CDM Funding in Africa

Funding remains the primary obstacle in CDM projects in Africa. Almost all of them are located in Egypt, Morocco, and the most in South Africa. These countries are relatively wealthy by African standards and conventional financing is available. The demand for projects exist, however many ideas do not get off the ground because of a lack of initial investment. If a project is bankable, there is a good chance that consultants, brokers, and carbon credit buyers will invest in order to obtain contracts of advance credits. While many believe that investing in Africa is risky, the CDM benefits cannot be ignored. CDM development costs are typically a maximum of 100,000 euros and the returns average 300,000-500,000 euros a year. This is all just CDM cash flow, this does not include what products the projects actually hope to provide. In the case of Agritech it is bio-fuel and food crops, which are the primary source of revenue. All that is really necessary is seed money to tap into the potential of many African CDM projects.
According to the World Bank, CDM revenues are the largest source of mitigation finance to developing countries. From 2001-2012 CDm projects could raise as much as $24 billion in direct carbon revenue.