year droughts recently, while other African countries reported significant casualties due to extreme precipitation leading to floods in 2023.
Targeting Climate Action Projects
James Kinyangi, coordinator of the Climate and Development Special Fund and the Climate Action Window at AfDB, said they are providing funding for various climate adaptation and mitigation projects across Africa.
“AfDB has several ways in which they are tackling climate challenges and integrating finance for climate action in its portfolio. Last year, we had total approvals for projects in African countries for about USD 11 billion,” he told IPS in an interview at the AfDB Pavilion during the Second Africa Climate Summit (ACS2) held in Addis Ababa, Ethiopia, from 8 to 10 September. The summit took place in anticipation of the United Nations Climate Conference (COP30), in Belém, Brazil, scheduled for November 2025.
“Out of that, close to half was mainstream climate finance. Of the nearly USD 5 billion that went to climate finance, nearly 65 percent was adaptation finance. The remaining was mitigation.”
Kinyangi said they have a mainstream of climate finance for climate action in their main portfolio, making sure that all of the lending of the bank responds to climate action.
“We also screen our projects. Now, nearly 100 percent of all new approvals of the bank are mainstream with climate action. They are climate-informed designs of projects,” he said.
Kinyangi, an AfDB early warning expert, says they also have various special funds and trust funds that respond to climate change.
“One that is visible is through our major constitutional lending window, the African Development Fund. We have created the Climate Action Window, which has mobilized a total of USD 500 million as climate finance,” he said. “That has now been programmed for 37 low-income African countries that benefit from the resources of the African Development Fund. We have about 41 projects that are adaptation and we have another 18 projects that are mitigation.”
The cost of climate adaptation in sub-Saharan Africa would be between USD 30 and 50 billion annually over the next decade, according to the WMO. This is a huge blow to a continent where 118 million extremely poor people have a daily income of less than USD 1.90 per day. If adequate climate funding is not secured in time, farmers in the rural areas will be poorer by 2030 as national budgets continue to be diverted.
AfDB’s investments in Africa cut across energy, agriculture, water resources and sanitation, forestry, climate information systems, and green projects seeking finance to help transform mitigation pathways. Kinyangi said several of these projects are designed to support rural communities, including early warning systems, climate-smart agriculture and clean cooking solutions.
In the Sahel region, AfDB is supporting a project called Farmer Managed Natural Regeneration (FMNR), a low-cost, sustainable approach where farmers protect and manage the natural growth of trees and shrubs on their agricultural lands, rather than planting new ones. The practice restores degraded soil and increases agricultural yields, improving food security.
As part of their climate-smart agricultural projects, AfDB is supporting 20 million farmers across Africa. Kinyangi said AfDB is supporting technologies like drought insurance for the management of risks associated with losses of livestock and crops due to drought. He said the result is a whole host of technologies they are financing in rural communities across Africa, supporting farmers with water harvesting and renewable energy.
In Zimbabwe, for instance, AfDB is working with the International Fund for Agricultural Development, a United Nations agency working to eliminate poverty and hunger in rural areas and the United Nations Children’s Fund (UNICEF) to support school feeding programs for children.
“This includes improving cooking equipment in schools and improving the delivery of vaccines and other medications through rural dispensaries by use of cold chains powered by solar, ” said Kinyangi. Across Africa, AfDB is revamping irrigation projects, changing from diesel-powered to solar-powered systems to reduce emissions.
Bridging the Financing Gap for Countries in Debt Distress
Several African countries that are exposed to extreme weather events like droughts and floods divert their national budgets to respond to these disasters. These are funds meant for the health and education sectors, which are diverted to support affected communities and rebuild destroyed infrastructure. To fill the financing gap, they turn to multinational lenders like the International Monetary Fund (IMF) and the World Bank, which leaves them in debt.
Efforts have been made in the past to restructure debt through the G20 Common Framework, which was created during the COVID-19 crisis in 2020 as a debt relief effort. But African leaders say it is slow and creditor-driven. Five years after it was established, only Ghana and Zambia have managed to restructure their debt under the G20 Common Framework.
Between 2010 and 2020, Africa’s external debt increased more than fivefold and accounted for almost 65% of Gross Domestic Product in 2023. Even though Africa’s average debt-to-GDP ratio is expected to decrease to 60% in 2025, the continent faces an escalating debt crisis, according to the African Union. Statistics from the IMF and World Bank’s Debt Sustainability Framework show that African countries in distress, or at high risk of debt distress, have risen from 9 in 2012 to 25 in 2024.
Kinyangi said the AfDB Climate Action Window was established to help countries in debt distress.
“For example, countries like Mozambique, Malawi and Zimbabwe are exposed to tropical cyclones in the Indian Ocean. So, they divert national resources to combat the negative impacts of tropical cyclones. That leaves them in a budget hole. Sometimes they have to borrow to leave that budget hole.”
Kinyangi said AfDB’s aspirations are to ensure that it channels more climate finance to vulnerable countries to cushion those countries against having to divert important national budgets to combat the impacts of climate change. He said climate finance is supposed to go directly to building resilience against the negative impacts of extreme weather events while preserving the national budget that is meant to create education systems and promote health and infrastructure.
The AfDB was among the African banks that have committed to mobilizing USD 100 billion to fund green industrial projects at the ACS2. While a copy of the final declaration from the three-day Addis Ababa Summit is yet to be released, African leaders set a new goal to raise USD 50 billion annually for climate solutions. In 2023, about USD 26 billion was mobilized at the ACS1 in Nairobi, Kenya, but it is not clear how much funding has been disbursed. The continent needs USD 1.3 trillion per year to finance its climate adaptation plans, according to the AU.
IPS UN Bureau Report