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African NDC Investment Awards announced during G7 Summit– Call for Entries

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Rome, Johannesburg, Nairobi, Lagos, Washington

Africa investor (Ai), a leading international investment group, announced today following the Partnership for Global Infrastructure and Investment (PGI) meeting at the G7 Summit that African Heads of State, governments, investment champions, the private sector, philanthropies, and development finance partners will again be recognized for their NDC investment mobilization initiatives by the 2024 Africa investor (Ai) NDC Investment Awards.

The prestigious Africa investor (Ai) NDC Investment Awards were launched at the Commonwealth Heads of Government Meeting (CHOGM) in Kigali, with the inaugural 2022 Awards presented under Africa’s COP Presidency at COP27 in Sharm El Sheikh. The 2023 Awards were presented at COP28 in Dubai in collaboration with the COP28 UAE Presidency, and the 2024 NDC Awards will be presented in November during COP29 in Baku, Azerbaijan.

Hosted by Africa investor (Ai) and sponsored by the African Green Infrastructure Investment Bank (AfGIIB), these NDC Awards are the only international, pan-African NDC Investment Awards that recognize and reward both public and private sector institutions working to innovate and mobilize private capital at scale for Africa’s bankable NDC investment commitments and projects. Africa needs to mobilize $3 trillion to implement its NDC investment opportunities by 2030, while the whole world only managed to mobilize $2.8 trillion for renewable energy investments over the past 20 years, with Africa receiving only 2% of that global sum.

The NDC Investment Awards are the premier NDC institutional investor-public-private partnerships (IIPPs) platform, designed to inspire greater ambition, accelerate NDC implementation, and showcase investment success stories. This assists in mobilizing private capital at scale to close Africa’s multi-trillion-dollar NDC climate financing and green industrial infrastructure investment gap.

Commenting on the Ai NDC Investment Awards Announcement and Call for Entries, Dr. Hubert Danso, Chairman of Africa investor Group and Chair of the NDC Awards Adjudication panel, said,

“The importance of the Ai Africa NDC Investment Awards cannot be overstated, given that Africa’s $3 trillion NDC investment requirements will need to mobilize and secure unprecedented allocations of private capital at-scale and speed, at a time when global aid and net financial transfers to Africa have fallen to their lowest level since the global financial crisis.”

Dr. Danso went on to highlight that investing at scale in ambitious African NDCs offers governments and investors a unique institutional investor-public partnership platform. This platform harnesses the Nairobi Declaration (Africa’s Green Investment Deal), the African Green Industrialization Initiative (AGII), the African Green Infrastructure Investment Bank (AfGIIB), the African Continental Free Trade Area (AfCFTA), and the G7 Partnership for Global Infrastructure and Investment (PGI), to de-risk and deliver Africa’s just energy transition and align the future of global green industrialization, finance, and long-term private capital for the benefit of investment stakeholders, people, planet, and nature.

The 2024 African NDC Investment Awards will be presented to African Heads of State, Governments, Investors, Development Finance Partners, Companies, and Philanthropies through the following categories:

Presidential Investment Statesman of the Year:
1. Presidential Green Infrastructure Investment Statesman of the Year
2. Presidential Just Transition Investment Statesman of the Year
3. Presidential Carbon Exchange Investment Statesman of the Year
4. Presidential Transport Investment Statesman of the Year
5. Presidential Water Investment Statesman of the Year
6. Presidential Agriculture Investment Statesman of the Year
7. Presidential Energy Investment Statesman of the Year

Best NDC Sector Investment Initiatives of the Year:
1. Best Waste NDC Investment Initiative of the Year
2. Best Energy NDC Investment of the Year
3. Best Transport NDC Investment Initiative of the Year
4. Best Urban Development NDC Investment Initiative of the Year
5. Best Forestry NDC Investment Initiative of the Year
6. Best Agriculture NDC Investment Initiative of the Year
7. Best Health NDC Investment Initiative of the Year
8. Best Water NDC Investment Initiative of the Year

Private Capital Mobilization Initiatives of the Year:
1. Best Natural Capital NDC Investment Initiative of the Year
2. Best Green Industrialization NDC Investment Initiative of the Year
3. Best Bankable Donor NDC Investment Initiative of the Year
4. Best Blended Investment NDC Investment Initiative of the Year
5. Best Investable NDC Adaptation Investment Initiative of the Year
6. Best Financeable NDC City Investment Initiative of the Year
7. Best GreenTech NDC Investment Initiative of the Year
8. Best Youth NDC Investment Initiative of the Year

The deadline for Award entry submissions is August 30, 2024. The shortlist will be announced on September 24, 2024, during UN Climate Week at the Africa investor (Ai) Summit in New York. The 2024 NDC Investment Award winners will be announced in November during COP29.

Entry is a simple 500-word nomination outlining how your organization meets the awards criteria. Entries from any public or private sector institution, whether African or international, are welcome provided they meet the category entry criteria.

DOWNLOAD NDC INVESTMENT AWARDS ENTRY PACK HERE
To submit your entry, please click here.

ENDS

Note to Editors For more information on the Ai African NDC Investment Awards, visit: www.ndcinvestmentawards.com, or email: tmutasa@africainvestor.com

About The NDC Investment Awards Headline Sponsor:
The African Green Infrastructure Investment Bank (AfGIIB)
The African Green Infrastructure Investment Bank (AfGIIB) is an African Union-convened and supported African institutional investor-led global climate investment platform to catalyze institutional private capital at scale for African green industrial infrastructure investment opportunities. Visit www.afgiib.com

About The NDC Investment Awards Host:
The Africa investor (Ai) Group
Africa investor (Ai) Group is an institutional investment holding platform that aligns its pools of capital from sovereign wealth funds, pension funds, family offices, and long-term investors with vetted infrastructure, private equity, and technology investment opportunities in Africa. Visit www.africainvestor.com

G7 Leaders and Global Investors Urged to Adopt Africa TIVA ESG Policy

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Enforcing Minimum Africa Trade In-Value Added Standards to Align with SDGs, Nairobi Declaration and the Just Energy Transition”

As leaders in the global economy, G7/G20 Heads of State and global institutional investors, have a fiduciary responsibility to uphold ethical standards and promote sustainable practices. Embracing Environmental, Social, and Governance (ESG) principles is not just a moral imperative but also a strategic imperative for long-term economic stability and prosperity.

Therefore, endorsing and adopting the policy recommendation to regulate thresholds against low levels of ‘trade in value-added’ goods (TIVA) as an anti-ESG and punitive discriminatory trade practice, is crucial for advancing human rights, promoting equitable economic development, the just transition, and ensuring the sustainability of investments, people and the planet.

Promoting Human Rights:

By regulating low levels of trade in value-added goods from global value chains, G7 Heads of State and global institutional investors can actively address the ‘S’ in ESG’ and combat conventional, unjust, exploitative, systemic discriminatory international trade practices and promote human rights in supply chains.

Ensuring that investee and portfolio companies have a significant portion of their value-added goods supply chains sourced from Africa, encourages fair labour practices, protects workers’ rights, and fosters inclusive industrial economic growth across the continent and equitable access to global markets.

Fostering Economic Development:

Prioritizing high-value TIVA from Africa over low-value raw materials is instrumental in fostering sustainable economic development and green industrialization on the continent in line with the African Union’s Nairobi Declaration (Africa’s Green Investment Deal), the asset-owner-led African Green Infrastructure Investment Bank (AfGIIB), the African Continental Free Trade Area (AfCFTA), the Africa Green Industrialisation Initiative (AGII) and the African Unions 5% Infrastructure Investment Allocation Agenda.

By incentivizing investments in value-added production and green technology manufacturing, this policy recommendation promotes local job creation, green industrialization, skills development, and technology transfer, ultimately contributing to poverty reduction, sustainable development goals, and Africa’s just energy transition at industrial scale.

Enhancing Investment Returns:

Embracing ESG best practices, including the promotion of value-added trade, not only aligns with ethical considerations and institutional investor-public partnerships (IIPPs) best practices but also enhances market-appropriate investment returns for long-term investors.

Companies with diversified, greener, and resilient supply chains are better equipped to navigate market volatility, regulatory changes, climate change, landed cost advantages and reputational risks.

Therefore, integrating TIVA-ESG threshold criteria into investment decision-making processes can lead to more sustainable, competitive, and profitable outcomes for public and private investors and stakeholders.

Mitigating Systemic Risks:

Addressing the inequities and vulnerabilities inherent in the current global trade practices affecting Africa is essential for mitigating systemic risks and promoting financial stability.

By promoting inclusive sustainable economic growth and transforming extractive industries into green industrial globally competitive value chains, G7/G20 Heads of State and global institutional investors can contribute to building more resilient and sustainable economies, less susceptible to external shocks and geopolitical tensions, whilst earning market appropriate returns from increased access to the $10trn and growing global green industrial economy, which will be valued at a quintillion dollars this century.

Demonstrating Leadership:

Endorsing and adopting the policy recommendation to regulate trade in value-added goods as an ESG and sustainability imperative, sends a powerful signal of leadership and commitment to responsible long-term investing and sustainable development.

As stewards of global capital and sovereign assets, global institutional investors  and G7/G20 Heads of State, have the influence and leverage to drive positive change and shape the future of global commerce and the global green industrial economy, in alignment with best sustainability and ESG principles.

In conclusion, endorsing and adopting the policy recommendation to regulate trade in value-added goods as an ESG and sustainability imperative, is not only ethically imperative, but also strategically beneficial for Heads of State and global institutional investors.

By promoting human rights, fostering economic development, enhancing investment returns, mitigating systemic risks, and demonstrating leadership, this TIVA-ESG policy recommendation aligns with the broader objectives of the sustainable development goals, the Paris Agreement, the Nairobi Declaration, and the just energy transition, to enshrine inclusive prosperity for all stakeholders.

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Appendix 1 – Investors Board of Trustee Template for Special TIVA Resolution

Resolution of the Board of Trustees of [Insert Institution]

Preamble:

The Articles of Agreement of (Insert institution) outline the institutions’ purposes. In recognition of the global climate just transition and trade inequality emergency for Africa and the industrial climate investment opportunities affecting our beneficiaries, we, the Board of Trustees of [Insert Institution], hereby resolve to expand the existing purpose within our Agreement, specifically in [Insert Relevant Article], to include the following:

Resolution:

“The purpose of this institution shall include the promotion of sustainable economic development and social progress among its beneficiary members, both individually and collectively.

This includes explicit commitments to enforce Trade in Value Added (TIVA) standards. These standards mandate that a minimum threshold of value-added goods for finished products must originate from Africa. This is to ensure that investments and client companies do not engage in practices where raw materials extracted from Africa are indiscriminately processed and add value outside of the continent.

We, the Board of Trustees, adopt this resolution in recognition of the critical linkages between trade, human inequality, trade discrimination, SDG 10, climate change, social equity, the just transition, obligations under the Task Force for Inequality-related Financial Disclosures (TIFD), and the long-term development goals of our members.”

Appendix 2 – Template for the Terms of Reference for the Board TIVA Committee

Purpose:

The primary purpose of the Committee is to assist the Board in setting and enforcing TIVA Threshold targets and overseeing their implementation through regular reviews.

The Committee provides strategic guidance to management on the direction and objectives appropriate for achieving these targets and monitors performance against them.

Responsibilities & Duties:

To fulfill its responsibilities, the Committee shall undertake the following activities, along with any other tasks it deems necessary or appropriate:

  1. Establishing and Periodically Reviewing TIVA Threshold Targets:
    • Define strategic objectives, targets, and key performance indicators (KPIs) relating to TIVA thresholds.
    • Set specific portfolio targets to align with Africa TIVA goals, including:
      • TIVA threshold ratios and absolute targets.
      • Specific annual targets investments relating to low-income and least-developed countries.

2. Guidance on Strategic Green Industrial Infrastructure Investments in EMDEs:

    • Review and recommend business plans, budgets, and results in relation to the institution’s strategic priorities and TIVA threshold targets.
    • Engage actively with management to ensure that corporate performance indicators, instruments, and incentives align with the institution’s objectives on TIVA thresholds and scope 3 decarbonization (covering direct and indirect emissions).

3. Monitoring Performance Against TIVA Targets:

    • Periodically review management’s performance against TIVA targets based on quarterly reports.
    • Evaluate occasional management reports on special topics or strategic themes related to TIVA thresholds and green industrial infrastructure investment trends and opportunities and provide feedback.

Meetings:

The Committee shall meet as often as necessary, but no less than once per quarter, to effectively carry out its responsibilities.

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Dr. Hubert Danso, Ai Chair, Talks GEMs Future with ARC Ratings

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Africa investor (Ai) today confirmed that Dr. Hubert Danso, its CEO and Chairman, and the Chairman of the African Union’s Continental Business Network (CBN), the African Green Infrastructure Investment Bank (AfGIIB) and Co-Chair of the Sustainable Markets Initiative (SMI) Africa Council, sat down for an exclusive interview with ARC Ratings to discuss the Global Emerging Markets Risk Database (GEMs), its future and the importance of institutional investor-public partnerships (IIPPs).

In this wide-ranging interview from ARC Ratings offices in Canary Wharf, London, Africa investor’s Dr. Hubert Danso tells the ARC Ratings that the GEMs Consortium of Multilateral Development Banks (MDBs) must without further delay democratize full investor access to GEMs data and fully implement GEMs2.0, as mandated by G20 Heads of State as their sovereign shareholders, to establish GEMs as a separate operational entity to democratize access to GEMs data for investors and credit rating agencies, to improve transparency and assist mobilize private capital at-scale and speed, for emerging markets and developing economies (EMDEs) sustainable development investment opportunities.

To support and mobilize the trillions for the critical just energy transition in EMDEs, global and domestic asset owners are proactively driving the evolution of GEMs so that it is accessible to investors to use for accurate risk assessment and to responsibly diligence opportunities to scale investment allocations to EMDEs.

To achieve this, Africa investor (Ai), ARC, and global investors have formed an institutional investor-public partnership (IIPP) platform to not only ensure GEMs2.0 disclosure is delivered but to expand it with new inputs from the investment community and rating agencies towards GEMS3.0—an asset allocation tool that supports the alignment of institutional investment allocations at-scale, with EMDEs Paris Agreement and Sustainable Development Goals (SDGs).

View the full interview here

Useful links:
Introducing GEMs3.0 at New Financial Pact Summit: Hidden GEMS – The Global Emerging Markets Database by Dr. Hubert Danso 
Africa investor announces GEMs3.0 at COP28 Finance Day in Dubai 
Funding Vital Emerging and Developing Market Projects: How GEMS and Private Markets Can Help Achieve Scale – ARC Ratings
Bankers Push World Bank to Unlock Secret Data For Climate Loans: Bankers Push World Bank to Unlock Secret Data For Climate Loans
Unlock our Hidden Gems: Costs to Developing Countries of MDBs not democratising investor access to GEMS 

Multipolarism: The Sustainable Geopolitical Green Industrial Investment Policy

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In today’s rapidly evolving multipolar global economy, industrialized countries face a critical decision on how to harness the multipolarity in global trade, to reimagine the balance of trade policies: Either continue to rely on traditional export revenues or pivot to a multipolarism geopolitical model that prioritizes investments in Emerging Markets (EMs) with a focus on climate transition resources.

by adopting this new multipolarism model, where regional alliances and sovereign economic interests collaborate to meet each other’s development and finance needs instead of competing,  industrialized nations can secure competitive investment returns while positioning themselves to capitalize on the burgeoning $10 trillion per annum global green industrial economy. Here’s the investment case for making this strategic shift.

Here’s the investment case for making this strategic shift.

  1. Capitalizing on the Growing Green Economy Market Growth Potential

The global green industrial economy is expanding at an unprecedented rate, estimated to reach $10 trillion annually. By investing in EMs’ climate transition projects, industrialized countries can tap into this lucrative market, positioning themselves as leaders in green technology and sustainable development.

Premium Pricing for Green Products: Products and services emerging from green investments can be sold at a premium. Consumers and businesses are increasingly willing to pay more for sustainable and environmentally friendly products, providing higher margins and enhanced profitability.

  1. Competitive Investment Returns

Higher Returns in Emerging Markets: Emerging markets offer higher growth potential compared to mature markets. Investments in renewable energy, sustainable infrastructure, and climate adaptation projects in EMs can yield competitive returns, outpacing those from traditional export revenues.

Risk Mitigation Through Diversification: By diversifying investments across various EMs, industrialized countries can mitigate risks associated with single-market dependencies. This approach spreads risk and enhances the stability of investment portfolios.

  1. Driving Technological Innovation

Accelerating Green Technology Development: Investing in climate transition resources in EMs spurs technological innovation. Industrialized countries can lead the development and deployment of cutting-edge green technologies, which can then be marketed globally.

First-Mover Advantage: Early investments in green industrial projects position countries as pioneers in sustainable technology, securing long-term competitive advantages in the global market.

  1. Strategic Geopolitical Benefits

Strengthening Global Alliances: By supporting EMs in their climate transition efforts, industrialized countries can build stronger geopolitical alliances, fostering cooperation and stability. These partnerships can lead to favorable trade agreements and enhanced diplomatic relations.

Soft Power and Global Leadership: Leading the charge in global climate initiatives enhances a country’s soft power. It positions industrialized nations as responsible and forward-thinking global leaders committed to sustainable development.

  1. Enhancing Domestic Economic Resilience

Job Creation in New Sectors: Transitioning to a green investment model creates jobs in emerging industries such as renewable energy, sustainable infrastructure, and green technology. This can offset job losses in traditional export sectors.

Economic Diversification:Investing in green projects abroad and developing corresponding industries domestically reduces reliance on traditional exports. This diversification strengthens economic resilience against global market fluctuations.

  1. Meeting Global Climate Goals

Addressing Climate Change: Industrialized countries have a critical role in combating climate change. By investing in EMs’ climate transition projects, they contribute significantly to global emission reduction goals, aligning with international climate agreements and enhancing their environmental credentials.

Corporate Social Responsibility: Companies in industrialized nations can bolster their corporate social responsibility profiles by supporting sustainable development initiatives, and attracting environmentally conscious investors and consumers.

 

Implementation Strategies

Institutional Investor-Public Partnerships (IIPPs): Collaborative Projects where Governments, Universal Owners, and private sector portfolio companies, jointly fund and manage industrial climate transition projects in EMs, sharing risks and rewards.

Risk Mitigation: Align co-investments with African asset owners and strategic at-scale long-duration, bankable offtake and blended investment alliances, with initiatives such as the Inflation Reduction Act, African Growth and Opportunity Act (AGOA), the EU Green Deal’s Value Addition Partnerships and bankable long duration global corporate commitments for green technologies to mitigate historical barriers to global market access, foreign exchange, and political risks associated with investing in African markets.

Utilize instruments like guarantees, and insurance to protect investments against political and economic risks in EMs.

Employ the world-class Institutional Investor-Public Partnership (IIPP) framework, to safeguard investments.

 

Green Bonds and Climate Investment Funds

Innovative Financing: Leverage green bonds and dedicated climate funds to finance sustainable projects in EMs, providing a steady stream of capital for green investments.

Blended Investments: Combine public and private investment to enhance the scale and impact of climate transition projects.

 

Policy Support and Incentives

Regulatory Frameworks: Develop supportive regulatory frameworks that encourage green investments and ensure fair market conditions for green industrial cities and long duration bankable offtakes agreements for green technologies.

Tax Incentives: Offer tax breaks and other incentives for companies investing in NDC and green industrial infrastructure investment projects in Africa, especially those in Green Industrial Cities.

 

Capacity Building and Technical Assistance

Training Programs: Implement training programs to build local capacity and ensure the effective implementation and management of green industrial projects.

Technical Support: Provide technical expertise to help Africa develop robust and scalable climate transition and NDC industrial scale projects.

 

Comparing import revenues to investment returns (prospects and dynamics)

Investment Returns

  1. Rate of Return:
    • Green Investments: Investments in green technologies and infrastructure tend to have attractive long-term returns. Renewable energy projects, for example, can offer returns ranging from 5% to 10% or more annually.
    • Emerging Markets: Investments in Emerging Markets generally come with higher potential returns, often in the range of 10% to 20% annually, depending on the sector and market conditions.
  1. Compound Growth:
    • Compound Interest: Over decades, compound growth significantly boosts the value of initial investments. For instance, a 10% annual return on a $1 trillion investment could grow to approximately $2.59 trillion over 10 years, and around $6.73 trillion over 20 years.
  1. Diversification:
    • Risk Mitigation: Diversifying investments across various green technologies and regions can help mitigate risks and ensure more stable returns.

Import Revenues

  1. Export Revenues vs. Import Costs:
    • Traditional Model: In a traditional export-driven model, revenues are generated from selling industrial goods to Emerging Markets. These revenues are typically subject to market fluctuations, competition, and trade policies.
    • Premium Pricing: If industrialized countries can command premium prices for advanced green technologies, the revenue per unit sold could be higher, but total revenue would still depend on market size and demand.
  1. Market Size and Growth:
    • Global Green Economy: The global green economy, projected to reach $10 trillion annually, represents a significant market. Capturing even a fraction of this market through premium pricing can lead to substantial revenues.
    • Export Revenue Potential: If industrialized countries capture 5% of this market with premium products, annual revenues could be around $500 billion. Over a decade, this could amount to $5 trillion, assuming consistent growth and market share.

Comparative Analysis

  1. Investment Returns:
    • High Potential: Assuming an average annual return of 10%, a $1 trillion investment could yield approximately $1.59 trillion in returns over 10 years, and $5.73 trillion over 20 years.
    • Impact of Scale: For larger investments, say $3 trillion, the returns could be $4.77 trillion over 10 years and $17.19 trillion over 20 years, highlighting the power of compounding.
  1. Import Revenue:
    • Steady Flow: Import revenues from selling industrial products might provide a more consistent revenue stream, but may not grow as rapidly due to market saturation and competition.
    • Market Dynamics: Factors like trade barriers, geopolitical tensions, and economic cycles can affect import revenues more directly than diversified investment returns.

 

Investing for a Sustainable Future

While both import revenues and investment returns have their merits, long-term investments in Emerging Markets’ green transitions offer potentially higher and more sustainable returns. The compounding effect of investment returns over decades can significantly outweigh the steady but potentially lower growth of import revenues.

  • Investments in the hundreds of billions to trillions: With high rates of return, these investments can substantially grow over time, providing robust financial gains.
  • Import revenues: Though they provide a steady income stream, they are more vulnerable to market conditions and might not scale as dramatically as investment returns.

Thus, from a strategic perspective, prioritizing investments in green technologies and infrastructure in emerging markets could yield higher overall returns than relying solely on import revenues from industrial product sales.

 

In Conclusion

Adopting a multipolarism geopolitical industrial trade policy that prioritizes climate investments in EM’s over immediate export revenue benefits offers a compelling strategic investment case for industrialized countries.

Mulitpolarism not only yields competitive returns and capitalizes on the $10trn per annum and growing expanding global green industrial economy, but also drives technological innovation, strengthens geopolitical alliances, and enhances domestic economic resilience.

By leading on multipolarism-led green industrial policy, industrialized nations can secure their economic future, address the just energy transition, and arrest global climate challenges while demonstrating leadership commitment to a more equitable and sustainable world.

The GreenTech Bankable Offtake Swap Model: A Vision for Sustainable Development

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Today, we are witnessing innovative financial mechanisms such as debt-for-nature swaps that link economic incentives with environmental conservation.

Building on this model, we propose the GreenTech Bankable Offtake Swap Model, a groundbreaking private capital mobilization at-scale investment framework, designed to support EMDEs just energy transition and close the multi-trillion dollar climate finance and investment gap.

Concept Overview:

The GreenTech Bankable Offtake Swap Model envisions developed countries committing to substantial long-term global bankable offtakes for green technologies manufactured in EMDEs to 2080.

This initiative aligns with and will service the $10 trillion per annum and growing global green industrial economy.

In return, EMDEs will direct a dedicated percentage of its investment returns and taxes towards climate adaptation projects to close their climate adaptation infrastructure financing deficit.

Key Features:

  1. Long-term Offtake Agreements:

Developed countries will enter into multi-decade binding agreements to purchase green technologies, such as renewable energy systems, electric vehicles, and sustainable agricultural technologies, up to 2080.

These agreements will ensure investability, and stable demand and drive industrial innovation and scalability in EMDE green tech industries.

  1. Just Energy Transition Integration: The model will act as the cornerstone of a multi-trillion dollar Just Transition investment program, recognizing the need for developed countries to compensate developing nations for trillions of damage caused and projected, in their transition to a sustainable future. This financial support will be structured as equity investments rather than aid, fostering long-term mutual growth and development.
  2. Investment Returns and Tax Contributions: A significant portion of its investment returns and tax revenues generated from the green tech sector will be allocated by developing countries to finance climate adaptation infrastructure projects, such as flood defenses, sustainable water management systems, and resilient agricultural practices.
  3. Sustainable Development Goals (SDGs) Alignment: The model will contribute directly to several SDGs, including affordable and clean energy, industry innovation, and infrastructure, as well as climate action. By promoting green technology adoption and infrastructure investment, the model supports holistic and sustainable development.
  4. Institutional Investor-Public Partnerships (IIPPs) Collaboration: The GreenTech Bankable Offtake Swap Model will encourage collaboration between governments, international financial institutions, institutional investors, private sector developers, and investors. This institutional investor-public partnerships (IIPPs) approach will leverage diverse expertise and long-term capital at scale, that can be deployed at speed through institutional investor-public partnerships (IIPPs) frameworks.

Benefits:

  • For Developing Countries:
    • Climate-friendly industrialization leveraging the burgeoning Green Industrial Cities network,
    • Access to cutting-edge green technologies,
    • Financial resources for climate adaptation, and
    • A strengthened position and double-digit participation in the $10trn per annum and growing global green economy and global value chains for finished goods, as a pose to historic raw mineral extractives.
  • For Developed Countries:
    • Delivery of climate reparations and just transition commitments,
    • New markets for green technologies,
    • Contributes to scaling climate adaptation infrastructure investments, and
    • A stable return on investment through diversified financial instruments.
  • For the Planet:
    • Accelerated transition to a sustainable global economy,
    • Reduced carbon emissions,
    • Places a market value on and makes Carbon and Natural Capital investable, and
    • Enhanced resilience to climate impacts.

Implementation Pathway:

  1. Policy Framework Development: Establish international agreements and policies that outline the structure, responsibilities, and benefits of the GreenTech Bankable Offtake Swap Model.
  2. Financial Mechanism Design: Create and support investment vehicles such as the African Green Infrastructure Investment Bank (AfGIIB) and tax structures to facilitate the flow of capital at scale and returns between stakeholders.
  3. Partnership Formation: Engage governments, financial institutions, and private sector entities in collaborative institutional investor-public partnerships (IIPPs), to drive the initiative linking to global offtake mechanisms such as the Inflation Reduction Act, The African Growth and Opportunity Act (AGOA), The EU Net Zero Industry Act, Value Addition Partnerships, BRICS and Belt and Road Initiative related Offtakes.
  4. Project Identification and Deployment: Collaborate with institutional investors and their portfolio companies, to co-create and originate priority NDC green technology and climate adaptation projects, ensuring alignment with national, regional, and international sustainability goals.
  5. Monitoring and Evaluation: Implement robust monitoring and evaluation frameworks to track progress, measure impact, and ensure transparency and accountability. The GreenTech Bankable Offtake Swap Model represents a visionary approach to addressing the dual challenges of climate change and sustainable development. By leveraging the growing global green industrial economy, this model provides a pragmatic and impactful solution for developed and developing countries alike to equitably finance climate adaptation infrastructure and foster a sustainable future for all at scale and speed.

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Trillions to Quintillions: Paving the Way to a Quintillion-Dollar Global Green Industrial Economy

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Dr. Hubert Danso, Chair, African Green Infrastructure Investment Bank (AfGIIB)

As we stand on the brink of a green industrial revolution, the economic landscape is poised for unprecedented transformation. The adoption of sustainable technologies and practices is not only a response to the urgent climate crisis but also a catalyst for extraordinary economic growth. The significant investments in green technology and infrastructure are accelerating the global economy towards a historic milestone: a quintillion-dollar valuation.

Current Economic Context

The global economy is currently valued at approximately $100 trillion. Historically, the economy has grown tenfold roughly every 50 years, driven by innovation, industrialization, and globalization. As we project forward, this growth trajectory places us on a path to potentially reach $1 quadrillion by 2070-2080, assuming a consistent annual growth rate of 5%.

The International Monetary Fund (IMF) projects a global economic growth rate of approximately 3-4% annually in the short to medium term. However, as emerging markets continue to develop and advanced economies recover from recent downturns, there’s potential for this rate to increase.

 

Accelerating Growth with Green Investments

However, the green industrial revolution introduces a powerful accelerant into this equation. Massive investments in renewable energy, electric vehicles, sustainable agriculture, and other green technologies are expected to drive economic growth at an even faster pace. Here’s how:

  1. Increased Capital Flows: Investments in green technologies are attracting trillions of dollars from both the public and private sectors. Governments, corporations, and investors worldwide are committing significant capital to fund the transition to a sustainable economy. According to the IMF, global investments in renewable energy alone could exceed $2 trillion annually by 2030.
  2. Innovation and Efficiency: Green technologies are fostering innovation, improving efficiency, and reducing costs. This enhances productivity across various sectors, contributing to overall economic growth. The IMF notes that advancements in technology could increase global GDP by 7% by 2030.
  3. Job Creation: The green sector is a major driver of job creation, providing employment opportunities in new and existing industries. This boosts income levels and stimulates consumer spending, further propelling economic expansion. According to the IMF, the transition to a green economy could create up to 24 million new jobs worldwide by 2030.
  4. Resilience and Sustainability: Sustainable practices reduce environmental risks and resource depletion, ensuring long-term economic stability and resilience. This mitigates the adverse impacts of climate change on economic activities.

The Trillions-to-Quintillions Economy

Given the aggressive doubling rate of the economy, which can be accelerated through green investments, the timeline to reach a quintillion-dollar global economy could be significantly shortened:

  • Current Growth Rate: Without the green revolution, the global economy might reach $1 quadrillion by 2070-2080.
  • Accelerated Growth Rate: With the green industrial revolution, the global economy could potentially reach this milestone much earlier, potentially by 2060-2070.
  • Long-Term Projection: The sustained and amplified growth driven by green investments could see the global economy approaching a quintillion-dollar valuation around 2080-2100, rather than the initial estimate of 2120.

Path to a Quintillion-Dollar Economy

  1. Current Global Economy Size
    The global economy is currently conservatively estimated to be around $100 trillion.
  2. Projected Growth to Reach a Quadrillion
    • Growth Rate: If we assume the global economy grows at an average annual rate of 5%, it would take approximately 50 years to grow tenfold.
    • Time to Quadrillion: Thus, the global economy might reach $1 quadrillion around 2070-2080, depending on the exact growth rate and economic conditions.
  3. Doubling of Money Supply
    • Doubling Every 5-10 Years: Assuming an aggressive doubling rate every 5 years due to economic growth and inflation (not solely money printing), this aligns with higher inflation rates and economic growth.
    • Exponent Calculation: If the global economy grows at a rate where it doubles approximately every 5 years, this will use the formula \( P = P_0 \times (1 + r)^t \), where \( r \) is the growth rate and \( t \) is time.
  4. Growth Projection Using Exponents
    • Doubling Period: Doubling every 5 years means a growth factor of 2 every 5 years.
    • Exponential Growth: Using \( 2^{\frac{\text{years}}{5}} \):
      • In 50 years: \( 2^{10} = 1024 \)
      • A $100 trillion economy growing by this factor would reach around $102.4 quadrillion in 50 years.
  5. Long-Term Projections (Quintillion)
    Exponential Growth to Quintillion:
    Using the same formula:

    • \( 2^{20} = 1,048,576 \)
    • Thus, the global economy could reach a quintillion (1,000,000,000,000,000) dollars in about 100 years (around 2120) if it continues doubling every 5 years.

Summary

  1. 2030 Projection: By 2030, if growth is steady, the global economy will likely be significantly larger but not near a quadrillion yet.
  2. 2070-2080 Projection: The global economy might reach a quadrillion dollars by 2070-2080, assuming consistent high growth.
  3. 2080 Projection: A quintillion valuation could be reached around 2080-2120, depending on growth rates.

In Conclusion

The green industrial revolution is not merely an environmental imperative but an investable mega-trend and robust economic strategy. By driving substantial investments in green technologies, we are setting the stage for accelerated, inclusive, and resilient economic growth, leading to a faster attainment of monumental economic and sustainability milestones. This investment mega-trend is a pivotal force in today’s multipolar global economy, shaping a just, sustainable, inclusive, and prosperous economic future, making the quintillion-dollar economy an attainable reality within this century.

Ends

Sources:
1. IMF Economic Outlook, April 2024
2. IMF World Economic Outlook, October 2023
3. IMF Renewable Energy Investment Report, 2024
4. IMF Technological Advancements and Global GDP Growth, 2023
5. IMF Green Jobs Report, 2024

Africa investor’s Hubert Danso urges institutional investors to harness IIPPs opportunities, criticizes MDB reform agenda

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Hubert Danso, CEO and chairman of Africa investor (Ai), is calling on long-term investors to harness opportunities offered by institutional investor public partnerships (IIPPs).

By harnessing the African Union’s Nairobi Declaration (Africa’s Green Investment Deal), the African Green Infrastructure Investment Bank (AfGIIB), the African Continental Free Trade Area (AfCFTA), the Africa Green Industrialization Initiative (AGII) launched at GOP28 and a $3 trillion pipeline of NDC investment opportunities, Danso said long-term investment partners can seize this pivotal moment where financial prosperity converges with environmental responsibility and dedicate strategic investment allocations to African green industrial infrastructure.

As long-term universal owners, he believes asset owners can catalyze mandate-aligned, sustainable economic growth, propel technological innovation and combat climate change on a global scale — all while optimizing market appropriate returns on a climate and risk-adjusted basis.

African green industrial infrastructure assets, along with the $3 trillion platform of NDC project investment opportunities, are poised to capture a significant share of the $10 trillion per year and growing global green offtake market, according to Ai. With escalating demand for industrial green technologies and electric vehicle batteries, Africa emerges as a central player in sustainably meeting this demand, leveraging its abundant renewable energy resources.

In addition, Africa’s vast renewable-energy resources serve as the cornerstone for decarbonizing mining and manufacturing processes, driving advancements in artificial intelligence and sustainable food systems. Harnessing these resources propels Africa to the forefront of green technology production, offering unparalleled environmental benefits while revolutionizing traditional manufacturing paradigms.

From both a return on investment and risk-adjusted return perspective, African green industrial infrastructure presents an enticing proposition, according to Danso. Abundant resources, favorable regulatory environments and strategic partnerships guarantee competitive returns with carefully managed risk exposure.

Danso highlighted that investing in African green industrial infrastructure transcends mere investment as usual; rather, it embodies a strategic imperative for domestic and global universal owners dedicated to advancing global sustainability. To read more about Danso’s call to action, click here.

In related news, Ai recently issued a memo, titled More Smoke & Mirrors: The Calculated Mirage of Adequate MDB Private Capital Mobilization for Africa’s Climate & SDG Investment Goals, to coincide with the spring meetings of the International Monetary Fund and the World Bank Group in Washington, D.C.

The memo serves as a cautionary note to African heads of state that despite the World Bank’s recent “self-congratulatory progress updates on the implementation of the long-overdue multilateral development banks’ (MDBs) reform agenda, they continue to preside over an epic private capital mobilization (PCM) market failure, with inadequate PCM key performance indicators and no answer to mobilizing the desperately needed trillions to industrialize and transform Africa’s abundant natural and human capital.”

The memo states MDBs are notoriously criticized for competing with and crowding out, rather than crowding in the domestic and global institutional investment community. As a $1.5 trillion collective global balance sheet (including the World Bank, AfDB, etc.), MDBs PCM reforms are falling short, with the potential to close only a mere 10 percent of Africa’s financing gap between now and 2030 and 2050, even after the implementation of current significant MDB PCM reforms.

This contrasts sharply with the global institutional investment community, according to Ai, representing more than $200 trillion of assets — which is capable of closing up to 90 percent of Africa’s financing gap through IIPPs.

To read the full memo, click here.

 

Africa investor (Ai) Rallies Institutional Investors during IDA Africa Presidential Summit

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Dr Hubert Danso, Africa investor CEO and Chairman, encourages long-term investors to harness the opportunities offered by Institutional Investor-Public Partnerships (IIPPs): The Framework for Strategic Investment Allocations to African Green Industrial Infrastructure as a Globally Competitive Investable Asset Class.

As the International Development Association (IDA) African Heads of State Summit takes place in Nairobi today, seeking to scale IDA 21’s contributions to at least $120bn toward Africa’s green industrial investment potential, Dr Danso said we stand at a historic crossroads where financial prosperity converges with environmental responsibility. As universal owners, our capital, portfolio companies, and market influence wield the power to redefine global industrial markets while fostering sustainable returns for future generations.

With the advent of the African Union’s Nairobi Declaration (Africa’s Green Investment Deal), the asset-owner-led African Green Infrastructure Investment Bank (AfGIIB), the successful launch of the African Continental Free Trade Area (AfCFTA), and the Africa Green Industrialisation Initiative (AGII) that was launched at GOP28, Dr Danso made the following case for long-term investment partners to seize this pivotal moment and dedicate strategic investment allocations to African green industrial infrastructure, an emerging globally competitive investable asset class poised to reshape the global manufacturing landscape while generating exceptional market-appropriate risk and climate-adjusted returns.

The Opportunity:
– $10 Trillion Annual Market: African green industrial infrastructure assets and the $3 trillion platform of NDC project investment opportunities, are poised to capture a significant share of the $10 trillion per annum and growing global green Offtake market. With escalating demand for industrial green technologies and electric vehicle batteries, Africa emerges as a central player in sustainably meeting this demand, leveraging its abundant renewable energy resources.

– Superior Renewable Energy Endowments:
Africa’s vast renewable energy resources serve as the cornerstone for decarbonizing mining, and manufacturing processes, driving advancements in Artificial Intelligence, and sustainable food systems (Africa possesses 60% of the world’s arable land).

Harnessing these resources propels Africa to the forefront of green technology production, offering unparalleled environmental benefits while revolutionizing traditional manufacturing paradigms.

The Value Proposition:
– The Cost-Efficient Global Green Manufacturing Hub:
Strategic investment allocations, combined with the expertise and engagement of investors’ green tech portfolio companies, will consolidate African green industrial infrastructure investability, as the cornerstone establishing Africa as the world’s most cost-efficient and competitive green manufacturing hub.

By beneficiating the continent’s 40% global stock of crucial green mineral reserves, Africa addresses the well-documented long-term global shortage of green technologies.

Incentive-rich, dedicated special-purpose green industrial city destinations provide portfolio companies access to predictable growth markets and technology transfer opportunities.

– Competitive Returns:
From both a return on investment and risk-adjusted return perspective, African green industrial infrastructure presents an enticing proposition.

Abundant resources, favorable regulatory environments, and strategic partnerships guarantee competitive returns with carefully managed risk exposure.

Mitigated Political & Forex Risks:
Aligned co-investments with African asset owners and strategic at-scale long-duration, bankable offtake and blended investment alliances with initiatives such as the Inflation Reduction Act, African Growth and Opportunity Act (AGOA), the EU Green Deal’s Value Addition Partnerships and bankable long duration global corporate commitments for green technologies, mitigate historical barriers to global market access, foreign exchange, and political risks associated with investing in African markets.

Transparent global governance structures and regulatory reforms, exemplified by the world-class Institutional Investor-Public Partnership (IIPP) framework, fortify investor confidence and safeguard investments.

Dr Danso highlighted that Investing in African green industrial infrastructure transcends mere investment as usual; it embodies a strategic imperative for domestic and global universal owners dedicated to advancing global sustainability.

By harnessing Africa’s Nairobi Declaration, Green Industrialisation Initiative (AGII), Continental Free Trade Area (AfCFTA), $3 trillion pipeline of NDC investment opportunities, untapped natural and human capital potential, and investor ownership of global value chains, as long-term universal owners, asset owners can catalyze mandate-aligned, sustainable economic growth, propel technological innovation, and combat climate change on a global scale, all while optimizing market appropriate returns on a climate and risk-adjusted basis.

Dr Danso called on global investment leaders to join African asset owners and embark on this transformative journey, shaping the future of global green industrialization, finance, and long-term investment, while delivering exceptional impact for stakeholders people, planet, and nature.

Dr. Hubert Danso is the CEO and Chairman, Africa investor (Ai) Group, Chair African Sovereign Wealth and Pension Fund Leaders Forum, Chair, African Union Continental Business Network, Co-Chair, Sustainable Markets Initiative (SMI) Africa Council, Chair, CFA New York Global Asset Owners Council.

Dr. Danso’s Investor Letter on Allocating to African Green Industrial Infrastructure as a Globally Competitive Investable Asset Class

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Dear Esteemed Institutional Investment Partners,

We stand at a historic crossroads where financial prosperity converges with environmental responsibility.

As universal owners, our capital, portfolio companies, and market influence wield the power to redefine global industrial markets while fostering sustainable returns for future generations.

With the advent of the African Union’s Nairobi Declaration (Africa’s Green Investment Deal), the asset-owner-led African Green Infrastructure Investment Bank (AfGIIB), the successful launch of the African Continental Free Trade Area (AfCFTA), and the Africa Green Industrialization Initiative (AGII) launched at COP28, I implore you to seize this pivotal moment and dedicate strategic investment allocations to African green industrial infrastructure.

This emerging globally competitive investable asset class is poised to reshape the global manufacturing landscape while generating exceptional market-appropriate risk and climate-adjusted returns.

The Opportunity:

  • $10 Trillion Annual Market:

African green industrial infrastructure assets and the $3 trillion platform of NDC project investment opportunities are poised to capture a significant share of the $10 trillion per annum and growing global green offtake market.

With escalating demand for industrial green technologies and electric vehicle batteries, Africa emerges as a central player in sustainably meeting this demand, leveraging its abundant renewable energy resources.

  • Superior Renewable Energy Endowments:

Africa’s vast renewable energy resources serve as the cornerstone for decarbonizing mining and manufacturing processes, driving advancements in artificial intelligence, and sustainable food systems (Africa possesses 60% of the world’s arable land).

Harnessing these resources propels Africa to the forefront of green technology production, offering unparalleled environmental benefits while revolutionizing traditional manufacturing paradigms.

The Value Proposition:

  • Cost-Efficient Global Green Manufacturing Hub:

Your investment allocations, combined with the expertise and engagement of investors’ green tech portfolio companies will consolidate African green industrial infrastructure investability, establishing Africa as the world’s most cost-efficient and competitive green manufacturing hub. 

By beneficiating the continent’s 40% global stock of crucial green mineral reserves, Africa addresses the well-documented long-term global shortage of green technologies.

Incentive-rich, dedicated special-purpose green industrial city destinations provide portfolio companies access to predictable growth markets and technology transfer opportunities.

  • Competitive Returns:

From both a return on investment and risk-adjusted return perspective, African green industrial infrastructure presents an enticing proposition.

Abundant resources, favorable regulatory environments, and strategic partnerships guarantee competitive returns with carefully managed risk exposure.

  • Mitigated Political & Forex Risks:

Aligned co-investments with African asset owners and strategic at-scale long-duration, bankable offtakes, and blended investment alliances with initiatives such as the Inflation Reduction Act, African Growth and Opportunity Act (AGOA), the EU Green Deal’s Value Addition Partnerships, and bankable long-duration global corporate commitments for green technologies, mitigate historical barriers to global market access, foreign exchange, and political risks associated with investing in African markets.

Transparent global governance structures and regulatory reforms, exemplified by the world-class Institutional Investor-Public Partnership (IIPP) framework, fortify investor confidence and safeguard investments.

In Conclusion:

Investing in African green industrial infrastructure transcends mere investment as usual; it embodies a strategic imperative for domestic and global universal owners dedicated to advancing global sustainability.

By harnessing Africa’s Nairobi Declaration, Green Industrialization Initiative (AGII), Continental Free Trade Area (AfCFTA), $3 trillion pipeline of NDC investment opportunities, untapped natural and human capital potential, and investor ownership of global value chains, by working with the African Green Infrastructure Bank (AfGIIB), asset owners can catalyze mandate-aligned, sustainable economic growth, propel technological innovation, and combat climate change on a global scale, all while optimizing market-appropriate returns on a climate and risk-adjusted basis.

I invite you, as global investment leaders and partners, to join the AfGIIB and African asset owners in embarking on this transformative journey.

Together, we can shape the future of global green industrialization, finance, and long-term investment, delivering exceptional impact for stakeholders, people, planet, and nature.

Sincerely,

Dr. Hubert Danso
CEO and Chairman, Africa investor (Ai) Group
Chair, African Sovereign Wealth and Pension Fund Leaders Forum
Chair, African Union Continental Business Network
Co-Chair, Sustainable Markets Initiative (SMI) Africa Council
Chair, CFA New York Global Asset Owners Council

MDB Private Capital Mobilization Market Failure Elevated at World Bank Meetings

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Africa investor (Ai) issued a Memo today entitled “More Smoke & Mirrors: The Calculated Mirage of Adequate MDB Private Capital Mobilization for Africa’s Climate & SDG Investment Goals.” This memo coincides with the Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) in Washington DC.

The high-level Memo serves as a cautionary note to African Heads of State that despite the World Bank’s recent self-congratulatory progress updates on the implementation of the long overdue Multilateral Development Banks (MDBs) reform agenda, they continue to preside over an epic Private Capital Mobilization (PCM) market failure, with inadequate PCM key performance indicators (KPI’s) and no answer to mobilizing the desperately needed trillions, to industrialize and transform Africa’s abundant natural and human capital.

The Memo highlights that MDBs are notoriously criticized for competing-with and crowding out rather than crowding in, the domestic and global institutional investment community. As a $1.5 trillion collective global balance sheet (including the World Bank, AfDB, etc.), MDBs PCM reforms are falling disturbingly short, with the potential to close only a mere 10% of Africa’s financing gap between now and 2030-2050, even after the implementation of current significant MDB PCM reforms.

This contrasts sharply with the global institutional investment community, representing over $200 trillion of assets, capable of closing up to 90% of Africa’s financing gap through institutional investor-public partnerships.

The G20 reports that for every $1 of MDB finance provided, MDB’s are mandated to mobilize $10 of private capital. However, according to the G20, MDBs’ actual delivery is a mere 20-38 cents mobilized from the private sector for every $1 of development finance.

Given the fiscal constraints managing the implications of the ever-expanding genomic poly-crisis, means that Africa unlike industrialised countries will need to majoratively finance its Nationally Determined Contribution (NDC) and Sustainable Development Goals (SDG’s) projects through private capital.

The magnitude of addressing the MDB PCM market failure requires a tectonic shift in mindset, leadership, and institutional investor engagement.

Collaborative efforts with institutional investors, recognizing the value of natural capital, and redirecting concessional funds towards the most impactful private proposals that can deliver the $1:10 PCM ratio are essential immediate steps.

To optimally partner private capital to mobilize the trillions, it’s crucial to make ‘Development Investable’ rather than ‘Investment Developmental’.

Pursuant to this and in response to the African Union’s Committee of African Heads of State on Climate Change’s (CAHOSCC), February statement made during the 37th African Union Heads of State Summit, on the importance of its goal to work with the domestic and global institutional investment community, to mobilise private capital at-scale to realize the objectives of the ‘Nairobi Declaration’ (Africa’s Inflation Reduction Action (IRA) equivalent/Green Investment Deal framework), Institutional investors called for Climate Investment Statesmanship, to champion the establishment of a Heads of State-Climate Investors’ Coalition, as a global private climate capital mobilization at-scale high-level initiative for African green industrialization.

Dr. Hubert Danso, CEO and Chairman of Africa investor (AI) stated,

‘Given the MDB’s private capital mobilisation philosophy and bureaucratic culture, consistently resulting in PCM market failures, MDBs are fundamentally the wrong institutions to lead advisory support to governments on setting-up the enabling policy frameworks to mobilize private capital at speed and scale for climate and SDG’s investments’.

The proposed Heads of State-Climate Investors’ Coalition, with its Heads of State and Institutional investor members, would co-develop a ‘Nairobi Declaration’ aligned, Private Climate Capital Mobilization at-Scale institutional investor-public partnership, to close the gap for Africa’s $3 trillion of NDC and SDG’s bankable projects and work collaboratively on the following key thematic issues:

  • MDB Climate Financing, De-Risking Reform & Catalytic Concessional Funding,
  • Legal and Regulatory Reforms,
  • Democratized Access to Data for Investment Decision Makers (especially GEMs 3.0),
  • Mainstreaming Institutional Investor-Public Partnerships (IIPPs),
  • Enfranchising Carbon Markets,
  • Private sector and SME development for the Just Energy Transition.

The Coalition, akin to the objectives of the Inflation Reduction Act (IRA) and the EU Net Zero Industry Act (NZIA), would develop competitive market incentives for domestic and global institutional investors, to allocate capital at scale to African green industrial infrastructure as a globally competitive investable asset class, programmatically de-risked and implemented through transparent and predictable institutional investor-public partnerships (IIPPs) regulatory frameworks.

Dr. Danso emphasized the critical opportunity for investors and Heads of State to align growth mandates and jointly lead in addressing climate change. He highlighted the importance of aligning Africa’s investable industrialization opportunities with bankable global decarbonization value chains. Dr. Danso stressed that by making development investable and aligning with the $200trn asset mandates, managed by domestic and global institutional investors, as long-term investment partners, African Heads of State are uniquely positioned to deliver climate investment statesmanship.
He emphasized the need for green industrialization institutional investor-public partnerships to bridge the current 90% MDB PCM market failure, for Africa’s $3 trillion of NDC Climate & SDG’s investment opportunities. Dr. Danso emphasized the importance of the ‘Nairobi Declaration’ and the Africa Green Industrialisation Initiative (AGII) that was launched at GOP28, leveraging the $4.6 trillion African Continental Free Trade Area (AfCFTA), in partnership with the proposed coalition, to scale the continent’s participation in the $10 trillion per annum and growing global green industrial economy value chains. This partnership would focus on significantly increasing Africa’s global market share for African manufactured green technologies, delivering investors market-appropriate climate and risk-adjusted returns, accelerating Africa’s just energy transition, and contributing to industrial-scale decarbonization worldwide for the benefit of people, planet, and nature.

This timely Memo, calling for institutional investor-public partnerships to close Africa’s 90% PCM gap, comes at a critical juncture for the continent and the world. Africa is grappling with the compound effects of trade-debilitating climate disasters, high costs of capital, rising levels of debt distress, investment outflows, and reduced development assistance.

These challenges have profound implications for advancing the global decarbonization agenda, given Africa’s unparalleled wealth of investable transition assets and emerging green industrial city special purpose manufacturing destinations. These assets encompass its substantial youth population, abundant renewable natural capital resources, and superior global stocks of critical minerals essential for powering green technologies in the rapidly expanding $10 trillion global green industrial economy.

The Memo issued during the World Bank Spring meetings, whilst serving as a cautionary note on MDB PCM market failures, outlines a roadmap to shift away from dependence on short-term subsistence development finance. Instead, it advocates for mutually rewarding, ambitious long-term private industrial investment partnerships that could quickly establish the continent as the world’s premier manufacturing hub for investable green technologies and artificial intelligence innovation.

The Heads of State-Climate Investors’ Coalition, outlined in the Memo, has emerged as the hot climate investment initiative at the World Bank Spring Meetings. Public and private sector finance leaders alike acknowledge its novelty and recognize its potential to not only accelerate Africa’s just energy transition, but also to drive industrial-scale decarbonization worldwide, benefiting people, the planet, and nature.

Click here to read the Memo.

See Ai MDB Reform Private Capital Mobilization Initiatives here 

 

 

 

 

 

 

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