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Africa lost 5% -15% GDP due to climate change – AfDB

Published

2 years ago

September 13, 2022

The African Development Bank (AfDB), has revealed that climate change has caused Africa to lose between 5% and 15% of its GDP (gross domestic product) per capita growth annually.

Group Acting Chief Economist and Vice President of AfDB Mr. Kevin Urama made the disclosure in a statement posted on the bank’s website.

Urama stated that in order for Africa to fulfill its nationally decided commitments, 1.6 trillion dollars will be required between 2022 and 2030.

Urama said, “Africa has been losing from 5 to 15% of its GDP per capita growth because of climate change and its related impacts, but needs about $1.6 trillion between 2022 and 2030 to meet its national determination contributions.

“Collectively, African countries received only $18.3 billion in climate finance between 2016 and 2019.

“This results in a climate finance gap of up $1288.2 billion annually from 2020 to 2030.”

“These sums reflect how the crisis is. Climate change affects Africa severely, while the continent contributes to only 3% of global emissions. The global community must meet its $100 billion commitment to help developing countries and African economies to mitigate the impacts of climate change and to adapt to it.

“Investing in climate adaptation in the context of sustainable development is the best way to cope with the climate change impacts, adding that gas must remain included in the continent’s plan for the gradual transition to clean energy.”

According to a report by Statista in May, Nigeria’s GDP amounted to 441.5 billion U.S. dollars in 2021, the highest in Africa. To follow, South Africa’s GDP was worth 418 billion U.S. dollars and ranked as the second-highest on the continent. After Egypt, the third largest economy, two other North African countries – Algeria and Morocco – came next on the list.

Africa is rich in natural resources ranging from arable land, water, oil, natural gas, minerals, forests, and wildlife.

African economies are growing fast. Among the countries with the highest GDP growth rate worldwide, African nations dominated the ranking.

Related Topics:Adeshina AFDB Africa Featured

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IMF mission concludes 4th loan program assessment in Egypt

Published

3 days ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

5 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.