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Enhancing Climate Change Resilience Through Microfinance: Redefining the Climate Finance Paradigm to Promote Inclusive Growth in Africa

Poverty, inequality, unemployment, and unsustainable resource consumption are prevalent in Africa due to a lack of inclusive growth. The impacts of climate change are also considered to have hindered progress on achieving the Millennium Development Goals. Through literature reviews and policy analyses, this article presents suggestions on how inclusive growth can be attained in the post-2015 development agenda, and also presents a framework to enable microfinance institutions to promote both inclusive growth, and climate change mitigation and adaptation. The article shows that microfinance can support the mobilization of resources for climate change programs; hence, financial inclusion should be incorporated in climate change policies.