Representatives from governments and institutions have joined forces in advocating for innovative instruments aimed at fostering climate action and addressing Africa’s current debt crisis. The call comes amidst a push for the continent to capitalize on the transition towards sustainable green economies.
During a Ministerial segment at the ongoing 56th Session of the Conference of Ministers of Finance, Planning, and Economic Development in Victoria Falls, Zimbabwe, participants, including the Economic Commission for Africa (ECA), emphasized the urgent need for innovative approaches.
A spectrum of innovative instruments was proposed, including debt-for-nature swaps, regional blue bonds, regional carbon markets, and the utilization of natural capital accounting, among others.
President Emmerson Mnangagwa of Zimbabwe, speaking during a session on Tuesday, highlighted the increasingly constricting effects of climate change on African countries’ sustainable utilization of their abundant natural resources. Mnangagwa stressed the importance of adopting multifaceted strategies to foster inclusive green economies, aiming not only at poverty eradication but also at preserving ecological thresholds vital for human development and well-being.
Mnangagwa emphasized the necessity for collaboration and partnership between governments and the private sector to develop investment strategies geared towards inclusive green economies beneficial to communities.
Echoing these sentiments, Claver Gatete, the Executive-Secretary of the ECA, underscored Africa’s critical juncture, marked by challenges such as food insecurity, fiscal constraints, escalating debt burdens, and the adverse impacts of climate change. Gatete stressed the imperative for countries to accelerate regional integration efforts through initiatives like the African Continental Free Trade Area (AfCFTA) and the Single African Air Transport Market to bolster competitiveness and reduce business costs across the continent.
Gatete further highlighted the alarming increase in African debt, which has surged by over 180% since 2010, with twenty-one countries currently at risk of or in debt distress. He emphasized the urgent need for reforming the global financial architecture to better serve Africa’s needs, advocating for governance reforms and addressing unfair risk perceptions and credit ratings.
Monique Nsanzabaganwa, Deputy Chairperson of the African Union Commission, emphasized the challenges faced by Africa in delivering its Agenda 2063 amid global complexities, urging continued exploration of synergies to mobilize resources and secure long-term financing for sustainable development.
Mthuli Ncube, Zimbabwe’s Minister of Finance and Investment Promotion, reiterated the continent’s challenges, including limited fiscal space, increasing public debt, economic fragility, and the negative impacts of climate change. He emphasized the importance of domestic resource mobilization and the implementation of initiatives like the AfCFTA to stimulate manufacturing and trade on the continent.
Rebecca Amuge, Ambassador of Uganda to Ethiopia and Chair of the outgoing Bureau, emphasized the importance of investing in inclusive green transition priorities and leveraging Africa’s natural resources. She called for the adoption of green policies and the reform of the global financial architecture to alleviate Africa’s debt burden and promote inclusive economic growth.
The collective advocacy for innovative solutions underscores the pressing need for concerted efforts to address Africa’s economic challenges while advancing climate resilience and sustainability across the continent.
Credit: News Agency of Nigeria (NAN)
