PenCom, African investors back domestic savings for climate change resilient

Well aware of the key role of finance in the achievement of climate objectives, Caisse de Dépôt et de Gestion Group (CDG), a leading financial institution with a total balance sheet of 19 billion Euros has announced the launch of a network of African investors.

This network, which is also opened to non-African donors such as development banks, commercial banks and investment funds, aims to promote climate finance in Africa. Its creation embodies Morocco’s commitment, through CDG, to a low-carbon and climate change resilient development of the African continent.

Through this network, created in partnership with other financial institutions, notably the African Caisses des Dépôts, the Nigerian National Pension Commission (PenCom), the French Caisse des Dépôts and the French Development Agency, CDG and its partners wish to bring in their contribution to the mobilization of domestic savings to provide additional funding sources for climate adaptation and mitigation projects.

For African countries, implementing the national determined contributions (NDCs) will generate huge needs in terms of funding.

The creation of this African investors network was announced on yesterday at the closing event organized by CDG around the topic of “African domestic savings for a low carbon and climate change resilient development” held in the Moroccan Pavilion of the COP22 blue zone.

The event chaired by His Excellency Salaheddine Mezouar, Moroccan Minister for Foreign Affairs and Cooperation and President of COP22, was organized in the form of two round tables: one dedicated to Climate Finance in Africa and the world, and the other one focusing on feedback from African experiences in the mobilization of savings and funding for the transition to a low-carbon environment.

Among the participants in the event, alongside Zaghnoun, director general of CDG, were Chinelo Anohu-Amazu, director General of PenCom; Alain Ebobisse, managing director of Africa 50 and Pierre-René Lemas, chief executive officer of the French Caisse des Dépôts et Consignations. Amal Lee-Amin, Head of the Sustainable Development Division of the Inter-American Development Bank represented Latin America.

This initial set-up phase of the network will come in the form of a 2020 commitment. The integration of climate in funding decisions and development strategies, and the adoption by members of common measures to assess their carbon footprint, are among the objectives of this network.

The member countries will also have to join a global coalition of investor named PRI (Principles for Responsible Investment). Finally, the members commit to assist in the identification of projects and to provide financial support for investment programs destined to Africa.