Commercial Financial Institutions - CPI

This fact sheet by the Climate Policy Initiative examines the role and risksS risks of commercial financial institutions in Africa, highlighting a significant exposure to climate risks andS and the potential for these institutions to mainstream resilience in their lending portfolios.

• Banks in 14 African countries have aS significant climate risk exposure, with 49 banks facing risks totaling USD 218 billion,SSSS,SS, which represents nearly 29% of their total loans due to credit provided to environmentally sensitive sectors.
• Commercial banks in Africa are characterized by a low level of domestic credit to the private sector (27% of GDP) compared to other emerging economies and are generally risk averse due to their fiduciary responsibility to seek market-based returns.
• While commercial financial institutions currently lack developed climate strategies, they possess the capacity to mainstream resilience through their networks with MSMEs, farmers, and co-operatives, and by partnering with development banks to structure financial instruments like dedicated credit lines for climate laSSS adaptation projects.
• There are 36 Pan AfricanS African Banks (PABs) headquartered in Africa with operations across the continent. While they have improved financial access and stability and have the potential for innovation, they have not yet made specific climate commitments.

APA

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

Chicago

Climate Policy Initiative. Commercial Financial Institutions - CPI. 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 - CPI |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 - CPI}}, 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} }