Commercial Financial Institutions

Commercial banks in Africa face significant climate-related credit risks, with 49 banks across 14 countries exposed to USD 218 billion in risks. While these institutions lack developed climate strategies and remain risk-averse due to fiduciary duties, they possess the networks and capacity to mainstream resilience through partnerships with development banks and the adoption of adaptation taxonomies. Pan African Banks (PABs), such as Ecobank Transnational and Standard Bank, offer further potential for financial innovation and capital mobilization, despite a current lack of specific climate commitments.

• Commercial banks in Africa are exposed to substantial climate risks, with 49 banks in 14 countries holding credit in environmentally sensitive sectors totaling USD 218 billion, which represents nearly 29% of their total loans.
• Despite their dominance in the financial sector, commercial financial institutions in Africa lack developed climate strategies and are characterized by high risk aversion due to their fiduciary responsibility to achieve market-based returns. Additionally, domestic credit to the private sector by banks remains low at 27% of GDP compared to other emerging economies.
• Pan African Banks (PABs), including Ecobank Transnational of Togo (present in 33 countries) and South African Standard Bank (largest consolidated assets), have improved access to finance and stability, but have not yet made specific climate commitments.

APA

Climate Policy Initiative (2021). Commercial Financial Institutions. https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/actors/commercial-financial-institutions-2/

Chicago

Climate Policy Initiative. Commercial Financial Institutions. 2021. https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/actors/commercial-financial-institutions-2/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Commercial Financial Institutions |date=16 September 2021 |url=https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/actors/commercial-financial-institutions-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2021commercial, author = {{Climate Policy Initiative}}, title = {{Commercial Financial Institutions}}, institution = {Climate Policy Initiative}, year = {2021}, month = sep, url = {https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/actors/commercial-financial-institutions-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }