The UNESCO biosphere reserve of Príncipe island was the site of the first international conference dedicated to biodiversity financing hosted by the Government of São Tomé and Príncipe, the Regional Government of Príncipe, in partnership with the United Nations and the African Development Bank (www.AfDB.org).

Raising awareness of the challenges in mobilizing sustainable financing, the event held 14-15 March 2024, identified concrete mechanisms to generate additional financial flows anchored in biodiversity. It also  showcased solutions that Mozambique, Rwanda, Seychelles and Cape Verde have found to attract innovative environmental finance and blended finance investments to support terrestrial (green) and marine (blue) conservation activities.

Participants included high-level government representatives, the diplomatic corps representatives from Cap-Verde, Equatorial Guinee, Portugal and Brazil, civil society, financial institutions, private investors, international experts, and senior representatives of the African Development Bank and the United Nations.

The island country, home to many endemic flora and fauna, counts nearly 900 registered plant species, of which around 400 are endemic.

Hosting the event on the island provided an opportunity to learn about the efforts of the Regional Government of Príncipe to protect its biodiversity.  Field visits included the Abade Mangrove and the natural park of Príncipe, where biodiversity restoration and conservation are ongoing. The conference was a roadmap for sustainable blue and green financing for São Tomé and Príncipe and other small island developing states.

Opening the conference, Prime Minister Patrice Trovoada praised the African Development Bank and the United Nations for their support to its organization. “From a global point of view, without adequate financing, and restructuration and coordination of multilateral and innovative financing mechanisms, we will continue jeopardizing the biodiversity and all essential ecosystems required for our collective well-being,” Trovoada said.

Speaking on behalf of African Development Bank President Akinwumi Adesina, Pietro Toigo, Country Manager for São Tomé and Príncipe said, “Turning natural capital into financial flows that can be deployed for development is a key plank of a just climate settlement; the African Development Bank is committed to avail its financial expertise and capital to provide innovative solutions for nature-rich African countries like São Tomé and Príncipe.”

Minister of Finance, responsible for entrepreneurial development and the digital economy of Cabo Verde, Olavo Correia said, “It is fundamental to address climate change as an emergency, bringing scale and speed, and creating impact for people, in particular youth and women”.

Several African countries have experience with innovative financing vehicles — the Seychelles debt for nature swap and blue bond issuance, the impact investment and conservation funds of Mozambique and Rwanda, and the soon-to-be established São Tomé and Príncipe Fund for Biodiversity. The overarching message for mobilizing biodiversity financing from donors and private sector: African countries must have a coherent policy framework and governance environment to establish clearly dedicated and independent resource mobilization vehicles and to insist on good governance, accountability, commitment and transparency to ensure sustainable conservation activities.

The African Development Bank has set and achieved ambitious targets for climate finance with its 2018 commitment to invest at least 40% of its total lending program in climate-related activities, and at least half in adaptation. In 2023, 55% of its lending program was in climate finance of which 56% was invested in mitigation and 44% in adaptation. In 2023, the Bank lent $10.6 billion overall, of which $5.8 billion was climate finance.

During panel presentations, African Development Bank staff highlighted its increasing support in addressing climate action through the launch and operationalization of the Climate Action Window under the 16th replenishment of the African Development Fund, its various fiduciary funds, risk mitigation structures such as partial credit guarantees to de-risk capital market transactions against Sustainable Financing Frameworks, among other initiatives. Gareth Philips, Manager of the Climate and Finance Division at the Bank, announced financing for the first phase of the UN’s  Adaptation Benefits Mechanism (https://apo-opa.co/3v97No0), an innovative mechanism for mobilizing new and additional public and private sector finance for enhanced climate change adaptation action being piloted in selected African countries. 

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

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As night falls over Marrakech’s medina, wrought-iron lanterns illuminate the narrow streets of the souk. The air is filled with scents of saffron and mint, and the metallic clang of the water carriers’ cymbals punctuates the buzz from the maze of alleyways.

It is to this UNESCO World Heritage site that Zineb Iraqi, a social entrepreneur and co-founder of the cooperative Maison Malake, comes to seek inspiration for her products.

Located at the centuries-old crossroads of civilisations and trade routes, Marrakech fascinates her. “I often go there with my partners to try new flavours and develop new recipes,” she says.

Since last year, Maison Malake has been producing spreads using ground cashew nuts from Guinea Conakry. All of the company’s ingredients are 100 percent natural, organic, and high in protein, antioxidants, copper and magnesium. Cashew nuts are an excellent food with enormous potential, that are still relatively underused.

The idea of promoting and processing cashew nuts came to Zineb and to her partners, Ali Akdim, Aïcha Bammoun and Said Abdelkader El Figuigui while they were visiting a cashew nut plantation in Guinea Conakry.

Convinced of the nut’s potential, the friends decided to create a social cooperative, calling it “Malake”, or “angel” in classical Arabic. Proud of Africa’s richness and diversity, the four friends were keen to pay tribute to it. “We love Africa, and we wanted our actions to be meaningful,” explains Zineb.

Maison Malake is committed to developing sustainable partnerships throughout its value chain, from its network of producers and suppliers to its distributors and customers. The cooperative aims to protect and develop ecosystems, while striving for innovation. Maison Malake products align with a “quality for all” strategy and are now available throughout Morocco.

The cooperative was able to establish itself in Morocco rapidly thanks largely to Eden Souk, the country’s leading marketplace for organic and natural products. The platform is supported by the African Development Bank through the Azur Innovation Fund investment fund. 

Eden Souk ensures that its producers are better paid, since fair trade guarantees them better margins. For consumers looking for controlled, authentic products that support their well-being the provenance and quality of items sold through a short distribution circuit with a limited carbon footprint is reassuring.

Zineb Iraqi exudes the energy of the continent’s young entrepreneurs who are promoting African knowledge and know-how from a South-South perspective. Her ambition is to export the Made in Africa concept worldwide. Smiling, she envisages “a future in which Africa promotes its youth and its women and prospers”. 

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Two African Development Bank (www.AfDB.org)-supported projects have won awards at the IJ global awards held in London, United Kingdom.

The Singrobo hydropower plant in Ivory Coast, in which the Bank played the Mandated Lead Arranger role won the Power Deal of the Year award, while the Kom Ombo Solar plant, financed by the Bank as Co-MLA won the Energy Transition Deal of the Year award.

The Singrobo hydropower was the first hydropower IPP, and private sector-funded climate action investment to reach financial close in West Africa in December 2022. The Bank financed €40 million out of the total cost of €174.3 million. Currently under construction, the project comprises the design, development, operation, and transfer of a 44MW hydroelectric plant on the Bandama River, and a 3.5-kilometer transmission line and substation to evacuate power. A long-term power purchase agreement will see all the energy produced by the Singrobo plant sold to Compagnie Ivoirienne d’Electricite, the operator of Cote d’Ivoire’s national grid. Upon completion, the plant will contribute to Côte d’Ivoire’s energy goal of generating 42% of its electricity from renewable sources by 2030.

The Kom Ombo solar PV plant consisting of the design, construction and operation of a greenfield 200 MW solar PV plant in Egypt, reached financial close in 2023. The Bank provided a $27.22 million senior loan.

The project complements other African Development Bank energy operations in Egypt, including the Benban solar park, and the 150MW Egypt’s Feed in Tarriff (FiT) projects. Successful implementation of the project will increase Egypt’s installed power generation capacity from renewable sources, and further diversify the energy mix in line with the country’s energy transition strategy, and the Bank’s green growth agenda.

Commenting on the awards, Wale Shonibare, the Bank’s Director for Energy Financial Solutions, Policy&Regulation said, “These awards are a recognition of our continued efforts to deliver green, affordable, quality energy access to Africa, in line with the Bank’s energy and green growth agenda. We are encouraged to continue mobilizing private sector finance, and delivering innovative financial solutions that facilitate just energy transitions and address the unique financing needs of our regional member countries.”

The IJGlobal (www.IJGlobal.com) independent, peer-reviewed awards recognize notable global greenfield and refinancing deals in infrastructure and energy, and the organizations that made them happen.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

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Communication and External Relations Department
Email: media@afdb.org

About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 37 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org