Catalyzing private financing for climate impact in Africa
In 2017, as part of the G20 presidency, Germany initiated the Compact with Africa (CwA) initiative to sustainably promote Africa's economic potential. With the CwA facility, the BMU is making a climate policy contribution to the CwA initiative: The local green economy of the CwA countries is sustainably strengthened and thus a contribution to accelerating low-carbon development efforts. For this purpose, blended finance approaches are being developed to mobilize private and public climate-friendly investments, e.g. in energy, automotive, industrial production and tourism, in selected CwA countries. With the development of blended finance instruments, the risks for private investors are reduced and the mobilization of private capital increased. The project thus contributes to the redirection of financial flows in accordance with Art. 2.1c of the Paris Agreement and the mobilization of the private sector, which was agreed in 2009 in the Copenhagen Accord.
- Countries
- Benin, Burkina Faso, Ivory Coast, Egypt, Ghana, Rwanda, Senegal, The Democratic Republic of Congo, Ethiopia, Morocco, Tunisia, Guinea, Togo, Zambia
- IKI funding
- 20,000,000.00 €
- Duration
- 01/2021 till 12/2030
- Status
- open
- Implementing organisation
- The World Bank Group
- Political Partner
-
- Diverse climate change relevant institutions in the respective partner countries/Diverse klimarelevante Institutionen in den entsprechenden Partnerländern
- Ministry of Agriculture & Land Reclamation - Egypt
State of implementation/results
The CwA Green Business Fund supports small and medium-sized enterprises and financial institutions in 14 African countries in actively engaging in climate action and the energy transition. The aim is to mobilize private investment for climate-resilient business models. To date, the following progress has been achieved:
- Approval of ten new measures to support climate-friendly SMEs.
- Completion of a market study on off-grid solar in six West African countries (including Benin, Ghana and Togo).
- Implementation of regional climate finance workshops for financial institutions in five countries.
- Preparation of a risk-sharing facility to support solar technologies.
- Development of a virtual center for sustainable finance in West Africa (in cooperation with IFC).
- Use of a study on green finance for agricultural SMEs in Egypt to inform the design of a new World Bank project.
Latest Update:
12/2025
Project relations
Legend:
The link has been copied to the clipboard