eBusiness Weekly
Business Writer
African nations are facing an “inflection point” as they navigate the complex and often conflicting demands of climate action and economic stability, Claver Gatete, United Nations under-secretary-general and executive secretary of the Economic Commission for Africa (ECA) has said.
Speaking during the 56th Session of the Conference of Ministers of Finance, Planning and Economic Development in Victoria Falls, Gatate said despite contributing only 3 percent of global greenhouse gas emissions, the continent was bearing the brunt of climate change’s impacts.
“There is a lot at stake on the options we choose,” he said, acknowledging the difficulty in balancing the need for climate action with the harsh economic realities facing many African countries.
He said US$1,8 trillion is needed annually for climate action in Africa by 2030, alongside US$1,2 trillion for development financing.
However, shrinking fiscal space and rising debt levels are posing significant hurdles.
At 2,7 percent growth in 2023, and a projected 2,4 percent in 2024, with inflation near 20 percent, the future seems bleak, said Gatete.
Debt levels have reportedly risen by over 180 percent since 2010, putting 21 countries at risk of or in debt distress.
Compounding the issue is the annual loss of at least 5 percent of the gross domestic product attributed to climate change, further straining resources and squeezing out the private sector.
Highlighting the annual debt repayments of nearly US$100 billion, he asked how finance ministers can allocate resources when basic needs are already under pressure.
He said it was clear that governments can no longer guarantee social safety nets while emphasising the urgency of ensuring no one is left behind in the face of these challenges, acknowledging the potential for failing future generations.
