Laying the Ground for Scaling up Climate Finance in Sub-Saharan Africa

Edward Gemayel, Samuele Rosa, Vidhi Maheshwari, Christoph Ungerer and Peter Lindner

No 2025/099, IMF Working Papers from International Monetary Fund

Abstract: Sub-Saharan Africa (SSA) faces growing climate vulnerability, with rising temperatures and extreme weather threatening agriculture, food security, and economic growth. These challenges worsen poverty, fiscal constraints, and limited human capital investment. To address these risks, SSA countries need to scale up green investments while ensuring debt sustainability. Given insufficient traditional public financing, a mix of grants, concessional debt, and private investments is crucial. This paper presents survey results on climate finance in SSA and introduces the Climate Finance Preparedness Index (CFPI) to assess countries' readiness for green financing, highlighting the need for policy reforms, institutional strengthening, and innovative financial products.

Keywords: Sub-Saharan Africa (SSA); Climate change adaptation; Climate financing; Mitigation and resilience; Public financial management (PFM); climate finance product; IMF country work; IMF working papers; mitigation investment; SSA country; Climate finance; Climate change; Natural disasters; Climate policy; Sub-Saharan Africa; Global; Africa; East Africa (search for similar items in EconPapers)
Pages: 51
Date: 2025-05-23
New Economics Papers: this item is included in nep-afr and nep-dev
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