Leveraging Islamic Finance Core Principles to Support Africa’s Climate Transition Strategy and Address Energy Poverty
Islamic finance, underpinned by the principles of Shariah law, upholds a model of financial integrity that emphasizes ethical investment, social equity, and environmental stewardship. This framework avoids interest, speculative transactions, and investments in harmful industries, focusing instead on projects that have tangible benefits for society and the environment.
Africa’s climate finance gap is significant, with an estimated $3 trillion needed by 2030 to achieve the continent’s commitments under the Paris Agreement. Conventional funding methods have not sufficiently met this vast financial requirement, highlighting the necessity for innovative financing solutions. Islamic finance there, with its core values of ethical and sustainable investment, presents an opportunity in this context. It provides an avenue to generate critical finance for Africa’s transition to a greener economy, closely aligning with sustainable development and climate resilience goals.
Leveraging this ethical financing approach can help bridge Africa’s climate funding gap, enhance the continent’s climate response and encourage sharia compliant investments.
It is against this backdrop that GBS Africa and partners are hosting a thought leadership discussion taking place on May 31, 2024, from 8:30 a.m. to 1300 p.m., on the margins Africa Development Bank Annual General Meetings.
This session is designed to bring together influential stakeholders from both the government and private sectors, featuring a lineup of expert speakers who will share their invaluable insights and diverse experiences from across different regions.
These gatherings promise to facilitate a dynamic exchange of knowledge and innovative strategies aimed at promoting collaboration towards a climate change transition strategy.
