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UN predicts Africa will be $2.5 trillion short of climate finance by 2030

Published

10 months ago

March 5, 2024

According to a United Nations official, Africa has contributed the least to greenhouse gas emissions but is suffering some of the worst effects, adding that by 2030, the continent would lack $2.5 trillion in funding to deal with climate change.

During a seminar in Victoria Falls, Zimbabwe, head economist, of the United Nations Economic Commission for Africa, Hanan Morsy, warned about the repercussions of underfunding clean energy, pointing out that Africa only receives 2% of global investments in the field and needs $2.8 trillion by 2030.

“We end up in a vicious circle with investment shortfalls increasing exposure risk and worsening impact, further eroding fiscal space, and raising finance costs,” she said.

Climate change costs African countries 5% of GDP yearly, even though their emissions are lower than those of other continents, according to Morsy.

According to joint UN-African Union research released last year, each African produced 1.04 tonnes of carbon dioxide emissions on average in 2021—less than a fifth of the global average. According to the paper, during the period of 1991–2022, the average rate of warming in Africa was 0.3 degrees Celsius each decade, while the global rate was 0.2 degrees.

“The situation is further compounded by heavy public debt,” Morsy said, adding that African countries pay 1.7 percentage points higher interest on debt than other countries.

“Countries are spending more on servicing their debt than on climate action.”

“We must address the issue of unfair risk perceptions and credit ratings that offer Africa limited borrowing options,” UNECA Executive Secretary Claver Gatete said.

Citing data from the UN Development Programme, he calculated that Africa was losing as much as $74.5 billion due to the subjectivity of credit ratings.

Related Topics:Climate Finance Featured UN

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Moroccan annual inflation rises to 0.8% in November

Published

23 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”