AfDB: Green labels alone won’t secure project financing

01 / 11 / 2026

By Marwa Nassar - -

Abdourahmane Diaw, Country Manager for the Egypt Country Office at the African Development Bank (AfDB), said classifying a project as green does not automatically qualify it for financing, stressing that projects must demonstrate commercial viability, meet minimum financing standards and satisfy due diligence requirements to attract investment.

Speaking at a session titled “How Can Sustainability Projects Become Bankable and Investment-Ready? — From Concept to Finance” during Egypt Sustainable Business Week, Diaw said turning environmental ambitions into viable, investable projects requires more than funding, pointing to the need for sound project preparation, operational and financial readiness, and clear risk-mitigation mechanisms.

He said the AfDB offers a range of instruments to support projects during the preparation stage, including grants, concessional loans and technical assistance. These tools help improve project readiness for financing and investment while reducing implementation and operational risks.

Mobilizing private-sector financing:

Diaw said the bank works to mobilize grants, support project preparation and ensure bankability, enabling the private sector to play a greater role in financing sustainable development.

He stressed the importance of government support in encouraging private-sector participation in sustainable investment.

Measuring impact, managing risks:

Diaw underscored the need for clear mechanisms to measure projects’ environmental and operational impact, monitor performance and verify that targets are met.

He said projects must also demonstrate reliable operations, cost efficiency, available financing mechanisms and effective risk-sharing arrangements to secure funding, ensure efficient resource allocation and support long-term sustainability.