Thomas Ostros, Vice-President of the European Investment Bank (EIB), has announced the bank’s ambition to pursue climate-related investments across Africa.
In a Wednesday interview with Bloomberg TV’s Jennifer Zabasajja, Ostros emphasized the importance of long-term, viable investments that have the potential to spur economic growth.
The EIB, a key developmental bank, is currently involved in several projects in East and South Africa. Notable initiatives include the electrification of Nairobi’s bus transport system and enhancing food security in Zambia.
The bank has also committed 1 billion euros ($1.09 billion) to aid South Africa’s transition away from coal dependency.
Despite Africa’s minimal contribution to the global emissions driving climate change, Ostros highlighted the continent’s vulnerability, particularly to cyclones in Southeast Africa and severe drought conditions in many Southern African countries, the worst in decades.
Ostros further stated, “Multilateral development banks have a specific responsibility to seek out feasible projects that remain fundable, especially as many countries on the continent face challenges in accessing capital markets under reasonable terms.”
The surge in global interest rates and accumulating debt has made it difficult for African nations to issue international bonds or secure loans from commercial banks.
Highlighting the EIB’s longstanding commitment to Africa, Ostros pointed out that the EU’s financing institution has provided over 60 billion euros to the continent since 1965, reinforcing the bank’s role in supporting sustainable development and addressing climate change impacts in Africa.
