The Board of Directors approved a $90.7 million grant and a $60.3 million loan at its 39th meeting.

The teams working on the new financing approval include (l- to r): Shakil Beedassy, GCF Coordinator, AfDB; Marianne Kjellen, GCF Independent Technical Advisory Panel Expert; Gabriel Boc, GCF Senior Agriculture and Food Security Specialist; Laouali Garba, Division Manager, AfDB; Gareth Phillips, Division Manager, AfDB; and Godfrey Oluka, GCF Project Officer

The Green Climate Fund has sanctioned $151 million in funding for a significant resilience initiative backed by the African Development Bank, aimed at tackling climate vulnerability in the Horn of Africa.

This approval was made during the Fund’s 39th Board meeting and includes a $90.7 million grant alongside a $60.3 million loan. The financing will bolster the Bank Group’s “Building Climate Resilience for Food and Livelihoods in the Horn of Africa programme,” which will benefit approximately 4.6 million individuals across Djibouti, Somalia, Kenya, Ethiopia, and South Sudan.

The Horn of Africa faces severe climate-related challenges, including unpredictable rainfall, rising temperatures, and an increase in the frequency of droughts and floods. These factors have intensified socioeconomic difficulties and jeopardized the livelihoods of agro-pastoral communities that depend on rain-fed agriculture. Climate change has also resulted in a rise in livestock, crop, and human diseases, as well as land degradation, which diminishes productivity.

Dr. Martin Fregene, the Bank’s Director for Agriculture and Agro-Industry, emphasized the Bank's dedication to enhancing climate resilience. He stated, “The mobilization of support from the Green Climate Fund reflects the African Development Bank Group's ongoing commitment to advancing climate-resilient and sustainable agricultural systems in the Horn of Africa, thus enhancing food security in one of the world's most vulnerable regions.”

Fregene further noted, “These funds will also strengthen the Feed Africa Strategy and complement the Country Food and Agriculture Delivery Compacts introduced at the Dakar 2 Feed Africa: Food Sovereignty and Resilience Summit. This initiative aims to alleviate poverty and food insecurity while fostering sustainable economic growth in the region.”

The newly allocated funding will enhance community-led and gender-inclusive resilience initiatives. These initiatives encompass sustainable land management techniques, access to climate-smart technologies and best practices, renewable energy solutions, capacity-building for cooperatives, agribusiness, and micro, small, and medium enterprises, as well as credit and climate services, early warning systems, and index insurance.

Dr. Anthony Nyong, the Director for Climate Change and Green Growth at the Bank, stated, “The Bank has consistently demonstrated its commitment to addressing climate change and is dedicated to integrating low-carbon and climate-resilient economic development across all major sectors of our operations.” He emphasized that the new funding will strengthen the Bank’s initiatives to alleviate the impacts of climate change and enhance resilience, particularly in agricultural communities.

In addition to benefiting communities, the financing from the Green Climate Fund is expected to lead to a substantial reduction in carbon emissions, with the potential to sequester 14.1 metric tons of carbon dioxide equivalent throughout the project's 25-year duration—comparable to the lifetime emissions produced by 600,000 vehicles.

The African Development Bank will oversee the new funding and evaluate the program, which is set to commence in the first quarter of 2025. The five targeted countries will implement the program through their respective ministries of finance and agriculture over a six-year period, with project interventions anticipated to benefit the targeted communities for 25 years.