Africa loses up to 15% of its GDP per capita yearly

Climate change and its effects have caused Africa to lose between 5 and 15% of its GDP per capita growth, but the continent still needs about $1.6 trillion between 2022 and 2030 to make up for its nationally determined contributions, according to Kevin Urama, acting chief economist and vice president of the African Development Bank Group.

Urama encouraged developed countries to close the “climate financing gap” at a panel discussion titled “African Countries Ownership in Determining Climate Agenda” that took place on the fringes of the Egypt International Cooperation Forum(link is external) (Egypt-ICF 2022) on Wednesday in Cairo.

At the event, the bank was represented by a number of top executives, including Dr Kevin Kariuki, vice president for power, energy, climate change, and green growth, and Mr Solomon Quaynor, vice president for the private sector, infrastructure, and industrialization.

“Collectively, African countries received only $18.3 billion in climate finance between 2016 and 2019,” Urama said. “This results in a climate finance gap of up $1288.2 billion annually from 2020 to 2030.”

The chief economist added: “These sums reflect how the crisis is. Climate change affects Africa severely, while the continent contributes to only 3% of global emissions. The global community must meet its $100 billion commitment to help developing countries and African economies to mitigate the impacts of climate change and to adapt to it. Investing in climate adaptation in the context of sustainable development is the best way to cope with the climate change impacts, adding that gas must remain included in the continent’s plan for the gradual transition to clean energy.”

Urama emphasised that since the 1850s, nations have been able to move away from coal and toward greener forms of energy. Additionally, he reaffirmed that the private sector, particularly banks, could take advantage of the enormous potential for green investment opportunities in Africa.