Challenges and Opportunities in Loan-based Finance in Africa
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Questions and Answers

What role can loan-based finance play in Africa's infrastructure development?

  • Providing grants for infrastructure needs
  • Promoting fintech innovations
  • Supporting innovative financing models
  • Funding infrastructure development projects (correct)

How do risk-sharing mechanisms benefit climate finance?

  • Mitigate risks and attract private capital (correct)
  • Increase perceived risks of climate projects
  • Enhance overall instability of investments
  • Reduce the feasibility of projects

What is the main purpose of the Green Climate Fund (GCF) guarantees mentioned in the text?

  • Promote the development of fossil fuel projects
  • Attract private investment by increasing risks
  • Provide protection against potential losses (correct)
  • Offer various types of grants for climate projects

Which of the following initiatives is explicitly mentioned as working to improve access to finance in Africa?

<p>African Continental Free Trade Area (AfCFTA) (C)</p> Signup and view all the answers

How do innovative financing models differ from traditional loan-based finance?

<p>They leverage other sources of capital alongside loan-based finance (A)</p> Signup and view all the answers

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