The Infrastructure Development Bank of Zimbabwe (IDBZ)’s board of directors has approved the State-owned bank’s proposal to establish a Climate Finance Facility (CFF), meant to finance green and sustainable development projects in Zimbabwe.
IDBZ chief executive officer, Thomas Sakala, disclosed that the bank has since engaged KPMG-DMH Partners to undertake a feasibility study. The study, which will also be financed by the Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement and the United
Nations Development Programme, will guide the establishment of the CFF. This means the bank will mobilise finances locally and offshore to fight climate change.
“The CFF is intended to be a thematic fund dedicated to financing
green and sustainable development projects in Zimbabwe,” Sakala said.
“With the support from the Ministry of Lands, Agriculture, Water,
Climate and Rural Resettlement and the United Nations Development
Programme (UNDP), IDBZ contracted KPMG-DMH Partners to undertake a
feasibility study to guide the establishment of the CFF.”
The bank has begun holding consultative workshops with key players to
give inputs into the initiative.
The development comes at a time when the effects of climate change are
being felt in Zimbabwe and other parts of the world at a faster pace
than expected. This has seen prolonged droughts, extreme temperatures
as well as severe storms that have heightened food insecurity.
Several other African countries including South Africa, Namibia,
Rwanda and Ethiopia have established CFF.
Early this year, Zimbabwe, alongside Mozambique and Malawi,
experienced Cyclone Idai which killed thousands of people and
displaced many. Experts, however, could not rule out more such
calamities, saying CFF will be key in dealing with such natural
disasters in Zimbabwe.