Economic gathering in Africa commences discussions on financial matters

Economic gathering in Africa commences discussions on financial matters

Looming Climate Crisis Sparks Call for Tech Solutions in Africa

The 2022 African Economic Conference (AEC) wrapped up in the lush landscapes of Mauritius, leaving a resounding emphasis on the need for Africa to embrace advanced technologies in combating the imminent climate challenge.

"The need to back climate-smart development in Africa is paramount. Africa is staring down the barrel of climate change. The continent is the most susceptible to climate catastrophes," Prime Minister of Mauritius, Pravind Kumar Jugnauth, asserted during the conference opening.

Prime Minister Jugnauth noted the surge in oil prices due to the war in Ukraine should escalate Africa's impetus to wave farewell to fossil fuels and strive for self-sufficiency in clean energy production. "To tackle climate change more efficiently, Africa needs the backing of development partners," he added.

Under the theme 'Climate-Smart Development in Africa: A Necessity', the conference brought together diverse stakeholders, including policymakers, climate experts, the private sector, researchers, and youth, to deliberate on and draft an action plan supporting low-carbon, climate-resilient development of Africa.

Championing the call for Africa to adapt to climate change was Dr. Akinwumi Adesina, the African Development Bank President. "Africa is grappling with the colossal repercussions of climate change - from droughts and floods to irregular rainfall and pests like locusts and armyworms," he stated, read by Acting Chief Economist and Vice-President Prof. Kevin Urama.

For each year, Africa loses an approximate $7-15 billion GDP due to climate change - a figure projected to escalate to $45-50 billion annually by 2040. During COP27, the African Development Bank and its partners unveiled the Alliance for Green Infrastructure in Africa, which aims to accelerate the development of green infrastructure in Africa.

The United Nations Development Programme's Assistant Administrator and Director of the Regional Bureau for Africa, Ahunna Eziakonwa, emphasized that Africa's trailblazing the Sustainable Development Goals (SDGs) must be aligned with its climate-smart. "Safeguarding the planet cannot be a compromise; it's an urgent priority," she asserted.

Reflecting on the recently concluded United Nations Climate Change Conference, COP 27, she noted, "While COP27 in Egypt failed to deliver the steep emission reductions the world requires, it accomplished setting up funding arrangements for loss and damage."

Ms. Eziakonwa introduced the 'Africa Mini-grids' partnership between the Global Environment Facility, United Nations Development Programme, African Development Bank, and Rocky Mountain Institute. The collaboration aims to cultivate new solar battery mini-grid markets in 21 African nations.

The United Nations Economic Commission for Africa's Deputy Executive Secretary, Dr. Hanan Morsy, drew attention to the conference theme providing opportunities to absorb and digest the discussions at COP27 and devise recommendations for fortifying climate-smart development in Africa.

Morsy highlighted that Africa must close colossal development gaps by substantially investing in key sectors such as energy, agriculture, transportation, water, and urban development - all of which are highly susceptible to the adverse effects of climate change.

The Economic Commission for Africa collaborates with partners to promote the development of just energy transition plans in various African nations, capitalizing on the continent's plentiful clean energy resources. It also collaborates with the African Export-Import Bank, Africa Finance Cooperation, African Development Bank, and other partners to harness the African Continental Free Trade Area to transform the continent's minerals using clean energy resources.

"The objective is to support regional and international supply chains related to the global drive for net-zero emissions," Morsy explained.

The African Economic Conference is co-hosted by the African Development Bank, Economic Commission for Africa, and United Nations Development Programme.

Emerging Technologies and Africa's Climate Change Battle

• Debt Sustainability and Climate Goals: Linking debt sustainability with climate goals is becoming increasingly significant, particularly through multilateral cooperation and initiatives such as the Emergency Coalition for Debt Sustainability and Climate Prosperity, which aims to address these challenges.
• Carbon Market Strategy: Africa has advanced its carbon market strategy with the introduction of the Africa Carbon Support Facility (ACSF), which focuses on scaling up carbon investments across the continent by reducing risk and spotlighting high-integrity carbon markets, equity, and local impact.
• Regional Climate Weeks: In 2022, Regional Climate Weeks were held to galvanize support for climate actions across regions, building momentum before the UN Climate Change Conference COP27.
• Innovation and Evidence-Based Solutions: Harnessing emerging technologies and evidence-based solutions is crucial to tackle climate change and other development hurdles in Africa. Employing technologies like AI in domains such as healthcare, education, and governance can boost productivity and efficiency in Africa's efforts to combat climate change.
• The impetus for Africa to embrace clean energy production and wave goodbye to fossil fuels is escalating, as highlighted by Prime Minister Jugnauth during the AEC.
• The African Development Bank, along with its partners, unveiled the Alliance for Green Infrastructure in Africa during COP27, aiming to accelerate the development of green infrastructure in Africa.
• To tackle climate change more efficiently, Africa requires financial backing from development partners and private sector involvement, as noted by Prime Minister Jugnauth.
• Under the AEC, stakeholders deliberated on low-carbon, climate-resilient development for Africa, including policymakers, climate experts, the private sector, researchers, and youth.
• The United Nations Development Programme's Africa Mini-grids partnership, involving the African Development Bank, Global Environment Facility, United Nations Development Programme, and Rocky Mountain Institute, aims to cultivate solar battery mini-grid markets in 21 African nations.
• The Economic Commission for Africa collaborates with partners to promote just energy transition plans in various African nations, capitalizing on the continent's plentiful clean energy resources.
• As part of its climate change battle, Africa is pioneering a carbon market strategy through the Africa Carbon Support Facility, which focuses on reducing risk and spotlighting high-integrity carbon markets, equity, and local impact.
• Innovation and evidence-based solutions, leveraging technologies like AI in domains such as healthcare, education, and governance, can boost productivity and efficiency in Africa's efforts to combat climate change.
• The loans and grants offered by the Debt Sustainability Framework can help African nations finance climate goals, creating a more conducive environment for climate finance, as stated by the African Development Bank and the African Development Institute.

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