The Green Leap – Project bankability takes centre stage

The report argues that enhancing project bankability should become a main policy priority as part of climate investment endeavors.

• Too few African climate investment-related projects reach financial close, with around 80% of infrastructure projects failing at the feasibility plan stage. The high failure rate leaves African institutions with significant project preparation costs, contracting burdens, and limited capacity to attract further private investment.
• Bankability requires astute project preparation and the effective use of public funding and policy to mitigate project risks. Furthermore, external support can take the form of technical assistance and capacity building to leverage blended financing.
• Innovative financing mechanisms have the potential to ease fiscal pressures and unlock the necessary funding to support climate adaptation and mitigation measures.