Mr. Ken Ofori-Atta, Chairperson of the Board of Governors of the African Development Bank (AfDB), Ghana’s Finance Minister, has disclosed that Africa needs about $3 trillion to mitigate its climate change vulnerabilities.
Africa faces the most significant risks to climate change; hence, financial support from international donors is needed to fund adaptation, the Intergovernmental Panel on Climate Change (IPCC) in its latest report revealed.
“Africa now needs close to $3 trillion in additional resources to finance the implementation of nationally determined contributions (NDCs) and reduce climate vulnerabilities.”
Mr. Ofori-Atta
Mr. Ofori-Atta, again indicated that the continent need roughly $66 billion to meet its health financing needs and $39 billion to improve access to education. He said this in recognition of the development and financing gap, which the United Nations Economic Commission for Africa (UNECA) pegs at $1.7 trillion.
Africa’s infrastructure financing gap on the rise
The continent’s infrastructure financing gap will widen approximately from $130 billion-$170 billion annually by 2025 , said Mr. Ofori-Atta.
“Given the current local and global dynamics, it has become imperative that we vigorously mobilize resources through innovative means, including the digital space. As worldwide momentum around climate action accelerates, we need our development institutions to guide a pragmatic transition for Africa that balances our developmental aspirations with realistic net-zero targets.”
Mr. Ofori-Atta
Africa is responsible for under four percent of global emissions but is disproportionately affected by climate change and the actual opportunity cost of meeting COP26 targets. However, he lamented that Africa attracted less than one percent of global green bond issuances, estimated at $600 billion, despite the vast opportunities for green investments.
He said only 21 African countries have access to the external capital markets, which is costly, adding that African countries pay higher interest rates than their peers with similar or worse economic fundamentals.
He, therefore, urged AfDB to remain committed to providing competitive financing for its members to close the widening development and financing gap.
Mr. Adesina said the Bank’s Group would continue to support Africa gain freedom holistically.
“Positioning our Bank to crowd in the needed finance for climate must continue to engage our attention, mainly because the prospects of being left with ‘stranded assets’ is an emerging concern in the African climate change debate.”
Mr. Adesina
Achieving Climate Resilience and a Just Energy Transition for Africa
These assertions were made at the opening of the 2022 annual meetings of the Board of Governors of AfDB in Accra. The week-long event is being held on the theme: “Achieving Climate Resilience and a Just Energy Transition for Africa” and will feature discussions on addressing the continent’s energy transition challenges.
Climate change vulnerabilities are the degree to which humans, natural organisms, and the physical environment are susceptible to and unable to cope with the adverse effects of climate change. The vulnerabilities include more frequent and intense drought, storms, heatwaves, rising sea levels, melting glaciers, and warming oceans, which directly harm animals, destroy the places they live, and wreak havoc on people’s livelihoods and communities.
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