African Financial Alliance on Climate Change (AFAC) 2030

Adaptation Need

Africa is acutely vulnerable to the impacts of climate change. Yet, despite the growing urgency, adaptation finance in Africa remains severely inadequate, as it currently receives only about USD 30 billion of the 277 billion annually it needs to meet its Nationally Determined Contributions (NDCs). A key barrier is the limited capacity of financial institutions (FIs) to assess, manage, and respond to climate risks. Most FIs are challenged by insufficient technical expertise, weak regulatory guidance, limited access to finance, and a persistent lack of reliable data to inform decision-making. These deficiencies heighten the sector’s exposure to climate risks and constrain its ability to mobilize and scale adaptation-aligned investments. 

GCA’s Added Value

As a member of the AFAC secretariates, GCA strengthens AFAC strategy as a self-sustaining platform for coordination, peer learning, and scaling adaptation finance across the continent. Through AFAC, GCA delivers technical assistances to embed climate risk management into Africa’s financial systems by setting pan-African standards, building institutional capacity and de-risking investment portfolios of financial institutions. At the continent level, GCA supports the development of the African Sustainable Finance Taxonomy,  a fit-for-purpose taxonomy to unlock the scale of finance needed for climate-smart investments in infrastructure, agriculture, energy, and other key sectors. GCA also supports the local entities to adopt global disclosure frameworks like ISSB through capacity building. Working directly with the financial institutions in the region, GCA provides hands-on support to Tanzania Agricultural Development Bank (TADB) and Somali Development and Reconstruction Bank (SDRB) to integrate climate data, assess portfolio risks, and design green financial products.