African GDP down a tenth due to climate change

Africa has been losing between 5 to 15 per cent of its GDP per capita growth because of climate change and its related impacts, according to African Development Bank Group (AfDB) acting chief economist and VP Kevin Urama.

Speaking at the panel "African countries ownership in determining climate agenda" at the Egypt International Cooperation Forum (Egypt-ICF 2022) in Cairo on Wednesday, Urama urged developed nations to bridge the “climate financing gap”.

“Collectively, African countries received only $18.3bn in climate finance between 2016 and 2019” Urama said. “This results in a climate finance gap of up $1288.2bn 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 per cent of global emissions. The global community must meet its $100bn commitment to help the developing countries and African economies to mitigate the impacts of the climate change and to adapt to it.”

The Forum took place as AfDB is issuing a 200m SA rand (ZAR) one-year green bond, arranged by Daiwa Capital Markets Europe and sold in a private placement format to a single Japanese institutional investor, Sony Bank, in support for green financing in African countries.

The first AfDB green bond denominated in ZAR, the funds raised through this transaction will be used to finance eligible green projects.

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