Africa will see a boost in its climate change investment with the accreditation of Africa Finance Corp. (AFC) as a partnering institution to the Green Climate Fund I (GCF). This makes AFC the first African development finance institution to receive accreditation.
AFC was called on by the GCF to become an accredited institution following the submission of its application. Accreditation by the GCF allows for AFC to access GCF’s committed capital of $9.3 billion. The pool of funds is used for climate change projects through members for on-lending, grants, lines of credit, guarantees and other fiduciary functions.
AFC intends to use the fund’s capital to further its investment in renewable energy.
While commenting on the development, Andrew Alli, President & Chief Executive Officer, AFC said: “This is very positive news as it reinforces AFC’s status as a multilateral financial institution. Through partnering with the Green Climate Fund, AFC will have access to valuable resources to support investments across a variety of green projects, making a significant contribution to the global efforts to combat climate change.â€