Stakeholders Seek More Funding For SMEs
At the 2024 Green Finance Conference, stakeholders have seeked more funding for Small and Medium Scale Enterprises, as well as more effective strategies for addressing climate change challenges.
The conference, held in Lagos recently, had the theme ‘The Role of Africa’s Private Sector in The Paris Agreement on Climate Change’ and was organised by the African Guarantee Fund in partnership with the Nordic Development Fund.
According to a statement from the organisers on Monday, the Green Finance Conference established a platform for all stakeholders, including government representatives, senior executives of financial institutions, and key regulatory-policy stakeholders, to dialogue and showcase the many advantages that Green SMEs could contribute to the economy of Nigeria.
While speaking at the opening ceremony, AGF Group Chief Executive Officer, Jules Ngankam, noted that the Green Finance Conference is a crucial response to the challenges posed by climate change within a framework of National Determined Contributions with a focus on providing enhanced expertise to Africa.
Ngankam said, “Our aim is to support the banks to improve, increase or develop their green portfolios. Through the combination of our Green Guarantee and Capacity Development support, we are able to bridge the knowledge gap between both financial institutions and their customers. This is not only for the SMEs to understand how the lending process works, but also for the financial experts to learn how they can provide solutions tailored to suit the needs of the SMEs."
With NDF’s support, the AGF further expressed that it had been able to support financial institutions through its risk-sharing mechanism, which is crucial to incentivising banks to provide climate finance to SMEs.
According to NDF Managing Director, Satu Santala, “We are committed to financing green and inclusive low-carbon and climate-resilient growth of African economies to improve the livelihood of communities. “Partnerships are at the core of NDF’s approach to climate finance and the African private sector plays a pivotal role in climate action and creating employment.”
In his welcome address, the President of the Chartered Institute of Bankers of Nigeria, Dr Kenneth Opara, stressed the important role the private sector plays in climate change in the Paris Agreement, emphasising that the private sector plays a pivotal role in unlocking new growth, job creation and sustainable agriculture.
Opara said, ‘’We hope that climate change efforts will unlock new opportunities for green growth and job creation, ranging from renewable energy and clean technology to sustainable agriculture. There are countless avenues for the private sector to get the required private solution that deliver environmental, social, and economic benefits.”
A Special Adviser to The Lagos State Government on Climate Change and Circular Economy, Mrs Titilayo Oshodi, while speaking on behalf of the Secretary to the State Government, stressed the importance for more awareness on the effect of climate change.
She said, “It is a resultant factor in how we begin to deal with our environment, how we begin to play, what shots are required of us to keep our environment healthy, to keep it safe and climate-friendly. We need to start to express the inherent opportunities in terms of wealth that is available in the wealth that we generate."