Climate Finance Loans a Disaster for Climate-Burdened African Communities

Protesters at COP29 call for climate justice. Credit: Isaiah Esipisu/IPSby Isaiah Esipisu (baku)Saturday, November 16, 2024Inter Press Service

BAKU, Nov 16 (IPS) - African environmental activists at the ongoing climate summit (COP29) in Baku have called on climate financiers to stop suffocating poor countries with unbearable loans in the name of financing climate adaptation and mitigation on the continent.

Just a few months ago, a wave of protests by young people rocked the East and West African regions, protesting against exorbitant taxes that were being imposed on them for the governments to raise extra finances to service foreign loans.

"We reject loans or any type of debt instrument for a continent that had no role in warming this planet; we indeed refuse to borrow from the arsonists to put out fire they lit to burn our livelihoods," said Dr. Mithika Mwenda, the Executive Director at the Pan African Climate Justice Alliance (PACJA).

According to PACJA, between 70 and 80 percent of all the finances from the Green Climate Fund (GCF) to African countries come in the form of loans, through intermediaries, and by the end of the day, only some lucky climate-burdening communities can access the money—estimated at about 10 percent of the total funds disbursed.

Dr. Mithika Mwenda during Africa Day at COP29. Credit: Isaiah Esipisu/IPS

"We demand these finances be directed first and foremost toward those who are most exposed to climate risks and least able to adapt, said Mwenda. "This means moving beyond fragmented and delayed funding and toward a reliable, affordable, accessible and timely flow of finance (in the form of grants) that reflects the actual scale of the crisis," he said during Africa Day, an annual event organized by the African Development Bank on the sidelines of COP29.

Several examples mitigation and adaptation loans were touted during the event which would mean that African taxpayers would be required to repay loans of more than USD 1.6 billion.

"Some of these projects do not have footprints of the target communities in terms of prioritization," said Charles Mwangi, a Nairobi-based climate activist.

"Communities need to take lead in decision-making and framing of these projects," he said, noting that most of the finances are lost in expensive air tickets for consultants who are based abroad, hotel expenses and allowances.

On the contrary, Kenya is piloting a program known as ‘Financing Locally-Led Climate Action (FLLoCA).' A 5-year initiative jointly supported by the Government of Kenya, the World Bank and other donors aimed at delivering locally led climate resilience actions and strengthening county and national governments' capacity to manage climate risk.

"We are advocating for such policies that position adaptation at the forefront, not as an afterthought," said Mwenda. "We amplify the voices of local organizations and grassroots leaders in these discussions, so global commitments reflect the priorities on the ground," he said.

At COP29, discussions on the New Collective Quantified Goal (NCQG) offer a critical moment to reshape global financing in a way activists believe will truly address Africa's needs.

"It is essential that adaptation finance be needs-based, mobilized from public finances in the Global North, and be grant-based, with resources that consider the private sector as a third or fourth solution and not the first solution," said Mwenda.

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© Inter Press Service (2024) — All Rights ReservedOriginal source: Inter Press Service