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Budgetary allocations are among the largest and most well-suited mechanisms for financing adaptation activities in Africa. A UNDP report in 2017 found that African governments are already spending a considerable share of their budget on adaptation. The study takes an approach of calculating total weighted adaptation expenditure using standardized Adaptation Benefit Share (ABS%) value applied across all countries. The ABS% reflects the proportion public expenditures that relate to adaptation, rather than routine development. The study estimates that for 42 African countries where data was available, the total weighted adaptation expenditure was around 0.18% of GDP, and the unweighted expenditure was around 3.4% of GDP, both higher than the share of adaptation finance received from international donors. The report also noted that this level of expenditure meets around 20% of the total adaptation need, leaving an overall gap of 80% while some vulnerable countries face a gap of more than 90%. The study emphasizes that the share of 20% is disproportionate to the share of GHG emissions of African countries and calls for a boost in global investments in Africa.

A recent CPI report, The Landscape of Climate Finance in Kenya, finds that in fiscal year 2017-2018, the Kenyan government disbursed USD 700 million in climate-related development expenditures, of which 30% (USD 200 million) were spent on solely adaptation sectors, and an additional 20% (USD 140 million) for activities with dual mitigation and adaptation outcomes. Approximately USD 110 million was tracked in the water and wastewater management category, followed by agriculture, forestry, land-use, and natural resources (USD 50 million), disaster risk management (USD 18 million), and health (USD 16 million).

Similarly, the South African government accounted for USD 640 million, or 15% of the tracked disbursements in the South African Climate Finance Landscape 2020 for fiscal year 2017 and 2018. More than 80% of these direct South African Government disbursements were focused on adaptation and dual benefit sectors. The water conservation, supply and demand sub-sector was the second-largest recipient for adaptation finance, averaging USD 90 million annually or 30% of tracked adaption finance.

 Dynamic and expansive risk appetite Risk Appetite

Dynamic and expansive risk appetite.

 Stronger mandate to embed climate change in investment decisions Climate Mandate

Stronger mandate to embed climate change strategy in investment decisions; climate harming investments prohibited.

 Restricted funding sources and limited ability to leverage funds Ability to Raise Funds

Limited mandate to embed climate change strategy in investment decisions; climate harming investments prohibited.

 Ability to determine funding mandate, with some limits Flexibility to Deploy Funds

Ability to determine funding mandate and flexibility on types of vehicles, with some limits on one or both.
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This project has been developed in partnership with the Global Center on Adaptation

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