Reaction: African Development Bank Annual Meetings 2023 – Progressive Reform Rhetoric and Over reliance on Private Sector Climate Finance a Major Risk to Africa’s Debt Sustainability

The African Forum and Network on Debt and Development (AFRODAD) expresses concern that the African Development Bank's (AfDB) focus on mobilizing private sector financing for climate and green growth prioritizes profit over people and increases country debt vulnerabilities. While AFRODAD supports AfDB President Dr Akinwumi Adesina's calls to reform the global financial architecture, it warns that such calls remain rhetoric without strategic action to address high interest rates and limited financial access. The document highlights a significant disparity in climate finance, noting that Africa accounts for 3% of global carbon emissions and loses $7-15 billion annually to climate change, yet receives only about 3% of global climate finance (USD$18.3 billion). AFRODAD advocates for debt solutions including suspension, restructuring, and cancellation, support for a UNCTAD-proposed International Developing Country Debt Authority, and measures to resolve illicit financial flows.

• Africa faces a severe disparity in climate finance, receiving only about 3% of global climate finance (USD$18.3 billion) despite accounting for 3% of global carbon emissions and suffering annual losses of $7-15 billion due to climate change.
• The African Development Bank's emphasis on leveraging private sector financing for green growth is viewed as a risk that promotes profit over people and may increase debt vulnerabilities, undermine the domestic private sector, and crowd out public regulation of public goods.
• While the AfDB President has called for reforms to the international financial architecture to improve debt restructuring and transparency, AFRODAD argues these calls are merely rhetoric unless accompanied by actions that break the cycle of high interest rates and limited financial access.
• AFRODAD recommends specific systemic changes, including the adoption of UNCTAD's proposal for an International Developing Country Debt Authority to oversee temporary standstills and the resolution of illicit financial flows.

APA

African Forum and Network on Debt and Development (2023). Reaction: African Development Bank Annual Meetings 2023 – Progressive Reform Rhetoric and Over reliance on Private Sector Climate Finance a Major Risk to Africa’s Debt Sustainability. https://afrodad.org/sites/default/files/statements/Reaction-Progressive-Reform-Rhetoric-and-over-Reliance-on-Private-Sector-Climate-Finance-a-Major-Risk-to-Africas-Debt-Sustainability.pdf

Chicago

African Forum and Network on Debt and Development. Reaction: African Development Bank Annual Meetings 2023 – Progressive Reform Rhetoric and Over reliance on Private Sector Climate Finance a Major Risk to Africa’s Debt Sustainability. 2023. https://afrodad.org/sites/default/files/statements/Reaction-Progressive-Reform-Rhetoric-and-over-Reliance-on-Private-Sector-Climate-Finance-a-Major-Risk-to-Africas-Debt-Sustainability.pdf.

Wikipedia

{{cite press release |author=African Forum and Network on Debt and Development |title=Reaction: African Development Bank Annual Meetings 2023 – Progressive Reform Rhetoric and Over reliance on Private Sector Climate Finance a Major Risk to Africa’s Debt Sustainability |date=27 May 2023 |url=https://afrodad.org/sites/default/files/statements/Reaction-Progressive-Reform-Rhetoric-and-over-Reliance-on-Private-Sector-Climate-Finance-a-Major-Risk-to-Africas-Debt-Sustainability.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{africanforumandnetworkondebtanddevelopment2023reaction, author = {{African Forum and Network on Debt and Development}}, title = {{Reaction: African Development Bank Annual Meetings 2023 – Progressive Reform Rhetoric and Over reliance on Private Sector Climate Finance a Major Risk to Africa’s Debt Sustainability}}, publisher = {African Forum and Network on Debt and Development}, year = {2023}, month = may, url = {https://afrodad.org/sites/default/files/statements/Reaction-Progressive-Reform-Rhetoric-and-over-Reliance-on-Private-Sector-Climate-Finance-a-Major-Risk-to-Africas-Debt-Sustainability.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }