Climate change is one of the most pressing issues that Africa and the world face. In order to achieve our climate change goals, stakeholders need support from development finance institutions. This article will explore the types of support available and their potential impact, the collaborations with different sectors, as well as how we assist the government in ensuring that we try to reach our climate change goals.
First, What Are DFIs?
A Development Finance Institutions (DFI), also known as a development bank or development finance company (DFC), is a financial institution that provides risk capital for economic development projects on a non-commercial basis and plays a crucial role in financing private and public sector investments in developing countries, in the form of higher risk loans, equity positions, and guarantees. Some of the funds DFIs help with include gender mainstreaming, sustainable development, developing impoverished areas, as well as climate financing. Through DFIs’ work and collaborations with both public and private sectors, many solutions have come about in job creation, social development, socio-economic development, and inclusive economic growth. There are many projects financed by DFIs, and we will take a look at some of them.
Finance For The Climate
No matter how ready we thought we were for the impact of global warming and climate change, the actual events have left us in a state of panic. Africa being one of the continents that suffer most at the hands of climate change, seems to be the least prepared due to lack of resources. Most African countries are already battling issues such as poverty, lack of development opportunities, lack of funding for entrepreneurship, and little to no investment in bettering the impacts of climate change on them. This makes these countries suffer in an effort to make their situation better, and climate finance is one of the first steps to ensuring a sustainable life for these areas.
With climate finance, these places will be better prepared for any change with enough resources to maintain their businesses, jobs and livelihoods. DBSA, along with the South African government’s Department of Environmental Affairs, has set up Green Bonds, which is a unique, national fund that seeks to support green initiatives to assist South Africa’s transition to a low carbon, resource-efficient and climate-resilient development path delivering high impact economic, environmental and social benefits. Our transition to low-carbon will not only assist the climate but help the many Africans who do not have enough resources to own any electrical equipment and subscription. This will also make businesses work better.
How To Get Involved
If you are on a mission to help African countries with climate change challenges and mitigate the impacts it has on them, then the DBSA is the right place for you to gain more information and help. Our climate finance facility also helps private companies with investments targeting infrastructure projects designed to mitigate the harsh change. You can get involved in different projects that help provide solutions to these struggling areas and create plans and ideas to share with the DBSA and other DFIs because every bit counts and matters.
Government Accountability Through People
Besides the stated challenges, African countries also have government initiative problems. When the state has funds to award to the different areas and municipalities that struggle and suffer at the hands of climate change, challenges such as corrupt handling of tenders, mismanagement of funds and delayed projects play a role in many of these areas never being developed. However, local organisations such as the South African Local Government Association (SALGA - which is mandated to hold local government officials accountable for their work and give them the right tools to help them carry out their tasks) help steer these officials in the right direction. Accountability and transparency can also be achieved when we let the people who will benefit from these organisations and officials decide who they want to lead. If we encourage more and more people to get involved in the decision-making process of electing officials, we stand a better chance of nominating people who are just as passionate about climate change and its impacts as we are.
Final Words, Change Is Almost Here
DFIs are not just sitting and letting change find them; they are the vanguards for it and are constantly creating numerous ways and projects to help with climate change and sustainable living. The biggest success is when we will all be equipped and ready for what nature has to offer us without putting the lives and livelihoods of those who suffer the most at risk. Remember to invest in low-carbon living as soon as you possibly can to help start this new era that we are seeing sweep in.