Africa requires green financing solutions to face climate changes and accomplish sustainable development targets
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The United Bank, Chief Executive Officer and Managing Director
Africa requires green financing solutions to face climate changes and accomplish sustainable development targets
- Africa contributes less than 3% of the global warming.
- The black continent suffers from severe climate changes.
- 4 positive reflections of green economic development.
- The African Development Bank is the first to issue green bonds mechanisms in 2013 to South Africa.
- Egypt is to issue green bonds in 2022.
- Green financing solutions are inevitable for human adoption with climate change consequences.
- Moods states : Green bonds target 200 billion dollars by 2023.
- The United Bank efforts towards sustainable green financing.
Cairo: May 25th, 2023
During the 58th African Development Bank group annual meeting, held in Sharm El Sheikh from 22-26 May 2023. Under the title of “Mobilizing private sector financing for climate and green growth in Africa. Ashraf El Kady- The Chief Executive Officer and Managing Director of The United Bank, stated that Africa needs variable green financing solutions to face negative climate changes.
El Kady said that although the relatively few harmful emissions produced by African continent that record only 3.8 % out of the total world emissions yet the negative impacts are severely dire. African people suffer hurricanes, floods, famines, and severe hot strikes. Which reflect negatively on human’s life and health. In addition to the unavailability of the basic needs of food and health care. These negative impact transform millions of African people to dire poverty. As well as, many social and economic issues that are threatening them.
Four positive reflections for green economic development
El Kady outlined that the transformation process towards green economy mechanisms has become inevitable for African countries. Especially with the adoption of sustainable development agenda 2063. Sustainable economic development targets four main reflections:
- Guaranteeing the growth of African countries economy against climate changes and environmental pollution of different kinds.
- Accomplishing faster eco- friendly economic developmental rates.
- Depending on green investments directly, which serve the natural environmental resources without draining them.
- Preserving the rights of upcoming generations.
The African Development Bank is the first to issue green bonds mechanisms in 2013 in South Africa.
El Kady praised the efforts concerted by The African Development Bank to mobilize developmental investments for the black continent. It issued the first green bonds in 2013 with the local currency of South Africa the “Round” which targeted financing 45 renewable energy projects.
Egypt is to issue green bonds in 2022 in collaboration with The World Bank
El Kady stated that Egypt has taken the first steps towards the green finance mechanisms in 2022, in cooperation with The World Bank in issuing green bonds. Aiming to meet its investments and finance requirement with sustainable environmental mechanisms.
He added that the green bonds mechanisms cope with the Egyptian state strategy 2030, towards achieving a deep societal change, regarding the increase of pure drink water for all Egyptians, renewable energy, sanitation, climate adoption, and green transportation using the monorail in Cairo.
Moods states : Green bonds target 200 billion dollars by 2023.
El Kady said that according to Moods, Green bonds market is flourishing this year. It was able to achieve 42.2 in first quarter of year 2023 and expected to reach 200 billion by the end of this year.
The United Bank efforts towards green sustainable finance
El Kady stated that The United Bank is among the firsts banks to contribute to carbon emissions reduction. In October 2022, UB issued the first carbon footprint report that covers the three headquarters. That is to cope with the Egyptian state strategy and The Central Bank of Egypt, towards transforming into green economy applications and eliminate negative climate change impacts.
UB has participated in the national initiative of converting cars into operating with natural gas in 2021. Which targets the Egyptian citizen to get the utmost benefit of the economic reform gains through:
- Maximizing the usage of natural gas as a fuel instead of solar and petroleum. In order to level up the services provided to the citizen and improve his/ her life style.
- Eliminating pollution and harmful environmental emissions that negatively affect the citizen’s health and surrounding environment because of fuel burns.
- Accomplishing the utmost benefit of productive capacity for Egyptian car factories and its feeding industry. The thing that contributes to maximizing production, increasing the local component and increasing the operating rates. So, eliminating unemployment and increasing exports.
The United Bank clients enjoy a package of digital banking solutions: internet banking for individuals and corporate, mobile banking and UB digital wallet all works 24/7, to save effort and time and reduce carbon emissions. As well as, opening 5 digital centers in 68 UB branches in different regions of the Republic.
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