Climate Change: Africa Needs $2.8trn As Debt Profile Worsens – Independent Newspaper Nigeria

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AKURE – For Africa to tackle chal­lenges posed by climate change, it has been pro­jected that the continent would need an estimated $2.8 trillion between 2020 and 2030.

Harrison Rehoboth Consult­ing presented this in its new policy analysis on what it would take to effectively meet the Paris Agreement.

According to the analysis, Africa needs about $277 billion annually to implement climate adaptation and mitigation proj­ects which is aimed at reducing the devastating impact of floods, droughts, desertification and other environmental challeng­es threatening livelihoods across Africa caused by climate change.

Spokesperson to the con­sulting firm, Femi Sekoni, dis­closed that such a huge fund is required with a view to help­ing African nations strengthen their infrastructure, protect vulnerable communities, im­prove food security, expand re­newable energy and transition to cleaner and more sustainable economies.

He noted that Africa relies on foreign support for financing despite the rising climate crisis, noting domestic investors only contribute a little fraction to­wards financing the fight against climate challenges.

The analysis revealed that lo­cal institutions, including banks, pension funds, insurance firms and private investors contribute only about 10 percent of climate finance flowing into Africa, while international organisa­tions and development partners are responsible for the larger shunk.

Further revelations in the report stated that climate fi­nancing is unevenly distributed across African nations, stating that countries such as South Af­rica, Egypt, Nigeria, Morocco and Kenya attract a significant percentage of available funding due to their stronger financial systems and investment struc­tures.

Many African countries are noted to be facing severe climate threats yet are unable to attract large-scale funding as a result of weak institutions, limited proj­ect preparation capacity, policy uncertainties and concerns over investment risks.

Concerns are raised on the financing available to African countries, warning that a large portion of the funds comes in the form of loans rather than grants or concessional financing.

The report noted that this type of financing could aggra­vate the debt burden of sever­al African nations, which are already struggling with rising debt-servicing obligations and economic pressures.

It stated that repayment of such loans are difficult because climate adaptation projects such as flood control systems, drought resilience programmes and coastal protection infrastructure often provide social and environ­mental benefits and generate lit­tle direct revenue.

The report noted there is a need for wealthier nations to provide more grant-based sup­port to vulnerable countries to face the harsh effects of climate change.