Browsing: Climate change crisis in Africa

• Africa’s maritime trade, which hit $22Bn in 2018, will reach $48Bn by 2063 but relies heavily on fossil fuels.
• Shipping fuels global warming and is responsible for 2.5 per cent of greenhouse gas emissions.
• Africa urged to include maritime decarbonisation in NDCs for a greener future.

Africa’s maritime trade continues to grow exponentially. However, in light of the climate change crisis and the continent’s vulnerability, deliberations on decarbonising Africa’s maritime transport have emerged. During the Africa Climate Summit (ACS) in Nairobi, Kenya, a key focus point of the Nairobi Declaration was the urgent need to “accelerate all efforts to reduce emissions to align with goals outlined in the Paris Agreement.” Further, world leaders were urged to support and rally behind the proposed global carbon tax on fossil fuel trade and maritime transport.

During the summit, the “Creating Sustainable Pathways in Africa” session sought to realise eco-friendly shipping and economic growth …

• The Middle East and Africa cold chain market will expand by 7.4% to $35.1 Billion by 2028.
• Over one third of food from Africa is lost to spoilage or wastage partly due to poor storage capacity.
• Studies show that leading cause of food wastage is spoilage due to lack of cold storage systems.

The demand for cold storage supply chain products in Africa is rapidly growing. The segment has been tipped as critical in solving the food insecurity crisis ravaging the continent of 1.4 billion people. Rise of cold storage systems is also attributable to growing demand from consumers as Africa’s urbanization and modernization intensifies.

According to Market Data Forecast, the size of the Middle East and Africa (MEA) cold chain market will expand at a CAGR of 7.4 per cent to $35.1 billion by 2028 from 23.8B of 2022. The bellwether for this trajectory has been the rapid emergence …

The debt-for-nature swaps concept has emerged as a viable solution to address Africa’s ‘poly-crisis’ marked by debt distress, climate change, and biodiversity loss. In light of this, Gabon recently launched an initiative termed Africa’s first debt-for-nature swap.

The Central African nation intends to buy up at least $450 million of its government debt and convert it into an eco-friendly blue bond. This is with a tender offer for its sovereign dollar-denominated bonds maturing in 2025 and 2031, prompting the Eurobonds to rise as much as 2.2 cents on the dollar.…

• Africa’s green bonds market is growing rapidly as the continent increases issuances to power transition to  green energy.
• The Green and Resilience Debt Platform (GRDP) has been established to address climate financing gaps in Africa.
• Countries will now have access to $2B in green debt capital markets via the Platform, thereby bolstering resilience against climate change shocks. 

The green bonds market in Africa is showing strong signs of growth as countries move to tackle climate change. The sector is registering a renewed momentum attracting investments in response to the continent’s vulnerability to climate change crisis. For instance, the Nordic Development Fund (NDF) has granted EUR 500,000 to the Green and Resilience Debt Platform (GRDP).

The Fund was established by the UNDP in partnership with UNCDF, European Investment Bank (EIB), Green Climate Fund (GCF) and the European Union’s Global Green Bond Initiative (GGBI). The platform is working with various stakeholders to …

Africa has stumbled headlong into what has been called the ‘perfect storm’’. From the heavy burden of debt servicing, the instability created by election cycles, geopolitics and war as well as the lingering threat of food insecurity caused by conflict and adverse weather conditions. Seemingly, the proverbial pandora’s box of horrors has been let ajar and the evils through different manifestations are ravaging the continent from all corners. However, as the Greek myth holds, only one thing is said to have been left in the box after it was shut; hope. Amid all the daunting troubles Africa is facing, hope for a better and prosperous Africa is the fuel to help the continent weather these ominous challenges.

We explore some of these existential challenges and some plausible solutions thereof.

Political Instability in Africa

Africa is no stranger to political instability and civil unrest which has stagnated most economies and impeded …