The European Investment Bank (EIB) provided over EUR 5 billion in fresh funding to support over EUR 12 billion of transformational private and public investment across Africa in 2020.
Some of the investments include launching new targeted financial initiatives in collaboration with African lenders and financial institutions to aid the recovery of businesses from COVID-19 challenges, speeding up climate finance, bettering access to finance by female-led businesses, and improving financing for rural smallholders.
EIB announced this in its The Finance in Africa 2021 report, which was unveiled at the weekend, during a webinar.
The report surveyed 78 leading lenders and financing institutions, which have operations across sub-Saharan Africa (SSA), examined the impact of the COVID-19 health crisis on banking and business lending, investigated how Africa’s financial sector is leveraging the digital revolution, and detailed the challenges and opportunities of green finance for lenders.
In the report, EIB indicated that lenders in Africa recognize climate change risks and climate finance opportunities.
According to the bank, 54% of surveyed lenders were already examining climate as a strategic issue while more than 40 percent have staff working on climate-related opportunities. Other financial institutions, including microfinance institutions, private capital, and insurance firms are also filling market gaps in green finance.
EIB Vice President, Thomas Östros, said: “Africa’s banks are crucial for ensuring access to finance, which is essential for private sector growth and climate action.”
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