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Development banks pledge $610m to tackle climate threats in Africa

AfDB to provide $230m trade finance package for Access Bank

The African Development Bank and the Islamic Development Bank have unveiled a $610 million joint initiative to strengthen climate resilience and address fragility in Africa’s most vulnerable regions, with a focus on the Sahel and Horn of Africa.

The announcement, shared via AfDB’s Facebook page on Wednesday, formalizes a partnership cemented during a high-level technical meeting at AfDB’s headquarters in Abidjan on April 22-23.

The two-day summit brought together senior officials from both institutions to align strategies and share expertise on tackling the dual challenges of climate change and socio-economic instability in transition states.

Building on prior collaborations, including a 2019 civil society dialogue hosted by AfDB’s Civil Society Division, the initiative emphasizes coordinated investments to mitigate the impacts of extreme weather, resource scarcity, and other climate-driven stressors that exacerbate fragility.

The $610 million fund will finance scalable projects promoting climate adaptation, sustainable resource management, and community-driven resilience.

By pooling resources, the banks aim to deliver sustainable solutions that foster long-term stability in regions prone to environmental and economic challenges.

“This strategic alliance with IsDB reinforces our shared vision of addressing complex challenges in transition states through tailored, context-specific approaches,” Director of the Transition States Coordination Office at the African Development Bank, Yero Baldeh, said.

“By aligning our methodologies and leveraging our complementary strengths, we can deliver more sustainable solutions in places where development needs are most acute.”

The IsDB delegation was led by Ahmed Berthe, Lead NGO and Civil Society Specialist, and included Esra Sayhi and Abass Kassim, both Senior Fragility and Resilience Specialists.

“Our institutions serve many of the same member countries facing similar challenges,” noted Berthe.

“What has impressed us most is the African Development Bank’s shift toward anticipatory action and prevention rather than simply responding to crises. This partnership creates a framework for maximising our collective impact through coordinated investments, shared knowledge, and aligned strategic priorities.”

The dialogue highlighted the African Development Bank’s Transition Support Facility, which allocated over $610 million to projects in fragile contexts in 2024.

Discussions focused on aligning the TSF with the IsDB financing tools to enhance collaboration in shared operational countries.

Climate security was a central theme, with both institutions acknowledging how environmental challenges worsen fragility, especially in regions like the Sahel and the Horn of Africa. The partnership aims to develop integrated solutions addressing immediate needs while fostering long-term resilience.

Additionally, they discussed harmonizing assessment methods, coordinating financial instruments, and advancing climate security strategies, agreeing to form a joint technical working group to implement the partnership.

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