Development Finance Institutions, represented by the Association of African Development Finance Institutions (AADFI), are emphasizing the need for concrete strategies to integrate climate-resilient products into African business frameworks.

This initiative aims to address climate finance requirements and reduce risks associated with sustainable investments in the region.

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Concerns were raised during the Joint International CEO Forum of AADFI and the Association of Development Financing Institutions in Asia and the Pacific, hosted by the Bank of Industry in Abuja.

The forum, themed “DFIs’ Strategic Role towards a Climate Smart Future,” brought together bank CEOs from 33 countries across four continents.

Mr. Thabo Thamane, Chairman of AADFI, highlighted the potential severe consequences faced by least developed countries, particularly in Africa, Asia-Pacific, and Latin America.

The ongoing impact of climate change on human health, safety, food and water security, and sustainable socio-economic development globally was emphasized.

Thamane warned of the substantial economic losses predicted globally by 2048 if strategic actions are not taken to combat climate change.

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Africa, specifically, faces a potential loss of 5% to 15% of its projected GDP by 2050, with an estimated climate adaptation cost of $10 to $30 billion annually by 2030.

Immediate action is crucial to mitigate these effects and prevent significant GDP losses in the Asia and ASEAN countries.