About AFWA
Why adaptation finance? Why Africa?
Africa is on the front lines of climate change. Rising heat, prolonged droughts, devastating floods, tropical cyclones, and coastal erosion are putting mounting pressure on communities, infrastructure, and economies.
The scale of need is immense: the continent requires at least USD 70 billion annually for adaptation, yet tracked flows reached only USD 14.8 billion in 2023. Of this, less than 10 percent came from private sources.
This imbalance underscores the urgency of unlocking new sources of capital. Public finance, while vital, cannot alone meet the scale or speed required, particularly as official development assistance (ODA) to Sub-Saharan Africa is projected to decline by up to 28% through 2025.
Without urgent action, climate damages could cost Africa up to 20% of GDP by 2050, and as much as 64–80% by 2100. The gap between Africa's adaptation needs and available finance is growing each year. Current flows cover barely one-fifth of annual requirements, leaving a gap of more than USD 55 billion.
Despite these challenges, Africa also represents one of the world’s most significant opportunities for climate-resilient investment. Rapid urbanization, a growing population, and rising demand for infrastructure, food, and energy create strong fundamentals for scalable adaptation solutions. Yet private investment in adaptation remains limited due to real and perceived risks: political and physical climate risks, high costs of capital, and underdeveloped financial markets.
Adaptation Finance Window for Africa
Building on its successful previous blended finance funding windows, the Investment Mobilisation Collaboration Alliance (IMCA) is launching the Adaptation Finance Window for Africa (AFWA) to directly address the region’s acute adaptation financing gap.
AFWA will deploy catalytic capital to support innovative investment vehicles that mobilize private capital for climate adaptation and resilience—demonstrating replicable models that can guide future market growth and resilience across the continent.
