eBusiness Weekly
Enacy Mapakame
Zimbabwe and the rest of the region are expected to benefit from climate relief funds after the United Kingdom announced a significant increase in its financial support to African countries that bear the brunt of climate change.
Climate change has a disproportionate impact on the 37 poorest and least creditworthy countries in Africa. Nine out of 10 most vulnerable countries to climate change are in Africa.
Extreme climatic events such as flash flooding and drought have caused a reduction in production, increasing the country’s appetite to borrow and exerted pressure on national budgets.
The United Nations Development Programme (UNDP), also indicated that climate change is a key driver in the recent increases in infrastructure damage, droughts and other weather-related catastrophes and this results in a decrease in revenue, increase in public spending and consequently leading to public debt. This is not prevalent in Zimbabwe alone, but a challenge across the region with countries like Mozambique experiencing flash flooding almost on an annual basis.
In 2019, Zimbabwe together with Mozambique and Malawi were affected by Cyclone Idai that claimed 1300 lives and an estimated US$773 million worth of infrastructure damage.
Housing, agriculture, transport and energy infrastructure were severely damaged in the Eastern Highlands of Zimbabwe resulting in supply chain disruptions.
World Bank estimated US$1,1 billion would be required to restore damaged infrastructure and livelihoods.
Now, the United Kingdom has pledged to increase funding towards climate resilience initiatives in Africa.
Speaking alongside African leaders at the COP27 in the Egyptian city of Sharm El Sheikh, British Foreign Secretary James Cleverly confirmed the UK will provide £200 million to the African Development Bank Group’s Climate Action Window, a new mechanism set up to channel climate finance to help vulnerable countries adapt to the impacts of climate change.
A number of countries on the continent have experienced extreme weather conditions from severe drought in Somalia to floods in South Sudan.
Foreign Secretary James Cleverly said: “Climate change is having a devastating impact on some of the poorest countries in Sub-Saharan Africa but historically they have received a tiny proportion of climate finance,” said Cleverly adding, “This new mechanism from the African Development Bank will see vital funds delivered to those most affected by the impacts of climate change, much more quickly.
“Access to climate finance for emerging economies was a central focus at COP26 in Glasgow and I’m pleased to see tangible progress being made, supported today by £200 million of UK funding,” he said.
The Glasgow Climate Pact included a commitment from donors to double adaptation finance between 2019 and 2025.
President of the African Development Bank Group, Dr Akinwumi Adesina, welcomed the additional funding from the United Kingdom.
“I applaud the UK government for this major contribution towards the capitalisation of the Climate Action Window of the African Development Fund, as it seeks to raise more financing to support vulnerable low-income African countries that are most affected by climate change. This bold move and support of the UK will strengthen our collective efforts to build climate resilience for African countries. With increasing frequencies of droughts, floods and cyclones that are devastating economies, the UK support for climate adaptation is timely, needed, and inspiring in closing the climate adaptation financing gap for Africa,” he said.
