Can Ruto’s visit secure Germany’s commitment towards increased climate finance for Africa?

The visit comes ahead of the Hamburg sustainability conference scheduled to be held next month, which aims to bring together policymakers and business leaders to promote multilateral exchange and strengthen trust in international partnerships to help achieve the SDGs. 

Climate finance ambition, the need for the reform of the international financial system and Germany’s contribution to the International Development Association (IDA) – a World Bank fund which provides very low-cost and grant financing to some of the poorest countries in the world – are expected to be at the centre of the discussion. 

For Africa, IDA’s role in helping African countries adapt to the impacts of climate change and achieve a just transition as well as to invest in their development goals is significant.

Germany was amongst the top 5 contributors of IDA during the current replenishment cycle when shareholders agreed on a historic $93 billion financing package for IDA countries for fiscal years 2022-2025 – 70% of these contributions went to Africa.

Earlier this year, during an African Heads of States summit, President William Ruto, on behalf of African leaders, called on the World Bank to increase its IDA contribution from the $93bn raised in 2021 to at least $120bn in 2024. 

Kenya and Africa have been at the forefront of calling for reforms of the global financial architecture to make it fairer. President Ruto previously urged the G7 countries to support reforms which would provide Africa with access to concessional, long-term and agile finance. Germany’s role in driving these reforms remains significant.

President Ruto’s visit comes at a time when African countries are calling on developed countries to commit to bigger and better climate finance contributions during this year’s COP 29 to the tune of $1.3 trillion annually to support countries to adapt to and cope with climate impacts.

Julius Mbatia, a Climate Finance Expert, emphasizes Africa's need for substantial climate finance to address its environmental challenges. 

“As a goal for vulnerable regions of the world, Africa’s priority remains a climate finance goal that supports the region’s climate needs and priorities in light of Africa’s constrained fiscal space. Solutions to unlocking finance at scale for climate action and addressing high costs of capital and existing unfair financial systems must be at the core of the new finance goal,” says Mbatia.

He highlights Germany's role as a climate leader, urging the country to take decisive action toward achieving a global climate finance goal in the trillions, including Africa's ask of USD 1.3 trillion per year.

“Germany is a  climate leader and must lead in the resolve to deliver a climate finance goal in the trillions, such as what Africa is asking for—a USD 1.3 T per year mobilization goal." Julius Mbatia, Climate Finance Expert,” he says.