Mobilising finance to unlock new development pathways in Africa

This research paper argues that African countries must strategically and collectively mobilize climate finance both within and outside the UNFCCC system, as developed nations have failed to meet their financial commitments and are increasingly providing support through debt-increasing loans.

• African countries face immense financial burdens for climate action, with estimated adaptation costs between 2020 and 2030 ranging from USD 259 billion to USD 407 billion, and mitigation costs estimated at USD 715 billion over the same period.
• Developed countries have failed to meet the annual USD 100 billion climate finance target committed to at COP15 in 2009. Furthermore, the distribution of available funds has been uneven, with middle income countries receiving approximately 70 percent of finance between 2016 and 2018, while least developed countries received 14 percent and small island states received 2 percent.
• The modality of public climate finance has shifted toward loans, which increases the debt burdens of vulnerable countries. The share of loans rose from 52% in 2013 to 74% in 2018, while the share of grants fell from 27% in 2013 to 20% in 2018.
• African nations can leverage their rare earth resources to secure better climate and development terms from global powers like the US, EU, Japan, and Australia. By linking mineral development to the African Continental Free Trade Agreement (AFCFTA), they can demand localization of green technologies, technology transfer, and investments in local processing and manufacturing.
• To improve their bargaining power and financial mobilization, African countries should coordinate collectively rather than on a project-by-project basis. Recommended actions include utilizing the Africa Adaptation Acceleration Program, engaging with the WTO and AU-EU negotiations to protect revenue from carbon adjustment tariffs, and making mitigation support contingent on 'just' transition goals like job creation and R&D.

APA

Mungai, E. M. (2021). Mobilising finance to unlock new development pathways in Africa. Africa Policy Research Institute. https://afripoli.org/mobilising-finance-to-unlock-new-development-pathways-in-africa

Chicago

Mungai, Edward M. Mobilising finance to unlock new development pathways in Africa. Africa Policy Research Institute, 2021. https://afripoli.org/mobilising-finance-to-unlock-new-development-pathways-in-africa.

Wikipedia

{{cite report |last1=Mungai |first1=Edward M. |title=Mobilising finance to unlock new development pathways in Africa |publisher=Africa Policy Research Institute |date=9 November 2021 |url=https://afripoli.org/mobilising-finance-to-unlock-new-development-pathways-in-africa |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mungai2021mobilising, author = {Mungai, Edward M.}, title = {{Mobilising finance to unlock new development pathways in Africa}}, institution = {Africa Policy Research Institute}, year = {2021}, month = nov, url = {https://afripoli.org/mobilising-finance-to-unlock-new-development-pathways-in-africa}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }