Denmark has just announced its largest contribution to the African Development Fund with a sum of 785 million Danish kroner. The goal of this significant investment is to promote green energy and combat poverty in Africa. Minister for Development Cooperation and Global Climate Policy, Dan Jørgensen, emphasizes that the funds will support projects such as the hydropower plant on the border between Tanzania and Malawi. The initiative integrates development goals with climate actions, where green energy plays a central role. “This initiative represents a serious recognition that development policy and climate change are interconnected,” says Dan Jørgensen.
In addition to promoting green electricity, the fund will also address climate adaptation, strengthening governance, institution building, and debt management in African nations. A significant challenge in aid efforts is balancing economic growth with climate considerations. “There are 600 million Africans without access to electricity. Without electricity, growth and development are impossible,” explains Jørgensen. Therefore, Denmark ensures that energy development focuses on sustainable solutions.
Currently, Dan Jørgensen is participating in the African Development Bank’s annual meeting in Nairobi, Kenya. Here, he is working to ensure that Danish funds are targeted towards initiatives that align with Denmark’s visions for sustainability. “It is pleasing to see that there is broad support for our priorities,” emphasizes the minister. The African Development Bank utilizes the provided funds both as grants and as guarantees for loans. This enables larger loans to be issued, enhancing the economic impact of Denmark’s contribution. The bank offers loan facilities with low or no interest rates as well as direct assistance to the 37 poorest countries in Africa.