<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246262502-820x547.jpg" alt="" class="wp-image-422462" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246262502-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246262502-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246262502-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246262502-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246262502-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246262502-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DAVOS, SWITZERLAND &#8211; JANUARY 15: The WEF annual meeting to be held from January 16 to 20 in Davos, Switzerland on January 15, 2023. Under the theme of &#8220;Cooperation in a Fragmented World,&#8221; top figures shaping global politics and the business world will attend this weekâs 53rd annual meeting of the World Economic Forum (WEF), in Davos-Klosters, Switzerland. The meeting, which starts Monday, will bring together more than 2,700 leaders from 130 countries including 50 heads of state or government, as multiple crises deepen divisions and fragment the geopolitical landscape. (Photo by Dursun Aydemir/Anadolu Agency via Getty Images)</figcaption></figure>



Davos-Klosters, Switzerland, 17 January 2023 – Adoption of connected devices during the pandemic <a href="https://www2.deloitte.com/ch/en/pages/risk/articles/impact-covid-cybersecurity.html">led to a dramatic increase in cyberattacks</a>. According to a new report launched today at the World Economic Forum Annual Meeting 2023, if left unchecked, the cost of cyberattacks will continue to rise, threatening a <a href="https://www.cnbc.com/2022/10/11/imf-cuts-global-growth-forecast-for-2023-warns-worst-is-yet-to-come.html">fragile global economy</a>.   The report, The State of the Connected World 2023 edition, a collaboration of the World Economic Forum with the <a href="https://weforum.org/connectedworld">Council on the Connected World</a>, says the immediate threats can be mitigated through robust security protocols and governance through public-private cooperation.   The State of the Connected World is the only global report that tracks and quantifies governance gaps for the universe of connected devices, known as the internet of things (IoT). The report surveyed 270 experts around the world to understand the state of play and establish clear priorities for technology governance.    “At a time when the global economy is fragile, we have the necessary tools to reduce at least one of the major threats to the global economy – cyberattacks,” said Jeff Merritt, Head of Urban Transformation, World Economic Forum. “The State of the Connected World report is a call to action for protecting against cybercrimes, which would also improve individual security and protect small and medium-sized business, transit systems, utilities – everything that relies on connected devices.”   “Our increasingly connected existence brings with it vulnerabilities that can be exploited by malicious actors,” said Akshay Joshi, Head of Industry and Partnerships, Centre for Cybersecurity, World Economic Forum. “Despite calls for embedding cybersecurity by design, the low level of confidence in the security of connected devices expressed by experts in this report is a testament to the fact that we still have a long way to go in terms of realizing trust in the technology we use.”   The report calls for increased consumer education through digital literacy campaigns, standardization practices of cybersecurity measures, prioritizing security by design and default (as opposed to reacting after the fact) and developing more agile policies to better address the quick-changing landscape of cybersecurity.   &#8220;We find ourselves at an inflection point this year with a number of global forces putting downward pressure on the economy,” said Madeline Carr, Professor of Global Politics and Cyber Security, Department of Computer Science, University College London. “It is essential that cybersecurity challenges are not left unchecked to further exacerbate this but are taken seriously as an integrated element of a thriving global economy.&#8221;   What other experts are saying:   “Open standards in technology have always led to greater innovation and greater consumer confidence. This year’s report from the Forum really emphasizes the importance of that direction. We’re very pleased to see the focus on privacy and security as a key priority. Solving for these ensures the greatest adoption of IoT, and the greatest likelihood of landing on valuable solutions for consumers in the ever-growing connected world.” Tobin Richardson, President and CEO, Connectivity Standards Alliance   “Planned spending on a security programme costs less than unplanned spending by 10 to 100 times, so it really makes sense now to evaluate and redouble your efforts to attain and maintain a mature programme. The year 2023 is predicted to deliver a perfect storm – from expected challenging economic conditions, ransomware up over 30% from last year, cyber insurance rates dramatically rising, coverage lowering, a severe skill and staff shortage, massive growth in vulnerable IoT connected devices and security products becoming the breach vector. Now is the time to redouble your focus on your security posture.” Peter Nicoletti, Field Chief Information Security Officer of the Americas, Check Point Software Technologies   “At Schneider Electric, we envision a fully connected, net-zero world which is more electrified, digitized and sustainable for future generations. To realize this future, businesses, organizations and governments must work together to address challenges such as cybersecurity, open standards and accessibility. I’m proud of our work with these stakeholders and the World Economic Forum and commit to continued vigilance to make the needed progress.”  Scott Harden, Chief Technology Officer, Innovation, Schneider Electric   “As the world gets more connected, complex and at times unpredictable, it is critical to drive and govern the change in a way that we not only address and mitigate risks but also emphasize the positive impact that connected technology brings.”  Anton Kotov, Chief Digital and Strategy Officer, ABB Electrification, ABB   “The ongoing advancement of emerging technologies highlights the importance of establishing strong governance to ensure safe and secure use of the technology. Security, privacy, trust and interoperability among IoT devices are serious issues that need to be addressed to accelerate IoT adoption and embrace a connected world. This can be achieved through collective action from the international community and by establishment of public-private partnerships. The 2023 report on the state of the connected world highlights the current gaps in governance and paves the path to address the associated risks for the benefit of humankind.”  Mariam Nouh, Vice-President of Economies of the Future Sector, King Abdulaziz City for Science and Technology (KACST)   “In order to ensure that connected devices and related technologies are accessible and beneficial for all members of society, adaptive and sustainable governance is needed for multistakeholders to expand the boundaries of their respective scope of works, to share risk and co-invest in the digital infrastructure together.” Fanyu Lin, CEO, Fluxus   About the World Economic Forum Annual Meeting 2023 The World Economic Forum <a href="https://www.weforum.org/events/world-economic-forum-annual-meeting-2023">Annual Meeting 2023</a> convenes the world’s foremost leaders under the theme Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information, please click <a href="https://www.weforum.org/events/world-economic-forum-annual-meeting-2023">here</a>.

World Economic Forum

Unchecked Cyberattacks ‘Are Growing Threat to Fragile Global Economy’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246271238-820x547.jpg" alt="" class="wp-image-422455" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246271238-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246271238-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246271238-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246271238-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246271238-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246271238-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The logo the World Economic Forum (WEF) inside the Congress Centre in Davos, Switzerland, on Monday, Jan. 16, 2023. The annual Davos gathering of political leaders, top executives and celebrities runs from January 16 to 20. Photographer: Stefan Wermuth/Bloomberg via Getty Images</figcaption></figure>



Davos-Klosters, Switzerland, 17 January 2023&nbsp;– The World Economic Forum, supported by more than 45 partners today launched the Giving to Amplify Earth Action (GAEA), a global initiative to fund and grow new and existing public, private and philanthropic partnerships (PPPPs) to help unlock the $3 trillion of financing needed each year to reach net zero, reverse nature loss and restore biodiversity by 2050. With the energy and cost of living crises, the ambition of steering the planet towards a 1.5-degree Celsius warming pathway hangs in the balance. Meanwhile, the recent agreement at the UN Biodiversity Conference (CBD COP15) in Montreal to conserve 30% of all earth and sea looks bold but fragile in the face of a rising biodiversity crisis. Current funding is slow and inadequate, and a new approach is needed to get capital flowing. Philanthropic giving can address this, with unique qualities not found in other financing: it is nimble, more tolerant of risks and is driven by values and long-term outcomes rather than quarterly returns. “We are at a tipping point in our efforts to put the planet back on track to meet our climate ambitions. To reach the speed and scale required to heal the Earth’s systems, we need to unlock not only private capital and government funds, but also the philanthropy sector as a truly catalytic force to achieve the necessary acceleration,”&nbsp;said Klaus Schwab, Founder and Executive Chairman, World Economic Forum. GAEA’s growing body of philanthropic partners includes: Active Philanthropy, the African Climate Foundation, André Hoffmann Family Office, the Arab Foundations Forum, Bezos Earth Fund, BMW Foundation, Children’s Investment Fund Foundation, the Clean Air Fund, Climate Leadership Initiative, ClimateWorks Foundation, Eleven Eleven Foundation, the Gordon and Betty Moore Foundation, Growald Climate Fund, IKEA Foundation, Laudes Foundation, Noa’s Ark Foundation, Open Society Foundations, the Patrick J. McGovern Foundation, Pearl Initiative, Philanthropy Asia Alliance (by Temasek Trust), Philea, The Rockefeller Foundation, Trottier Family Foundation, United Nations Foundation, the Wellcome Trust, WINGS, Workday Foundation. Individuals, academic institutions, companies and public sector organizations supporting the initiative include: Cambridge Institute for Sustainability Leadership, Capital for Climate, Carbon Direct, Center on Global Energy Policy at Columbia University, Centre for Strategic Philanthropy at the University of Cambridge, Climate-KIC, Crescent Enterprises, Government of Egypt, HCLTech through their chairperson Roshni Nadar Malhotra, McKinsey Sustainability, Ocean14, Prince Maximilian von und zu Liechtenstein &#8211; Chairman of the Board LGT Group, Salesforce, Singapore University for Social Sciences, Stanford University Center for Ocean Solutions, Strategic Philanthropy Initiative at NYU Abu Dhabi, UN Environment Programme World Conservation Monitoring Centre, We Mean Business Coalition, World Association of PPP Units &amp; PPP Professionals.&nbsp; Philanthropic financing for climate mitigation has risen in recent years, but still represents less than 2% of total philanthropic giving, estimated at $810 billion in 2021. Greater philanthropic funding for climate and nature will support, not detract from, existing social priorities. As recently noted by Rajiv Shah, President, The Rockefeller Foundation: “Climate change poses a singular threat to humanity … we must directly confront climate change, even as we redouble efforts in our traditional program areas: health, power, food, and equity.” Over the next 12 months, supported by McKinsey Sustainability as a knowledge partner, GAEA will work with founding members to build momentum around three clear objectives:



<ul class="wp-block-list">
<li>Convene leaders from the public, private and philanthropic sectors to identify and target climate and nature solutions where they are best positioned to play a catalytic role&nbsp;</li>



<li>Pilot and refine funding models that can support PPPP interventions&nbsp;</li>



<li>Scale up and replicate successful approaches to new sectors, regions and actors</li>
</ul>



GAEA will build on existing examples of success. For example, the Clean Cooling Collaborative, founded with the help of an initial $10 million of philanthropic funding in 2016, has mobilized more than $600 million in public and private finance to improve equitable access to low-carbon cooling and support 4.2 gigatons of avoided CO2&nbsp;emissions by 2050. Similarly, the Government of the Seychelles has leveraged philanthropic funding, public loan guarantees and private investment to raise $15 million through a blue bond and convert $22 million of government debt into conservation funding to protect 13 marine areas, covering an area larger than Germany. Wendy Abrams, Chief Executive Officer, Eleven Eleven Foundation, said: “We need more companies, family offices, individuals and the new generation of philanthropists to get involved in the climate and nature conversation. If we do not solve this together, there will be nothing to pass on to the next generation. GAEA can be a good platform to get all the right stakeholders and amplify action at scale.” Rania Al-Mashat, Minister for International Cooperation, Government of Egypt, said: “This call to action is extremely timely, as it builds on the directions set during COP 27 in Sharm El-Sheikh, ‘the COP of implementation’ under the Egyptian presidency. We need more philanthropies to join us at the table and help scale up multilateral development bank finance to unlock private investments to accelerate the green transition. Egypt will work closely with the World Economic Forum to build effective and impactful philanthropic public private partnerships, and promote the role of the prominent ‘P’ – Philanthropy.” Per Heggenes, Chief Executive Officer, IKEA Foundation, said: “We are proud to support the launch of the GAEA initiative. The global figure of philanthropic capital for climate mitigation currently stands under 2% – and that is just not acceptable. But this is also a massive opportunity to leverage philanthropic giving for climate action. Philanthropies can play a unique role in encouraging urgent, radical and unprecedented collaboration between the public and private sectors. It’s only by working together at scale that we can unlock the investment required to achieve our ambitious climate goals and protect the planet.” Badr Jafar, Chief Executive Officer, Crescent Enterprises, said: “There is a historic opportunity to harness the full potential of philanthropic organizations, family offices and other innovative capital players, in unity with government and business to address our climate and nature goals. COP28 in the UAE will raise the bar in terms of ambition and the creation of a global architecture for all capital actors to act together at speed and at scale. The World Economic Forum and GAEA is a powerful platform and amplifier to enhance these efforts.” Helen Mountford, Chief Executive Officer, ClimateWorks, said: “By unleashing the small but mighty ‘P’ of philanthropy, we can create truly catalytic partnerships that unlock ambitious and collaborative public, private and philanthropic action to improve people’s lives.” Lim Seok Hui, Chief Executive Officer, Philanthropy Asia Alliance (by Temasek Trust), said: “Philanthropy Asia Alliance will continue to amplify its impact by supporting initiatives such as GAEA to pool our collective resources and expertise, and translate ideas into action. GAEA’s first Asia-focused key deliverable that will be launched later this year by PAA in partnership with the World Economic Forum, is a climate philanthropy report on multi-stakeholder partnerships as a force to combat complex climate challenges.” Bob Sternfels, Chief Executive Officer, McKinsey &amp; Company, said: “We are very excited to support GAEA’s aim to better connect philanthropic capital with public and private sector efforts to strengthen climate and nature solutions. Our collective hope is to accelerate thinking and action towards tipping points in these arenas, and to assure economic growth is increasingly sustainable and inclusive.”



About the World Economic Forum Annual Meeting 2023 The World Economic Forum&nbsp;<a href="https://www.weforum.org/events/world-economic-forum-annual-meeting-2023">Annual Meeting 2023</a>&nbsp;will convene the world’s foremost leaders under the theme Cooperation in a Fragmented World.

Preparations Ahead of The World Economic Forum (WEF) 2023

New Initiative to Help Unlock $3 Trillion Needed a Year for Climate and Nature

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246279791-820x547.jpg" alt="" class="wp-image-422427" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246279791-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246279791-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246279791-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246279791-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246279791-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246279791-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The logo the World Economic Forum (WEF) on a window at the Congress Center in Davos, Switzerland, on Monday, Jan. 16, 2023. The annual Davos gathering of political leaders, top executives and celebrities runs from January 16 to 20. Photographer: Stefan Wermuth/Bloomberg via Getty Images</figcaption></figure>



Geneva, Switzerland, 16 January 2023&nbsp;– A dramatic rise in the frequency and severity of wildfires is undermining efforts to reduce carbon dioxide (CO2) emissions in combating climate change. According to the United Nations Environment Programme (UNEP), 30% of the world’s population is exposed to deadly heatwaves on more than 20 days a year. The World Economic Forum launched the FireAId initiative to&nbsp;address the wildfire crisis&nbsp;in January 2022.&nbsp;Successfully piloted by Koç Holding in the South Aegean and West Mediterranean region of Türkiye in 2022,&nbsp;this wildfire risk mapping and logistic planning project improved wildfire prediction by combining static and meteorological datasets and reduced both response time and risk to firefighters. Due to its success,&nbsp;the approach is being scaled for wider use.&nbsp; “During this difficult period of growing fire seasons and climate change, we are committed to continuing and strengthening this global engagement. We hope this report will inspire you to join these efforts, which can address the key drivers of catastrophic fires, increase the pace and scale of forest management and improve the resilience of increasingly threatened communities globally,”&nbsp;said&nbsp;Jeremy Jurgens, Managing Director at the World Economic Forum. This report urges the increased use of artificial intelligence (AI) and machine learning (ML) in predicting and directing responses to wildfires and managing forests. It follows the launch of the&nbsp;<a href="https://www.weforum.org/reports/global-risks-report-2023/">Global Risks Report 2023</a>, which highlights failure to mitigate and adapt to climate change, natural disasters and extreme weather events, and biodiversity loss and environmental degradation among the top risks faced by societies.&nbsp; Wildfires have occurred naturally for millions of years and are integral to the maintenance of healthy forests. Mediterranean forests burn down entirely once every 50 years as part of their natural cycle, but climate change is making wildfires more frequent, larger and more devastating. In the US, there have been around 1.5 million wildfires since 2000, burning an average 7 million acres annually – more than double the 3.3 million acres destroyed by wildfires each year in the 1990s. California wildfires in 2020 alone burned more than 4 million acres and released almost twice the tonnage of greenhouse gases as the total CO2&nbsp;reductions achieved over 18 years since 2003 – an estimated 127 million tonnes CO2&nbsp;equivalent released compared to 65 million tonnes of reductions. Global wildfires in 2021 released an estimated total of 6,450 megatonnes of CO2&nbsp;– 148% more than total European Union fossil fuel emissions in 2020, according to&nbsp;<a href="https://twitter.com/CopernicusECMWF">@CopernicusECMWF</a>, the Copernicus Atmosphere Monitoring Service. In South Africa, the February 2021 wildfire near Cape Town burned more than 13,000 hectares and threatened the city outskirts, torching university buildings. Wildfires in Australia in 2019 and 2020 killed or displaced more than 3 billion animals. Forest lands provide the majority of freshwater supplies – in the US, 80% of the total. But wildfires severely affect water quality in rivers, reservoirs and streams. Ash settles on water surfaces, while burned landscapes may erode more quickly, increasing the accumulation of sediment in water. After a wildfire, the soil may have reduced capacity to absorb and store water, increasing the likelihood of flooding. Managing and preventing wildfires is a vital element of efforts to control climate change and protect habitats, lives and livelihoods. AI and ML show immense potential for developing a response to this crisis. Advances in AI may be applied to managing forests and fighting wildfires:



<ul class="wp-block-list">
<li>The dream of producing autonomous vehicles has driven continuous refinements in computer vision AI, which can be applied to the science of wildfire prediction</li>



<li>Developments in natural language processing (NLP) and natural language generation (NLG) have improved computers’ capacity to make predictions</li>
</ul>



Advances in data-collection methods support firefighting and wildfire risk management:



<ul class="wp-block-list">
<li>Sensors with inbuilt AI can collect acoustic information or operate as smoke detectors in forests and alert authorities within the first hour of a wildfire starting</li>



<li>Unmanned aerial vehicles (UAVs) can be flown over fires to provide live images and help firefighters plan their response</li>
</ul>



Two programmes are under development in the US to provide near-live fire information:



<ul class="wp-block-list">
<li>Google uses geostationary satellites to produce near real-time maps</li>



<li>NASA’s Fire Information for Resource Management (FIRMS) uses low-orbit satellites and software developed by the University of Wisconsin-Madison’s Space Science and Engineering Center (SSEC) to provide live fire data with a lag of just 60 seconds between Earth observation and wildfire detection</li>
</ul>



The FireAId initiative was piloted with Koç Holding in Türkiye in the wake of the worst wildfires ever recorded in the country in July–August 2021. A total of 139,503 hectares burned in these wildfires. Koç Holding, a pioneer of digitalization in the Turkish private sector, developed the pilot programme in collaboration with the Turkish Ministry of Agriculture and Forestry. It focused on the South Aegean and West Mediterranean parts of Türkiye, covering 44,000km2. One quarter of the country’s wildfires have broken out in that region, corresponding to 75% of total burned area in 2010–2021. The project was conducted in two phases:



<ol class="wp-block-list">
<li>Dynamic and static datasets were used to create a risk map, with risks categorized under two types – ignition (probability of a wildfire starting) and severity</li>



<li>The risk map was used to create a model for allocating resources most efficiently after a wildfire started</li>
</ol>



The project successfully used Koç Holding’s advanced data analytics capacity to predict wildfires and enable more efficient use of existing firefighting resources. It analysed more than 400 variables using its AI-based model and the results encouraged Koç Holdings to develop and scale the model for use in all regions of Türkiye.



&#8220;We are willing to work with all interested stakeholders, international organizations and especially countries that are vulnerable to wildfires. In terms of scaling, we want to underline that this is a non-commercial product. We can share our algorithms and source codes for further improvements. We have already started to work on scaling the pilot to cover all regions in Turkey as the next step. In parallel, we are eager to work with data providers and piloting partners across the world. We must all unite in an effort to save our forests, our common future, our world, ”&nbsp;said&nbsp;Levent Çakıroğlu Chief Executive Officer of Koç Holding.



Deloitte, which joined the FireAId initiative in June 2022, is developing forecasting models and a scenario engine, together with an intuitive user interface (a dynamic map that users can pan and zoom, with key statistics and controls). It is looking to use its technology partnership with NVIDIA, developers of the Earth-2 digital model of the planet, to create a digital twin simulation for firefighters, allowing them to plot a fire’s likely progress and the effectiveness of proposed responses. Though much has been accomplished, these remain works in progress and are being rigorously tested. “Wildfires represent a growing environmental problem. Intervention measures are more effective the earlier they are taken – saving lives, livelihoods, habitats, as well as the cost of the measures themselves.&nbsp;While a significant modelling challenge, better prediction of fire outbreak and spread – using technologies such as AI, cloud and digital twins – has the potential to upgrade resource planning and save firefighters valuable time,”&nbsp;said&nbsp;David Thogmartin, Director of AI and Data Analytics at Deloitte Risk Advisory and AI and Machine Learning Fellow at the World Economic Forum In firefighting every second counts – it is critical to respond quickly and effectively. But many firefighters are hampered by ageing equipment and inadequate budgets. The report emphasizes that government ministries must respond to the need for funding to boost budgets, modernize departments and upgrade equipment. In project workshops, experts emphasized the need for international cooperation to develop this initiative. In particular, they stressed the need to:



<ul class="wp-block-list">
<li>Share compatible and relevant data, which is critical for the development of AI fire-prediction models</li>



<li>Supplement historical data with new sources that provide real-time information</li>



<li>Develop existing methods of using controlled burns to prevent, manage and limit wildfires – “fighting fire with fire”</li>
</ul>



The FireAId initiative provides inspiration for future development teams and a focus for global engagement among climate technology leaders in industry and government. Their cooperation should focus on developing the use of AI and ML in wildfire risk management and in mitigating other climate risks to protect natural environments, populations and economic prosperity. The success of the FireAId pilot provides hope. Progress is under way – existing data and past studies of wildfire dynamics lay a solid foundation for future development. “With the wildfire risk mapping and logistic planning project, in which Koç Holding’s advanced analytics and artificial intelligence capabilities and our know-how have combined, we have incorporated new technological advancements into our organization. Prior to this, only meteorological variables were used in risk mapping, but as of now static and meteorological datasets are combined. In addition, response time is one of the critical metrics in firefighting. The logistic planning part of the project enables us to reduce response time with less risk. “We have been working on extending our pilot [throughout] Türkiye. We believe that extending FireAId to other fire-prone countries with the support of the World Economic Forum will help the fight against wildfires,”&nbsp;saidBekir Karacabey, General Manager at the Turkish Ministry of Agriculture and Forestry.

Successful Pilot Shows How Artificial Intelligence Can Fight Wildfires

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246272359-820x547.jpg" alt="" class="wp-image-422421" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246272359-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246272359-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246272359-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246272359-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246272359-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246272359-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The logo the World Economic Forum (WEF) inside the Congress Centre in Davos, Switzerland, on Monday, Jan. 16, 2023. The annual Davos gathering of political leaders, top executives and celebrities runs from January 16 to 20. Photographer: Stefan Wermuth/Bloomberg via Getty Images</figcaption></figure>



Davos, Switzerland, 16 January 2023&nbsp;– A new report launched today at the World Economic Forum Annual Meeting 2023 shows how “early mover” countries can accelerate the food systems transformation. The report,&nbsp;<a href="https://www.weforum.org/reports/food-nature-and-health-transitions-repeatable-country-models">Food, Nature and Health Transitions – Repeatable Country Models</a>, offers insights into the actions and investments that can accelerate a country’s transition towards food systems that deliver a stronger economy, better livelihoods for a more inclusive set of people, greater nutritional security and improved health, while causing a lower impact on the climate and nature.



“Transforming food systems provide healthy and nutritious diets and dignified jobs for farmers and producers. This report shows how economic development with environment protection supports communities in climate adaption and mitigation efforts,” said Gim Huay Neo, Managing Director of the World Economic Forum’s Centre for Nature and Climate.



The report, written in collaboration with Bain &amp; Company, presents “repeatable models” from seven “early mover” countries in Africa, Asia, the Americas and Europe whose performance has been comparatively strong and whose examples and lessons are widely relevant. Their stories of transformation identify common, repeatable elements, including the most critical actions and investments for driving change and how they should be coordinated.



“Depending on the country context, different pathways could be adopted to transform our agrifood systems for improved food security and nutrition and assuring sustainability,” said Maximo Torero Cullen, Chief Economist at the UN Food and Agriculture Organization (FAO). “Scaling up climate resilience and strengthening our food environment to promote healthy diets&nbsp;are two key interventions with positive impacts on food security,&nbsp;nature and health.” “When food fails, everything fails,” added Geraldine Matchett, Co-Chief Executive Officer and Chief Financial Officer of Royal DSM, and Co-Chair of the CEO Alliance on Food, Nature and Health. “We must work to transform our food systems to be resilient, sustainable and healthy.” A number of countries, including Ghana, India and Viet Nam, have been able to evolve their food systems to improve a broader set of outcomes by unlocking the potential of small and medium-sized enterprises, particularly those that are farmer-allied and operating in local food chains. Countries can also use innovation to improve productivity, sustainability and nutritional outcomes, as demonstrated in Algeria, which has improved food security in the face of significant constraints on water availability, while Viet Nam has sustainably intensified its rice production. Farmers are more likely to adopt new practices if the economics work in their favour, according to the report, but making this happen requires action from many stakeholders. Examples in Canada and New Zealand illustrate how to scale adoption of nature-positive and climate-smart food production, particularly focusing on the case for an economic advantage for producers. Each of the “early mover” country profiles in the report show how multiple actors and concurrent levers, across sectors, interact and coordinate to enable large-scale transformation over time. Collectively, they demonstrate the potential for these levers – if applied in tandem and with greater urgency – to accelerate country-led food systems transformation. About the World Economic Forum Annual Meeting 2023 The World Economic Forum&nbsp;<a href="https://www.weforum.org/events/world-economic-forum-annual-meeting-2023">Annual Meeting 2023</a>&nbsp;convenes the world’s foremost leaders under the theme&nbsp;Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information, please click&nbsp;<a href="https://www.weforum.org/events/world-economic-forum-annual-meeting-2023">here</a>.



“Depending on the country context, different pathways could be adopted to transform our agrifood systems for improved food security and nutrition and assuring sustainability,” said Maximo Torero Cullen, Chief Economist at the UN Food and Agriculture Organization (FAO). “Scaling up climate resilience and strengthening our food environment to promote healthy diets&nbsp;are two key interventions with positive impacts on food security,&nbsp;nature and health.” “When food fails, everything fails,” added Geraldine Matchett, Co-Chief Executive Officer and Chief Financial Officer of Royal DSM, and Co-Chair of the CEO Alliance on Food, Nature and Health. “We must work to transform our food systems to be resilient, sustainable and healthy.” A number of countries, including Ghana, India and Viet Nam, have been able to evolve their food systems to improve a broader set of outcomes by unlocking the potential of small and medium-sized enterprises, particularly those that are farmer-allied and operating in local food chains. Countries can also use innovation to improve productivity, sustainability and nutritional outcomes, as demonstrated in Algeria, which has improved food security in the face of significant constraints on water availability, while Viet Nam has sustainably intensified its rice production. Farmers are more likely to adopt new practices if the economics work in their favour, according to the report, but making this happen requires action from many stakeholders. Examples in Canada and New Zealand illustrate how to scale adoption of nature-positive and climate-smart food production, particularly focusing on the case for an economic advantage for producers. Each of the “early mover” country profiles in the report show how multiple actors and concurrent levers, across sectors, interact and coordinate to enable large-scale transformation over time. Collectively, they demonstrate the potential for these levers – if applied in tandem and with greater urgency – to accelerate country-led food systems transformation. About the World Economic Forum Annual Meeting 2023 The World Economic Forum&nbsp;<a href="https://www.weforum.org/events/world-economic-forum-annual-meeting-2023">Annual Meeting 2023</a>&nbsp;convenes the world’s foremost leaders under the theme&nbsp;Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information, please click&nbsp;<a href="https://www.weforum.org/events/world-economic-forum-annual-meeting-2023">here</a>.

Countries That Tackle Food Crisis Can Boost ‘Jobs, Health and Nature’ and Meet Net-Zero Goals

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-820x547.jpg" alt="" class="wp-image-422404" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum</figcaption></figure>



By Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum, and Landry Signé, Executive Director and Professor, Thunderbird School of Global Management in Washington, DC; Senior Fellow, The Brookings Institution; Co-Chair, World Economic Forum Regional Action Group for Africa.



At a time of multiple, overlapping global challenges – from climate change to energy shocks to rising inflation and a cost-of-living crisis – the Africa Continental Free Trade Area (AfCFTA) offers promise not only for the region but for the world.



The AfCFTA, established in 2018, will create the world’s largest free trade area, bringing transformative change and tremendous opportunity to African economies and business environments. Its adoption and implementation will accelerate intra-African trade and develop regional and local value chains, creating new business dynamics that offer investors access to a population of 1.7 billion people with combined business and consumer spending reaching $6.7 billion by <a href="https://www.brookings.edu/book/unlocking-africas-business-potential/">2030</a>.



Global businesses have an important role to play in accelerating the implementation of the AfCFTA, according to a new report from the World Economic Forum, in collaboration with the AfCFTA Secretariat and Forum partners. The report outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in successfully entering and expanding in this area. &nbsp;



The AfCFTA Secretariat selected four key sectors that represent high-potential opportunities for companies looking to invest in Africa: the automotive industry, agriculture and agro-processing, pharmaceuticals, and transportation and logistics. These four sectors are expected to see rapid acceleration in production and trade volumes under the AfCFTA, given that they have a high potential to meet local demand with local production. Until now, local demand for these goods and services is currently being met through relatively high-cost imports, despite the region’s growing and lower cost production capabilities.



While the AfCFTA offers business opportunities in each of these four sectors, companies will also need to understand how the changing environments under the trade agreement will affect their strategies for success in the region. The World Economic Forum is actively working toward implementing trade and investment tools that are aligned with the negotiation process of the AfCFTA by identifying areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.



For example, public-private collaboration centered around implementing AfCFTA trade-facilitating provisions can <a href="https://www.tradefacilitation.org/">facilitate</a> trade in goods, on-the-ground initiatives can address fragmented investment regulatory frameworks, and bringing together groups committed to 4IR technology, digital payments, and information exchanges can support digital trade. To improve the societal outcomes of trade, the Forum’s Inclusive Trade Initiative is uncovering best practices that can be shared with AfCFTA negotiators and businesses. And an <a href="https://www.weforum.org/reports/accelerating-decarbonization-through-trade-in-climate-goods-and-services">inventory of 25 key climate technologies</a> and with country-specific studies helps identify opportunities for trade to align with circular economy goals. &nbsp;&nbsp;



Companies can also look to five new operational tools as they adjust to the changing dynamics under the trade agreement.



The AfCFTA Guided Trade Initiative has facilitated the start of trade in eight countries for 96 products, providing support and guidance on customs clearing and while gathering information on how to make the process more efficient for the private sector.



The Pan-African Payment and Settlement System enables users to make near-instant payments in their local currency without needing to convert to a foreign currency or use a third-party institution.



The AfCFTA Adjustment Facility Fund is a combination of a base fund, general fund, and credit fund, that assists governments and the private sector in addressing short-term disruptions through financing, technical assistance, and grants and compensation funding.



The AfCFTA Private Engagement Strategy helps companies to better understand the overall continental strategy as well as the specific initiatives and policy recommendations in emerging sectors that the AfCFTA is prioritizing.



And the Rules of Origin Manual &amp; E-Tariff Book sets the guidelines for the rules and procedures for determining the origin status of goods and makes information on duty rates easily searchable and comparable.



In addition, analysis of on-the-ground experience from companies including Agility, AFC, Coca-Cola, DP World, Menzies, Novartis, OCP, UBA, Volkswagen, and Yara, has revealed three main strategies that have led to success in Africa and can provide invaluable lessons to companies planning to seize the opportunities opened by the trade agreement.



The first strategy is to form local partnerships with governments, local institutions, universities and others to create regional hubs and host R&amp;D at local universities. The second strategy is to leverage key trade accelerators such as investing in local infrastructure and logistics, with opportunities ranging from food storage to partnering with local organizations to move various parts of the value chain onto the continent. The third strategy is to form integrated ecosystems by developing end-to-end value chains around local resources, which de-risks projects and creates an environment where shared infrastructure can support multiple projects in different sectors.



The global private sector must be prepared for the changes in trade dynamics ahead on the continent to seize the opportunities that the AfCFTA brings, achieving business success while helping to usher in a new era of economic development.



This article is part of the <a href="https://www.weforum.org/events/world-economic-forum-annual-meeting-2023">World Economic Forum’s Annual Meeting 2023</a>.

Centre for the Fourth Industrial Revolution, Rwanda Launch

A new era for global business and investment in Africa

Faced with rising demand for food by its growing population that is expected to cross the two-billion mark by 2050, amidst intensifying effects of climate change, Africa has no choice but to focus more on nature-friendly production.



This is the only sustainable way out for a continent that is already under intense pressure as it struggles to feed itself. According to the UN Food and Agriculture Organisation, Africa bears the heaviest malnutrition burden with an undernourishment prevalence rate of over 20%, compared to the global average of 9.9%.



With the food and nutrition insecurity projected to further worsen, production has to be significantly stepped up, urgently. Unfortunately, with the increasing frequency and intensity of extreme weather conditions due to biting effects of climate change, this boost in production can no longer be oblivious of its impact on the environment that also afflicts food systems. Food systems are estimated to contribute about a third of greenhouse gas emissions that cause climate change, with Africa particularly vulnerable. &nbsp;



Continuing with the traditional approaches, such as expanding cropland as a means of boosting production is no longer sustainable and risks serious consequences. Between 2003 and 2019, 75% of sub-Saharan Africa’s crop production growth came from the expansion of cropland, with only 25% coming from crop yield improvements. Such unsustainable patterns of production intensification have also compounded fragilities in Africa’s food systems.



On the other hand, the weighted average price of fertilizer has doubled between June 2021 and April 2022, putting a strain on farmers across the continent. The average application rate of mineral fertilizer in sub-Saharan Africa is 14 kilogrammes per hectare, which is at least 10 times lower than corresponding figures in South Asia, EU, South America, and East Asia. Limited availability and high prices of fertilizers has dampened prospects of the continent taking this route towards increasing productivity.



This leaves nature-positive production, and regenerative agriculture in particular, as a plausible option for the continent. It presents an opportunity to intensify production to address the current food crisis by sustainably boosting outputs to cater for growing consumption needs.



According to studies by the Africa Regenerative Agriculture Study Group, 2040 scenarios show that a 13% increase in yields from a regenerative agriculture scenario would translate into 62 million dry matter tonnes of additional crop production per year. This is in addition to potentially supporting 5 million full-time jobs by 2040, with over USD 70 billion of gross value being added per year.



Although many initiatives have been developed to promote nature-positive agriculture systems in Africa, smallholders have been slow to adopt the technological practices. Studies show that the certified land under organic agriculture in Africa is around 2.1 million hectares, which represents only 0.2% of the continent’s total agricultural area.



AGRA’s regenerative agriculture projects in Kakamega, Nandi and Vihiga counties of Kenya have seen about 4,451 hectares being put under sustainable land management practices, including conservation agriculture, agroforestry, soil and water conservation and integrated soil fertility management. However, despite the range of benefits from transitioning to regenerative and nature positive production bring clear, intrinsic barriers to the adoption of the practices by smallholder farmers still exist. This call for more efforts to bring more land under sustainable farming practices.



To effectively shift food systems to become more nature-positive, it depends largely on a conducive policy environment to deliver necessary incentives and de-risk the transition. This calls for a few key policy actions.



First, given that most regenerative practices involve permanent and long-term investments, it will be crucial to institute appropriate property rights and land tenure arrangements. This will not only provide the needed security to encourage investments, but also facilitate de-risking of the transition.



Secondly, we need to drive policy and regulatory reforms that level the playing field and incentivize regenerative agriculture. Current agricultural policies tend to disproportionately serve industrial agriculture over regenerative agriculture. Hence, we need to get the policy and institutional architecture right to support the needed transition.&nbsp;



The third imperative is focus on providing support for farmers during their beginning or transitioning years of regenerative farming. We need to invest more in decentralized and diverse food systems infrastructure, to create additional market and operational capacity for farmers pursuing regenerative farming. The technical resources offered through extension and public research institutions need to be improved to meet specific needs of farmers. National extension systems will also need to be appropriately resourced and equipped to provide tailored and specialist services to smallholder farmers to ease adoption hurdles.



Finally, we need to shape demand for food towards more sustainable diets. For instance, there should be mechanisms to support market development, raise consumer awareness and promote the consumption of products produced under regenerative farming systems.



This shift is necessary, since boosting productivity without a sustainability lens will continue to aggravate food systems challenges.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="661" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-820x661.jpg" alt="" class="wp-image-422387" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-820x661.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-300x242.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-112x90.jpg 112w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-768x619.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-1536x1239.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Dr Vine Mutyasira is Program Officer for Policy Quantitative Modelling and Data Analytics at AGRA.</figcaption></figure>

Vine-Mutyasira-1

Africa needs more nature-friendly food systems

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-820x547.webp" alt="" class="wp-image-418642" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-820x547.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-300x200.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-135x90.webp 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-768x512.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-1536x1024.webp 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE.webp 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Africa’s abundant renewable energy sources could make it a global hub for producing low-carbon hydrogen
Image: Unsplash/Anastasia Palagutina</figcaption></figure>



Geneva, Switzerland, 12 January 2023&nbsp;– The current energy crisis is driving inflation, slowing economic growth and creating social turmoil. We cannot afford to compound this crisis by allowing our responses to derail the energy transition. Yet short-term backward steps, such as increasing production of electricity from coal or broad-based consumption subsidies, risk doing just that. &nbsp; A comprehensive reappraisal of energy systems is urgently needed, to prioritize solutions that simultaneously enhance energy security while accelerating the transition towards a just, low-carbon future. A new report,&nbsp;<a href="https://www.weforum.org/whitepapers/securing-the-energy-transition">Securing the Energy Transition</a>,&nbsp;published today by the World Economic Forum, proposes a comprehensive framework that provides a strategic blueprint to make security and resilience the backbone of a transitioing energy system, and 10 actions to align current interventions to address the energy crisis with long term energy transition goals. &nbsp; “The energy crisis has brought energy security to the forefront of political and corporate agendas and prompted the need to develop responses that are adapted to how the energy system has evolved and to where it needs to transition,” said Roberto Bocca, Head of Shaping the Future of Energy, Materials and Infrastructure, World Economic Forum.&nbsp;“What is now a global crisis is a real opportunity to steer a more direct course towards a secure, sustainable and affordable energy future for everyone. This requires radical collaboration and a pragmatic approach to confront the complexities of the energy transition with immediate actions.” &nbsp; &nbsp; Energy systems in transition face opportunities and risks from changing energy markets as well as from increasingly decentralized, digitalized, decarbonized and distributed energy supplies – which necessitates a re-evaluation of energy security in the emerging context. The report proposes a comprehensive framework for a secure energy system to guide countries and policy-makers to plan strategic actions, policies and regulations.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="268" height="272" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/6722ec3b-6ec3-5f1e-f8fc-ea1a4740cfe4.png" alt="" class="wp-image-422334" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/6722ec3b-6ec3-5f1e-f8fc-ea1a4740cfe4.png 268w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/6722ec3b-6ec3-5f1e-f8fc-ea1a4740cfe4-89x90.png 89w" sizes="auto, (max-width: 268px) 100vw, 268px" /></figure>



The near-term consequences of the energy crisis require immediate interventions – but these responses offer a valuable opportunity to accelerate progress towards a future for energy that is both secure and sustainable. “The energy crisis impacts us all and the world cannot afford short-term fixes to the energy crisis which could increase future risks to both the climate and energy equity. The good news is that the crisis offers an opportunity for interventions that balance energy security with an effective low-carbon transition,” said Espen Mehlum, Head of Energy, Material and Infrastructure Program, World Economic Forum The report proposes 10 immediate actions organized under four key themes: Supply reinforcements



<ol class="wp-block-list">
<li>Prioritize supply from renewable energy and constrain fossil fuel reinforcements to committed emission reduction targets&nbsp;– the IEA recommends $5 of investment in renewables for every $1 spent on new fossil fuel production.</li>



<li>Advocate for a diversified energy and trade matrix&nbsp;– an over-concentration on a few energy suppliers was a key contributor to the current energy crisis.</li>



<li>Address methane leakage from hydrocarbon supply chains&nbsp;– the climate benefits of natural gas are no better than coal if more than 3.4% of it escapes before combustion, but some fields have fugitive emission rates of 6% or more.</li>
</ol>



Demand management



<ol class="wp-block-list">
<li>Maximize electrification and energy efficiency to alleviate and decarbonize demand&nbsp;– high gas prices in the near term will enhance the economics of investing in efficiencies and electrifying industries and home heating.</li>



<li>Nudge social behaviour towards responsible energy consumption&nbsp;– globally the top 10% of households consume roughly 20 times more energy than the bottom 10%, but targeted public information and incentives could encourage top-end consumers to become more efficient.</li>
</ol>



Fiscal measures and investments



<ol class="wp-block-list">
<li>Leverage excess profits from energy market to bridge clean energy investment gap&nbsp;– to reach net zero, investments in clean energy needs significant increase. Immediate deployment that can be achieved also through leveraging the extra profits – estimated in 4 trillions- that have been realised in some parts of the energy markets.</li>



<li>Target vulnerable consumers with fiscal measures, without interfering in market signals&nbsp;– government incentives and subsidies to improve energy affordability should avoid distorting market signals, be more targeted, and incentivise continued investment by private sector and efficient consumption.</li>



<li>Provide reliable signals to investors in energy supply and infrastructure&nbsp;– clear guidance is needed from policy-makers on the outlook for gas demand alongside acceleration of low-carbon sources.</li>
</ol>



Co-ordination and long-term strategy



<ol class="wp-block-list">
<li>Co-ordinate with regional peers to maximize efficiency and minimize costs –&nbsp;for example, joint procurement and co-ordinateed new LNG import facility installation &nbsp;to prevent overcapacity and stranded assets.</li>



<li>Revisit energy security strategies considering shifting technology and fuel landscape –&nbsp;this crisis provides an opportunity for countries to comprehensively redesign their approaches to energy security.</li>
</ol>



While governments are primarily responsible for ensuring their countries’ energy security, addressing this crisis in a sustainable manner will require exceptional levels of engagement from and collaboration between governments, companies, international organizations and individual consumers.

responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE

Energy Crisis Offers Opportunity to Embrace New Solutions that Advance a Secure, Sustainable, and Inclusive Energy Transition

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="616" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-820x616.jpg" alt="" class="wp-image-422289" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-820x616.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-768x577.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-1536x1153.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A plant sprouting from a handful of coins. Investment, finance, and accounting concept</figcaption></figure>



As the provider of food, nutrition, and jobs for millions, Africa’s food systems are a central pillar of livelihoods and GDPs across the continent. Yet, they are at the forefront of the global climate crisis.



Climate change has reduced productivity growth of African food systems by 34 per cent since 1961. Still, continued warming to 2C this century could cause crop yields to fall by up to&nbsp;<a href="https://www.un.org/africarenewal/magazine/special-edition-agriculture-2014/despite-climate-change-africa-can-feed-africa" target="_blank" rel="noreferrer noopener">20 per cent</a>&nbsp;by 2030, endangering countless lives and livelihoods alike.



In the face of this urgent challenge, there remains a huge gap in Africa’s current climate adaptation funding, estimated to be within the region of&nbsp;<a href="https://gca.org/wp-content/uploads/2022/11/GCA_State-and-Trends-in-Adaptation-2022_Adaptation-Finance-Flows-in-Africa.pdf" target="_blank" rel="noreferrer noopener">US$41.3 billion</a>&nbsp;– annually – for the entire continent.



To bridge this climate finance gap, African countries must urgently adopt a range of innovative policy, financial, and institutional solutions to encourage more investment in adaptation. The recently released Malabo Montpellier Panel&nbsp;<a href="https://www.mamopanel.org/resources/climate-finance/" target="_blank" rel="noreferrer noopener">climate finance report</a>&nbsp;analyzes policy and institutional innovations and programmatic interventions across four African countries to explore government actions toward leveraging international climate finance for food systems transformation.



Key recommendations from the report underscore the importance of securing timely, predictable, and sustainable access to finance to support adaptation across Africa’s food systems – buffering the main source of nutrition and livelihoods for many. Similarly, access to finance must go hand-in-hand with capacity building in national institutions across the region, in the public and private sectors, for sustainable outcomes.



To begin with, mobilizing greater private sector finance will prove essential in bridging the existing gap in adaptation finance. Private finance is an underutilized resource in African climate finance, yet the goal of greater adaptation for food systems cannot be achieved without it.



Currently, the African Development Bank estimates that about 75 per cent of the financing required for the successful implementation of Africa’s Nationally Determined Contributions (NDCs) – the climate commitments and goals of each individual country – needs to be provided through private investments. Despite this, there is also a lack of data to accurately capture the amount of private climate finance that is currently allocated to food systems, a fundamental drawback that must be resolved in bridging this financing gap.



Recent developments in private finance offer a path forward for unlocking future adaptation funding for African countries. For instance, the&nbsp;<a href="https://www.clarmondial.com/fsf_launch_first_investment/" target="_blank" rel="noreferrer noopener">Food Securities Fund</a>, developed by Clarmondial, provides working capital loans to agricultural aggregators such as cooperatives, processors, and traders in developing and emerging markets.



Secondly, African countries should prioritize blended finance models in raising more and better adaptation funding.



Blended finance models combine concessional capital from private or public resources to de-risk and “leverage” additional capital from other actors. Furthermore, blended finance instruments allow each party to accomplish their own objectives while at the same time contributing to common goals – in this case – climate adaptation.



According to the National Climate Funds Tracker, there are 12 national climate funds in Africa. National climate funds offer an important means to mobilize funds for adaptation by raising and blending capital from public and private sources.



Moving forward, African governments and financial decisionmakers should seek to prioritize blended finance models to boost adaptation funding. Ethiopia’s Climate Resilient Green Economy (<a href="https://www.mofed.gov.et/programmes-projects/crge-facility/" target="_blank" rel="noreferrer noopener">CRGE</a>) Facility, for example, offers a dedicated financing arm to coordinate the receipts and disbursements of finance from international sources to sectoral ministries for implementation.



Finally, African countries should adopt local climate finance models, to boost the climate adaptation of local communities who are ultimately on the frontlines of climate change.



At present, estimates suggest that only five per cent of all funding flows from international climate funds have been disbursed for locally based climate adaptation interventions on the continent. Essentially, the communities that most need this finance are not receiving it.



In 2017/18, climate finance globally reached only&nbsp;<a href="https://www.climatepolicyinitiative.org/publication/climate-finance-small-scale-agriculture/" target="_blank" rel="noreferrer noopener">US$8.1 billion</a>&nbsp;for small-scale farmers, agri-entrepreneurs, and other value chain actors serving them – despite their importance in adapting our food systems as a whole to the impacts of climate change. These figures were equivalent to only&nbsp;<a href="https://www.climatepolicyinitiative.org/publication/climate-finance-small-scale-agriculture/" target="_blank" rel="noreferrer noopener">40 per cent</a>&nbsp;of the total climate funds committed to the agriculture, forestry, and land use sectors in those years.



Governments and financial sectors across Africa must take note of recent developments to grow the amount of climate finance reaching local communities. The development of the National Fund for Environment and Climate Change (FNEC) and Community Development Support Fund (FaDEC) in Benin, offer examples for how climate finance can help support the most vulnerable local communities more effectively.



To meet the adaptation needs of Africa’s food systems, an important paradigm shift amongst the finance community, and African governments, is needed; both groups are critical and need to complement each other to achieve collective aims.



Climate adaptation is not only an opportunity to address the impacts of climate change, but also serves as a springboard to unlock the potential of food systems to deliver for lives and livelihoods across Africa.



Dr. Debisi Araba, Visiting Researcher, Imperial College London; Member, Malabo Montpellier Panel

A plant sprouting from a handful of coins. Investment, finance, and accounting concept

The African innovations unlocking new pathways to scale access to climate finance

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1365582823-1-820x547.jpg" alt="" class="wp-image-422254" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1365582823-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1365582823-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1365582823-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1365582823-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1365582823-1-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1365582823-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Two doctors in hospital hallway discussing electronic patient record &#8211; stock photo</figcaption></figure>



Geneva, Switzerland, 9 January 2023 – The shortage of healthcare workers could rise to 10 million by the end of the decade, affecting access to care, inequities and treatment of mental health. A new report published by the World Economic Forum, <a href="https://www.weforum.org/reports/global-health-and-healthcare-strategic-outlook-shaping-the-future-of-health-and-healthcare">Global Health and Healthcare Strategic Outlook</a>, offers business and policy-makers a blueprint for more sustainable, resilient healthcare systems rather than accepting trade-offs of efficiency over social fairness.



Launched in the run-up to the World Economic Forum Annual Meeting 2023 in Davos-Klosters, the report presents case studies in four areas that can drive change: equitable access and outcomes; healthcare systems transformation; technology and innovation; and environmental&nbsp;sustainability.



“The pandemic brought remarkable progress for development and delivery of medicines. We now need to focus on long-term system change to stop health services deteriorating in the face of economic crises. Businesses and policy-makers must think beyond false trade-offs of efficiency over social fairness and harness the power of public-private partnerships and outcomes-based regulation to drive healthy equity by the end of the decade,” said Shyam Bishen, Head of Health &amp; Healthcare, World Economic Forum.



The Annual Meeting will convene more than 2,700 leaders from business, government and civil society. Leaders from healthcare organizations will focus on driving public-private partnerships for better health outcomes.



The report, prepared with L.E.K. Consulting, highlights the pandemic’s disruptions such as a 25% drop in coverage of essential health services. This resulted in compound impacts on vulnerable populations and minority communities, especially in low- and middle-income countries. More specifically, COVID-19 put extra strain on healthcare systems, disrupted global supply chains of essential products and pushed overburdened care providers to breaking point.



“The threat of violence and burnout are real and is one of the contributors as to why doctors are considering other professions,” said Kashish Malhotra, Physician, Department of Internal Medicine, Dayanand Medical College and Hospital, North India



To improve access and narrow the global health disparity gap, the report urged healthcare leaders to allocate funds disproportionately towards alternative care models and to include more representative clinical trials across low- to middle-income countries.



As healthcare systems seek to adapt and evolve, innovations frequently outpace regulatory change. On top of this, public regulations vary by jurisdiction and the lack of common standards across the global industry erodes trust, inhibits reimbursements and slows the sector’s return to pre-pandemic stability. Meanwhile, the private sector is stymied by fragile and disrupted supply chains, while a go-it-alone business mindset further slows healthcare’s systemic transformation.



“Too often we see many companies trying to find the path through the forest themselves and each of them getting lost and not learning from one another,” saidJeff Allen, Chief Executive Officer, Friends of Cancer Research. “Public-private partnerships help bridge this divide to find solutions to common problems in a shorter time.” Service delivery value is worth more than volume, the report argues. To incorporate prevention, healthcare policy should be linked to consistent and measurable outcomes since what is efficient is not always what is most effective.



On partnerships for innovation, the pandemic accelerated a technological tipping point in digital health and telemedicine. This can be expanded to other areas of healthcare. With a Wi-Fi signal and better digital access, a rural patient can consult with a health worker from a nearby city or halfway around the world. “People want on-demand healthcare,” said Jisella Veath Dolan, Chief Global Advocacy Officer, Honor + Home Instead. “We want greater accessibility to real-time answers.”



Remote care empowers both patient and worker. It improves convenience, adherence and access to information across geographies. By reducing the need for traditional infrastructure, costs per patient fall. And telehealth goes beyond online consultation. Artificial intelligence (AI) and robotics further support clinical decisions, home diagnostics, home-administered drug delivery systems and patient monitoring devices. By harmonizing data use, Dolan said, “physicians are building better relationships with patients through telehealth and we are seeing greater uptick in usage by older adults.” The pandemic demanded emergency responses. However, according to the new report, medical triumphs are too often reactive “cures” to the communicative zoonotic diseases that could have been prevented at far lower costs. To preserve health and save lives, a higher return on investment comes from clean air, safe water and healthy biodiversity. &nbsp;

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‘Patient-First’ Tech Innovations Can Boost Healthcare Access, Tackle Workforce Shortages and Burnout 

Cabinet has approved the publication of the Green Hydrogen Commercialisation Strategy (GHCS) for public comment.



The strategy is aimed at ensuring that the country takes full advantage of the opportunities provided by green industrialisation.



Minister in the Presidency, Mondli Gungubele, said that the Green Hydrogen Commercialisation Strategy will ensure that South Africa becomes a major producer and exporter of green hydrogen.



“It contributes towards economic growth and supports the country’s just transition interventions towards the reduction of carbon emissions,” Gungubele said at a post-Cabinet media briefing on Thursday.



South Africa already has the Hydrogen Strategy and the Hydrogen Society Roadmap adopted by Cabinet in 2021.



Cabinet said that the rapidly growing green hydrogen market presents huge opportunities for the country.



The release of the GHCS for public comment follows the recent South Africa Green Hydrogen Summit which outlined some of the country’s future plans.



South Africa is one of the founding members of the Africa Green Hydrogen Alliance (AGHA) which seeks to promote continental green hydrogen cooperation. –SAnews.gov.za

hydrogen

Cabinet approves publication of Green Hydrogen Commercialisation Strategy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="499" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2-820x499.jpg" alt="" class="wp-image-421744" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2-820x499.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2-300x182.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2-768x467.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2-1536x934.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2.jpg 1638w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Professor Quarraisha Abdool Karim (L) and Prof Salim Abdool Karim (R) at the CAPRISA main laboratory in Durban, South Africa. They are two of the world’s leading AIDS researchers, with pioneering contributions in understanding the evolving HIV epidemic among young people, especially among young women while also advocating for the rights of people living with and affected by HIV.</figcaption></figure>



We can no longer ignore the connection between inequality and new HIV infections &#8211; Prof. Salim Abdool Karim, Director of the Center for the AIDS Program of Research in South Africa (CAPRISA)



In sub-Saharan Africa, every two minutes an adolescent girl or young woman was newly infected with HIV in 2021 alone. One young woman. Every two minutes. Think about that for a moment. The <a href="https://indanger.unaids.org/">In Danger</a>report should raise alarm bells for all of us.



The COVID-19 pandemic has slowed down HIV prevention and treatment in the past two-and-a-half years leading to significant impact on the control of the disease and the achievement of the <a href="https://www.unaids.org/en/resources/documents/2020/global-aids-report">95-95-9</a>5 strategy which calls for 95% of people living with HIV to know their HIV status, 95% of people who know their status to be on antiretroviral, and 95% of all patients receiving antiretroviral therapy to be virally suppressed.



While much progress has been made over the past four decades since the first HIV cases were reported, not everyone is benefitting equally from the scientific advancements that have taken place in HIV research in recent years. Notably, this progress should not be used to justify inequalities that still persist in HIV testing and treatment, even more so for the introduction of new technologies. The upcoming 2nd <a href="https://cphia2022.com/">International Conference on Public Health in Africa</a> (CPHIA 2022) December 13-15 in Kigali, Rwanda will shine the spotlight on this connection and the urgent need to focus on HIV response alongside Tuberculosis (TB), malaria and other neglected tropical diseases (NTDs).



Reducing stigma and discrimination, and increasing access to justice are critical in the global response to HIV. By combining resources and strengths to support vulnerable communities at a higher risk of exposure to HIV – such as migrants and prisoners, people who use drugs, LGBTI people, sex workers, teenagers, young people, women and children, we can work together to address the range of challenges they face and in so doing, ensure they have timely access to essential HIV care and support.



Identifying and involving these vulnerable communities lie at the heart of an effective action plan. These groups bring invaluable knowledge of the specific obstacles they face, and the potential – and sustainable – solutions to affect real long-term change. Partnerships between community-based organisations and academic institutions can provide the evidence to inform policy, programs and services to better respond to the unique realities and needs of communities, particularly the most marginalised. Such partnerships are fundamental to creating lasting health change in Africa.



From the COVID-19 response, we have learned the importance of supporting scientific innovation and promoting cutting-edge medical technologies, and making them available to people in all countries throughout the world in an affordable and timely manner. Similarly, African-led convenings, such as CPHIA 2022, will offer opportunities for researchers and public health leaders share knowledge, and strengthen scientific collaboration and innovation to reinforce stronger primary health care systems and create a conducive environment capable of responding to diseases—such as HIV —that continue to disproportionately affect vulnerable communities.



The <a href="https://www.unaids.org/en/resources/documents/2021/2021_political-declaration-on-hiv-and-aids">political declaration</a> adopted by United Nations Member States in 2021 to end inequality and get on track to end AIDS by 2030 is a clear indication that there is genuine eagerness – and action – toward reducing new HIV infection. Reaching this goal will require an integrated and holistic approach by all players to create mutually beneficial partnerships; those that seek to combine the different strengths of diverse partners to convert big ideas into bigger, impactful outcomes.



Therefore, it is important to learn from the pandemic and leverage cross-border and cross-sectoral collaborations with speed and accuracy when these challenges threaten our lives and economic well-being. &nbsp;



We owe it to the next generation to do better. We owe it to them to break the cycle of economic, social, cultural and legal inequalities and ensure an <a href="https://2009-2017.state.gov/secretary/20092013clinton/rm/2011/11/176810.htm">AIDS-free generation</a> with zero new HIV infections, zero discrimination and zero AIDS-related deaths. The goal is ambitious but achievable and vital in ending AIDS as a global health threat.



As we commemorate the 34th anniversary of World AIDS Day today (1 December) under the theme “Equalize”, I join hands with other public health leaders in every sphere and at every level in committing providing actionable solutions to the barriers that keep us from making progress and helping to end AIDS.

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Ending AIDS for the Next Generation

Africa is in a race against time on food security and the stakes could not be higher. The situation is unprecedented in my four decades of experience working in agricultural research and development.



We are faced with the longest drought in over 40 years, leaving <a href="https://www.who.int/news/item/02-08-2022-who-launches-appeal-to-respond-to-urgent-health-needs-in-the-greater-horn-of-africa">80 million people in the Horn of Africa with uncertain access to adequate nourishment</a>. In my home country of Nigeria, <a href="https://nema.gov.ng/">recent flooding</a> – the worst in a decade – has destroyed vital food supplies in Africa’s most populous nation. Hunger is again stalking the continent.



Africa’s food security is squeezed from two sides since the continent has both the lowest agricultural productivity of any region and the fastest population growth. Yields of everything from wheat to rice to cassava are well below the global average, reflecting the fact that millions of smallholder farmers lack access to the basic tools and skills that could lift them beyond subsistence.



The short-term outlook is bleak. Regional conflicts, extreme weather events and economic instability are all exacerbating the food crisis. And Russia’s invasion of Ukraine has driven up global prices for food, fuel and fertilizer, limiting the ability of African countries to finance vital imports.



Despite this, there remains an enormous untapped opportunity to put Africa’s food security on a sounder footing. The economic case for action is compelling. Investments in agricultural innovations have been shown to generate <a href="https://www.cgiar.org/news-events/news/cgiar-research-pays-off-new-report-finds-10-times-return-on-investment/">returns 10 times the amount initially invested</a>.



By rolling out agricultural solutions that are known to improve productivity – from better seeds and fertilizers to early warning systems and training for growers – farms across Africa can increase output and build long-term resilience.



According to one analysis, <a href="https://www.mckinsey.com/industries/agriculture/our-insights/winning-in-africas-agricultural-market">Africa could produce two to three times more cereals and coarse grains</a>, primarily by improving crop yields and reducing post-harvest losses. Even a fraction of that improvement would transform the continent’s food security situation and slash its current alarming dependence on imports.



The window for action, however, is limited and the need to implement change is urgent. African nations need to move away from dependency on development assistance, they need to significantly invest in agricultural research and development and for the near term, they need to select and fast-track interventions with the greatest potential to deliver both immediate gains and sustainable improvements in agriculture. This is essential to meet the demographic challenges of the years ahead.



Encouragingly, leading African institutions are now coming together to help make these productivity gains a reality. &nbsp;



The African Development Bank (AfDB), the African Union, the Forum for Agricultural Research in Africa and CGIAR – the world’s largest agricultural research and innovation network, have recently <a href="https://www.cgiar.org/news-events/news/abidjan-ii-african-development-bank-african-union-commission-cgiar-forum-for-agricultural-research-in-africa-join-forces-to-strengthen-africas-food-systems/">committed to close cooperation</a> to take African agriculture to the next level. This is welcome news.



The aim – to empower African farmers to better feed their communities – is simple, yet the prize is great. The immediate priority is to deploy proven tools at the scale of tens of millions of farmers. It is a goal that is eminently achievable. In the last three years, for example, the Technologies for African Agricultural Transformation (TAAT) scheme, which is supported by the African Development Bank and implemented by CGIAR, has delivered climate-smart seeds to 12 million farmers in 27 countries. Breeding better crop varieties is just one of a range of transformational innovations that are needed to ensure Africa’s future food security, ranging from improvements in soil fertility to better livestock management. It does not stop there, for any holistic solution it will be critical to maintain investment in research, to improve resilience to future shocks.



Leveraging the capabilities of CGIAR’s network of research centers, which benefit from the support and partnership of their host countries in Africa and beyond, Africa can achieve similar agricultural growth and food security gains seen in Asia and Latin America.



The transition to a more unified and integrated “One CGIAR” is positioning the organization to tackle increasingly complex and interconnected challenges to food security and deliver holistic solutions to smallholder farmers everywhere. I believe that smallholder farmers in Africa will benefit most from an integrated CGIAR working in partnership with African research and innovation institutions. That is why I, along with other African stakeholders and partners of CGIAR, support the call from its <a href="https://www.cgiar.org/news-events/news/cgiar-country-region-and-funding-partners-signal-strong-support-for-integration/">country, regional and funding constituents</a>, for CGIAR Centers and other parties to endorse in December an agreement that puts the integration on a clear path forward.  



Sadly, the world is not on track to meet the <a href="https://www.un.org/sustainabledevelopment/hunger/">UN Sustainable Development Goal of zero hunger by 2030</a> – and it is people in Africa who will bear the brunt of this policy failure. That is all the more reason to deploy proven technologies that can transform the fortunes of Africa’s farmers today, while maintaining critical investment in research that will provide resilience to future shocks. &nbsp;&nbsp;



Now is the right time for African decision-makers to make the smart investment decisions needed to get appropriate technologies to their farmers at scale.



Dr Nwanze has worked for more than 40 years for CGIAR and Rome-based agencies, most recently serving as President of the International Fund for Agricultural Development (IFAD), and is a former member of the CGIAR System Management Board.

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Unleashing Africa’s agricultural potential is key to food security

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA-820x547.webp" alt="" class="wp-image-421605" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA-820x547.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA-300x200.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA-135x90.webp 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA-768x512.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA-1536x1024.webp 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/responsive_big_webp_-T-8c6OQK1-KTppFdqwFVMOi_mvKHnJgNOWMtDDuCRA.webp 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Jute farmers work in a flooded area of rural West Bengal which has been badly hit by climate change. Image: DIPAYAN BOSE / Climate Visuals Countdown.</figcaption></figure>



As the impacts of climate change hit harder, a new realism is dawning about our changed circumstances. Increasingly, we are recognising that climate change isn’t just a future problem from which we must protect our children. It is a problem from which we must protect ourselves today.



We need to fight climate change with both sword (cutting our emissions to fight further increases in warming) and shield (protecting ourselves from climate change’s increasing effects). Adaptation and mitigation should be pursued, as UN Secretary General António Guterres said, &#8220;with equal force and urgency.&#8221; Over 1C of warming has already happened, and <a href="https://www.unep.org/resources/emissions-gap-report-2022">warming over 1.5C is very likely</a>. We are <a href="https://www.unep.org/resources/adaptation-gap-report-2021">nowhere near ready</a> for the impacts this will bring.



<h2 class="wp-block-heading">Climate adaptation action plan</h2>



On 8 November 2022, the COP27 Presidency launched the&nbsp;<a href="https://climatechampions.unfccc.int/wp-content/uploads/2022/11/SeS-Adaptation-Agenda_Complete-Report-COP27_FINAL-1.pdf">Sharm-El-Sheikh Adaptation Agenda</a>&nbsp;– the first ever comprehensive global action plan rallying governments and non-state actors behind 30 adaptation goals for a resilient world by 2030. This framework signals a growing expectation that business, alongside other actors (countries, cities, investors, civil society), take action to adapt to the acute hazards now facing us.



Adaptation is a crucial part of the fight against climate change. It is necessary to protect people around the world from the climate change that’s already in process, and it also brings huge opportunities to help 7.8 billion people transition to a more sustainable and secure way of life.



For example, transitioning to&nbsp;<a href="https://www.ipcc.ch/report/ar6/wg2/">climate-resilient farming practices</a>&nbsp;could increase yields by 17% without increasing land use. Adaptation will spur the expansion of industries, such as water conservation, heat-resistant infrastructure, and drought-resistant agricultures, supporting prosperity and security for billions of people as we build a climate-resilient world.



Adaptation is good for business. It can help companies expand their business footprint, achieve efficiency gains, innovate for the future, and enhance long-term sustainability. In addition, business adaptation is good for the society of which business is an inseparable part. Business thrives when society thrives.



Retooling society to cope with a warming climate is a huge task. Business, with its dynamic capacity to power innovation and change, has a critical role to play. That’s why PwC and the World Economic Forum are collaborating to help drive adaptation to climate change. We’ve united a global community from the private and public sectors to&nbsp;<a href="https://www.pwc.com/gx/en/services/sustainability/publications/critical-business-actions-for-climate-change-adaptation.html">define three areas</a>&nbsp;in which business can take action:



<h2 class="wp-block-heading">1. Enhance resilience</h2>



Companies should assess their climate risks and build sufficient resilience. Companies should study the risks in their supply chains, identifying risk hotspots, prioritising areas for adaptation, and supporting stakeholders in their supply chains with the technical skills and financial support they need to adapt. For example, a large retailer identified dozens of its facilities at risk of extreme weather, while a major conglomerate identified hundreds of millions of dollars of potential climate-related risks in its supply chain – enabling both companies to <a href="https://www.pwc.com/gx/en/services/sustainability/publications/risks-and-opportunities-of-climate-change-on-business.html">take action to build resilience</a>. Other firms are striving to build resilience through developing or using, for example, weather data and early warning systems, drought resistant crops, flood defences, waste water collection and re-use, cooling systems, heat resistant infrastructure, and more.



<h2 class="wp-block-heading">2. Capitalise on opportunities</h2>



Businesses can flex their skills in investment and innovation to develop and scale products and services that enable society to live sustainably in the new climate reality. This includes, for example, investing in R&amp;D and building ecosystems to foster innovation and scale new adaptation solutions.



<h2 class="wp-block-heading">3. Shape collaborative outcomes</h2>



Successful adaptation requires cross-society collaboration. Managing climate change requires&nbsp;<a href="https://www.pwc.com/gx/en/services/sustainability/publications/net-zero-progress-and-perils.html">partnership between all parts of society</a>. Businesses can participate in multi-stakeholder efforts that promote action on climate change adaptation, from engaging with governments on policy-making to collaborating with industry players, community leaders, academia, development agencies and others to promote action. Partnering with local communities is particularly valuable because climate change has different impacts in different locales, meaning adaptation solutions need to be hyper-local. In addition, companies can join adaptation initiatives like&nbsp;<a href="https://racetozero.unfccc.int/join-the-race-to-resilience/">Race to Resilience</a>, co-invest in adaptation projects, and provide technical support to adaptation efforts.



<h2 class="wp-block-heading">Investing in climate adaptation</h2>



In short, smart companies are acting now to adapt to a climate that is changing before our eyes. The more energetically business dedicates itself to adaptation, the more society as a whole is helped to adapt and benefit.



Some business leaders view adaptation as a corporate social responsibility initiative rather than a business imperative as part of the overall execution strategy and risk management. We encourage these executives to recognise that&nbsp;<a href="https://www.pwc.com/gx/en/services/sustainability/publications/risks-and-opportunities-of-climate-change-on-business.html">all companies</a>&nbsp;can be affected by climate change. Even business leaders who may believe their companies have little exposure to climate change have&nbsp;<a href="https://www.pwc.com/gx/en/services/sustainability/climate/the-true-test-of-climate-resilience.html">no reason for complacency</a>.



The effort of adaptation is worth it. Globally, $1.8 trillion of investment into adaptation efforts could generate&nbsp;<a href="https://gca.org/reports/adapt-now-a-global-call-for-leadership-on-climate-resilience/">$7.1 trillion in total net benefits by 2030</a>. Insurers reckon that a dollar spent on adaptation – strengthening flood and wind defences, for example –&nbsp;<a href="https://www.economist.com/special-report/2015/11/26/hot-and-bothered">saves five in reconstruction</a>. Best of all, of course, proactive adaptation opens up opportunities to build a more sustainable world.



We encourage all companies to&nbsp;<a href="https://www.pwc.com/gx/en/services/sustainability/publications/critical-business-actions-for-climate-change-adaptation.html">take action in these three areas</a>&nbsp;to help fight climate change with both sword and shield.

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3 ways business can take action in the fight against climate change

Although African delegates had marginal success in placing the continent’s unique needs and circumstances on the agenda of COP27, the ultimate deal to create a ‘loss and damage’ fund is a huge boost to tackle climate change.



The proposed dedicated fund will provide a framework for developed countries to compensate developing countries that have suffered the impact of climate-related damage to infrastructure. It promises to benefit Africa, a continent, disproportionately afflicted by the effects of climate change. Even as delegates from across the world, drawn from government, private sector, not-for-profits, young people, civil society, indigenous peoples, and local communities congregated to discuss the solutions, there was the backdrop of severe droughts and floods in different parts of the continent, defining the urgency.



The challenge for Africa now lies in sustaining the momentum to address ‘loss and damage’ by setting in motion the proposed fund. We need to lock in the details that will operationalise the fund, for it to begin paying out compensation to unlock its benefits, for inclusive and sustainable development that leaves no one behind. There is a great onus on the international community to turn the agreement into action in the spirit of ‘follow through’ that COP27 was about. Additionally, consideration needs to be given to widening the net of contributors to the fund beyond the developed countries to draw in the private sector, including through innovative mechanisms, such as sustainable smart finance.



Besides the opportunity presented by the ‘loss and damage’ fund, there were other glimmers of hope in advancing climate change action at COP27. These too need to be consolidated and pursued.



One such opportunity is food systems, featuring prominently in COP27 for the first time in such gatherings. We cannot win the fight against climate change unless attention is paid to holistically transforming food systems. Having it on the negotiation floor is a crucial first step in this direction. This focus needs to be sustained and explore scaling resilient systems while tackling emissions across the value chains.



In addition to this, indigenous voices were significantly represented at COP27. This needs to be built on and strengthened, knowing communities are good custodians of nature. Nature is our climate defender and we need communities to unleash this potential if we are to effectively tackle the climate crisis. We have to link the mega commitments to action at the grassroots by investing in nature-based solutions.



All these are opportunities to re-energize the fight against climate change. Africa cannot afford to relent and take its foot off the pedal. Efforts need to be sustained to scale up urgent climate action. More importantly, the continent has to continue working together to fight climate change and biodiversity loss. Now more than ever before, collective response to the climate crisis is key, to unlock investments in technology transfer, capacity building, and financial resources. We all have to work together for a better future by pursuing the opportunities unlocked by COP27.



As we tackle the climate change crisis, nature-based solutions must remain a core part of our ammunition. Natural habitats have the ability to absorb and store vast amounts of carbon. It is projected that protection, restoration, and better management of our lands and wetlands reduce up to a third of the emissions needed to limit global warming and keep the climate within safe boundaries. Natural solutions not only restore and protect vulnerable ecosystems but also positively impact the livelihoods of communities. Nature-based solutions require more climate funding, beyond the current less than 10% percent globally. In this regard, The Nature Conservancy will continue providing the expertise and the science for governments and other actors.



As Africa looks ahead to COP28 next year, delegates must prepare well to secure a more ambitious mitigation outcome. The continent needs to secure a robust global goal on adaptation and the scaling of funding to move faster and further, beyond pledges and commitments towards effective climate action.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="697" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-820x697.jpg" alt="" class="wp-image-421601" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-820x697.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-300x255.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-106x90.jpg 106w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-768x653.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-1536x1305.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Ademola Ajagbe is the Regional Managing Director, Africa at The Nature Conservancy</figcaption></figure>



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Ademola-Ajagbe-2

How Africa can build on COP27’s small wins

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-820x547.jpg" alt="" class="wp-image-421577" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FoodBanking Kenya volunteers distribute food items such as flour, potatoes, kales and french beans to the residents of Ilbisi located in Kajiado County, Kenya, on September 20, 2021. PHOTO © THE GLOBAL FOODBANKING NETWORK/BRIAN OTIENO</figcaption></figure>



The&nbsp;Maasai&nbsp;people of Kenya’s Great Rift Valley are some of Africa’s most well-known and culturally distinctive tribal peoples. Traditionally nomadic and pastoralist, the&nbsp;Maasai&nbsp;are self-sufficient, thriving from the production of their livestock and living off the lands they call home.



Yet, when this land fails, due to climate stress and&nbsp;<a href="https://www.reuters.com/world/africa/drought-forces-kenyas-maasai-sell-starving-cattle-pittance-2022-10-19/" target="_blank" rel="noreferrer noopener">persistent drought</a>&nbsp;rendering swathes of pastureland unviable for the grazing of livestock, the specter of hunger and deprivation follows close behind. However, for many of the&nbsp;Maasai, relief has come from what some might consider an unexpected source: food banks.



Traversing inaccessible terrain and the interference of wild elephants, the refrigerated trucks of&nbsp;<a href="https://www.foodbankingkenya.org/" target="_blank" rel="noreferrer noopener">Food Banking Kenya</a>&nbsp;are able to overcome numerous obstacles with the support of local government guides. And by working with local churches and other institutions, the food bank can distribute much-needed food to the peripatetic&nbsp;Maasai, before they move on to pastures anew.



From maize and rice to fresh fruits and vegetables, the food provided offers immediate relief from the rising insecurities facing communities like the&nbsp;Maasai. Yet, much of the food that eventually reaches this community was not originally grown for this purpose.



Instead, it is largely sourced from many of Kenya’s farms, which experience around 40 per cent of their production ending up wasted, largely post-harvest. Juxtapose this against the reality that a similar percentage of Kenyans face food insecurity every day, and it becomes more apparent that food banks can play an important role in addressing both issues through food redistribution.



Africa’s food banks can bridge the gap between farms with surplus food and communities without. But, although Food Banking Kenya’s&nbsp;<a href="https://www.foodbankingkenya.org/?page_id=21" target="_blank" rel="noreferrer noopener">Agricultural Recovery Programme</a>&nbsp;prevented over 400,000 kilograms of fresh fruits and vegetables going to waste on the country’s farms in 2021, more effective support is needed to truly make a dent in Africa’s mountain of food waste.



This is because the dual climate and hunger challenges facing the&nbsp;Maasai&nbsp;are not unique to their community alone, but are symptomatic of the rising burden being placed on Africa’s already strained food systems.



The continent, like many parts of the world, suffers not from a lack of food – but a lack of connectivity between the food it produces, and its most vulnerable communities.



Organizations which can bridge this gap, like food banks, are not yet fully understood or appreciated by governments, leaving much unfulfilled potential. Meanwhile, reducing food waste also helps minimize the agricultural sector’s carbon footprint, as it alone is responsible for up to&nbsp;<a href="https://www.fao.org/3/bb144e/bb144e.pdf" target="_blank" rel="noreferrer noopener">8 per cent</a>&nbsp;of global greenhouse gas emissions.



With greater support, Africa’s emerging food bank sector can help address rising continental food insecurity, which is exacerbated by climate change and global economic shocks.



That’s why following COP27 – recognized as ‘Africa’s COP’ – both African and global leaders must begin to fully recognize and support the role of food banks in addressing the intertwined climate and hunger crisis.



To begin with, this means adopting policies that better support food donation and distribution and the role food banks play in delivering greater nutritional security, climate change mitigation, and adaptation, across the continent. Many food producers, in Kenya and across Africa, produce a surplus of food but face barriers when preventing this from going to waste if it is not possible to sell to markets.



Better policies, as highlighted by the&nbsp;<a href="https://atlas.foodbanking.org/" target="_blank" rel="noreferrer noopener">Global Food Donation Policy Atlas</a>, such as tax incentives and liability protection for food donors, must be adopted to prevent food waste and feed communities, alongside building awareness for food banks’ role in reducing food waste across the entire food value chain.



Secondly, with the rising impact of climate change on our food systems in mind, African governments must recognize the importance of strategically including food banks in their national climate action plans, known as Nationally Determined Contributions (NDCs).



Finally, the continent’s leaders must understand and support a broader role for food banks in the functioning of Africa’s food systems. For instance, because of Food Banking Kenya’s&nbsp;<a href="https://www.foodbankingkenya.org/?page_id=21" target="_blank" rel="noreferrer noopener">school feeding program</a>, more than 7,000 Kenyan children are not only receiving nutritious diets, but are also supported to stay in school and receive an invaluable education.



Far from being just a port of last resort, food banks now stand ready to serve Africa at the nexus of two of the continent’s greatest challenges – the increasing impact of climate change and rising levels of hunger.

51585576608_b441fdc2ab_o-1

Food banks in Africa: a novel solution to the continent’s hunger and climate crises

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1301210664-820x551.jpeg" alt="" class="wp-image-397334" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1301210664-820x551.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1301210664-300x202.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1301210664-768x516.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1301210664-1536x1032.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1301210664-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>PARIS, FRANCE &#8211; FEBRUARY 09: In this photo illustration, a visual representation of the digital Cryptocurrency, Bitcoin is on display in front of the Bitcoin course&#8217;s graph on February 09, 2021 in Paris, France. The value of Bitcoin (BTC) has exceeded the threshold of 48,000 dollars for the first time in history. Electric vehicle maker Tesla has invested $ 1.5 billion in the virtual currency and will begin accepting it as payment for the purchase of its cars, the group said. The move comes days after Elon Musk temporarily changed his Twitter mini-description to simply #bitcoin. (Photo illustration by Chesnot/Getty Images)</figcaption></figure>



The collapse of the world’s third largest crypto exchange&nbsp;<a href="https://nam10.safelinks.protection.outlook.com/?data=05%7C01%7CSALAVI%40imf.org%7Ce4707283914e4532e91108dac9b31d19%7C8085fa43302e45bdb171a6648c3b6be7%7C0%7C0%7C638044068398880592%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&amp;reserved=0&amp;sdata=d9aldIV1zhwvNhuKQaePamyZGWufDy3hNlFshw%2BNTIU%3D&amp;url=https%3A%2F%2Fwww.wsj.com%2Farticles%2Fftx-tapped-into-customer-accounts-to-fund-risky-bets-setting-up-its-downfall-11668093732%3Futm_medium%3Demail%26utm_source%3Dgovdelivery&amp;utm_medium=email&amp;utm_source=govdelivery">FTX</a>, and subsequent plunge in the prices of Bitcoin, Ethereum, and other major crypto assets, is prompting renewed calls for greater consumer protection and&nbsp;<a href="https://www.imf.org/en/Publications/fandd/issues/2022/09/Regulating-crypto-Narain-Moretti?utm_medium=email&amp;utm_source=govdelivery">regulation</a>&nbsp;of the crypto industry.



Regulating a highly volatile and decentralized system remains a challenge for most governments, requiring a balance between minimizing risk and maximizing innovation. Only one-quarter of countries in <a href="https://www.imf.org/en/Publications/REO/SSA/Issues/2022/10/14/regional-economic-outlook-for-sub-saharan-africa-october-2022?utm_medium=email&amp;utm_source=govdelivery#Digital-Currency-Innovations-in-Sub-Saharan-Africa">sub-Saharan Africa</a> formally regulate crypto. However, as our <a href="https://www.imf.org/en/Blogs/chart-of-the-week?utm_medium=email&amp;utm_source=govdelivery">Chart of the Week</a> shows, two-thirds have implemented some restrictions and six countries—Cameroon, Ethiopia, Lesotho, Sierra Leone, Tanzania, and the Republic of Congo—have banned crypto. Zimbabwe has ordered all banks to stop processing transactions and Liberia directed a local crypto startup to cease operations (implicit bans).



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="538" height="538" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/crypto-map-africa-for-translation_crop.jpg" alt="" class="wp-image-421543" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/crypto-map-africa-for-translation_crop.jpg 538w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/crypto-map-africa-for-translation_crop-300x300.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/crypto-map-africa-for-translation_crop-90x90.jpg 90w" sizes="auto, (max-width: 538px) 100vw, 538px" /></figure>



<h2 class="wp-block-heading" id="h-view-the-interactive-version-here"><a href="https://www.imf.org/en/Blogs/Articles/2022/11/22/africas-growing-crypto-market-needs-better-regulations?utm_medium=email&amp;utm_source=govdelivery" target="_blank" rel="noreferrer noopener">View the interactive version here.</a></h2>



Africa is one of the fastest-growing crypto markets in the world, according to Chainalysis, but remains the smallest, with crypto transactions peaking at $20 billion per month in mid-2021. Kenya, Nigeria, and South Africa have the highest number of users in the region. Many people use crypto assets for commercial payments, but their volatility makes them unsuitable as a store of value.



Policymakers are also worried that cryptocurrencies can be used to transfer funds illegally out of the region and to circumvent local rules to prevent capital outflows. Widespread use of crypto could also undermine the effectiveness of monetary policy, creating risks for financial and macroeconomic stability.



The risks are that much greater if crypto is adopted as legal tender—as the Central African Republic recently did. If crypto assets are held or accepted by the government as means of payment, it could put public finances at risk.



The Central African Republic is the first country in Africa, and the second in the world after&nbsp;<a href="https://www.imf.org/en/News/Articles/2022/02/15/cf-el-salvadors-comeback-constrained-by-increased-risks?utm_medium=email&amp;utm_source=govdelivery">El Salvador</a>&nbsp;to designate Bitcoin as a legal tender. The measure has put the country at odds with the Bank of Central African States (BEAC)—the regional central bank that serves the Economic and Monetary Community of Central Africa (CEMAC), which the Central African Republic is a member of—and violates the CEMAC Treaty. BEAC’s banking sector supervisory body—Central Africa&#8217;s Banking Commission—has banned the use of crypto for financial transactions in the CEMAC region.



—This blog is based on the October 2022&nbsp;<a href="https://www.imf.org/en/Publications/REO/SSA/Issues/2022/10/14/regional-economic-outlook-for-sub-saharan-africa-october-2022?utm_medium=email&amp;utm_source=govdelivery">Regional Economic Outlook&nbsp;</a>for sub-Saharan Africa

Novelty Coins Representing The Bitcoin Cryptocurrency : Illustration

Africa’s Growing Crypto Market Needs Better Regulations

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="555" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/thumbnail_Bogolo-Kenwendo.jpg" alt="" class="wp-image-421409" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/thumbnail_Bogolo-Kenwendo.jpg 555w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/thumbnail_Bogolo-Kenwendo-300x297.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/thumbnail_Bogolo-Kenwendo-91x90.jpg 91w" sizes="auto, (max-width: 555px) 100vw, 555px" /><figcaption>Bogolo&nbsp;Joy&nbsp;Kenewendo is&nbsp;UN Climate Change High-Level Champions’ Special Advisor, Africa Director, and&nbsp;former Cabinet Minister of Investment,&nbsp;Trade&nbsp;and Industry of Botswana</figcaption></figure>



With&nbsp;an&nbsp;abundance of land, natural capital and a growing, young population, Africa&nbsp;is undoubtedly&nbsp;the&nbsp;nature-positive economic&nbsp;superpower of the world.&nbsp;The protection of&nbsp;Africa’s nature could drive development across the&nbsp;entire&nbsp;continent.&nbsp;A nature-positive economy is regenerative and brings widespread&nbsp;economic opportunity including&nbsp;youth employment&nbsp;while protecting biodiversity.&nbsp;With&nbsp;access to&nbsp;the&nbsp;global&nbsp;voluntary&nbsp;carbon market;&nbsp;valuing and commercializing nature assets could unlock new financing opportunities for development for the Africa.&nbsp;This&nbsp;market, operating with integrity,&nbsp;equity&nbsp;and transparency,&nbsp;could&nbsp;help Africa&nbsp;deliver on three&nbsp;fronts: nature, climate&nbsp;and development.



<h2 class="wp-block-heading">Nature: the perils and possibilities </h2>



From savannahs&nbsp;to deserts, Africa is home to numerous unique and&nbsp;rich&nbsp;habitats.&nbsp;Given this&nbsp;range of ecosystems, it is perhaps unsurprising that&nbsp;the continentis home to at least&nbsp;<a href="https://www.fao.org/3/ca7948en/ca7948en.pdf" target="_blank" rel="noreferrer noopener">25% of&nbsp;our planet’s&nbsp;biodiversity</a>.&nbsp;As well as endemic species of mammals, birds and plants, many countries boast vast and ancient tropical forests.&nbsp;Many local people and communities live in these forests and depend upon them for their subsistence and everyday livelihoods. However, the benefits of these ecosystems extend&nbsp;far&nbsp;beyond the countries within which they exist. For instance, the forests of the Congo Basin are frequently referred to as the ‘lungs of Africa’as it is&nbsp;the world’s largest carbon sink. Crossing six countries, this forest&nbsp;<a href="https://www.worldbank.org/en/news/feature/2022/10/24/journey-into-the-congo-basin-the-lungs-of-africa-and-beating-heart-of-the-world" target="_blank" rel="noreferrer noopener">absorbs&nbsp;more CO2</a>&nbsp;from the atmosphere than the Amazon.&nbsp;&nbsp;



The natural world, particularly in Africa,&nbsp;holds huge possibilities for&nbsp;driving&nbsp;climate change mitigation&nbsp;and resilience.&nbsp;However, the potential of these natural resources is&nbsp;currently&nbsp;being eroded by a seemingly insatiable global appetite for food,&nbsp;fibre&nbsp;and&nbsp;timber. Indeed,&nbsp;nearly&nbsp;<a href="https://earth.org/deforestation-in-africa/" target="_blank" rel="noreferrer noopener">fourmillion hectares</a>&nbsp;of natural forest is destroyed across Africa each year, some of this is due agricultural expansion.However&nbsp;well as&nbsp;pushing many species to the brink of extinction,&nbsp;deforestation at this scale&nbsp;also&nbsp;has consequences for food security.&nbsp;



Wholesale&nbsp;deforestation or tree clearing&nbsp;can cause&nbsp;soil degradation.&nbsp;Tree roots transport water to the earth and decomposing leaves return&nbsp;essential&nbsp;nutrients the ground. Therefore, without trees,&nbsp;soil becomes&nbsp;drier&nbsp;and less productive for crops. Coupled with rising temperatures, there is a real risk of dusty, depleted topsoil blowing away and further reducing the capacity of the land for the people who depend on it. This is one factor&nbsp;behind the current food insecurity crisis faced by many people across Africa.&nbsp;There is a critical to&nbsp;need&nbsp;to adopt&nbsp;high-yield, adaptive&nbsp;<a href="https://climatechampions.unfccc.int/call-to-action-for-climate-resilient-sustainable-food-systems-in-africa/" target="_blank" rel="noreferrer noopener">nature-positive agricultural practises</a>&nbsp;whilst not expanding agricultural land further.&nbsp;



So&nbsp;if we work with nature rather than against it, by reversing deforestation and restoring degraded land then prospects for food security, livelihoods and economies will improve.&nbsp;<a href="https://www.iucn.org/resources/file/regenerative-agriculture-report-opportunity-businesses-and-society-restore-degraded" target="_blank" rel="noreferrer noopener">A study last year</a>&nbsp;found that if regenerative agriculture is practised on just 50% of African farmland, it would equate to USD 17 billion in savings to farmers and companies each year, as well as reduction in soil erosion, improvements&nbsp;in&nbsp;water filtration rates and nitrogen content.



<h2 class="wp-block-heading">Funding climate justice</h2>



Africa’s forests&nbsp;not only benefit the continent but&nbsp;offer&nbsp;a vital&nbsp;climate service to the planet&nbsp;which we need to conserve and harness at all costs given the climate emergency upon us.&nbsp;We need to see the nature services from this continent&nbsp;generate&nbsp;significant finance&nbsp;to&nbsp;drive local development.&nbsp;



Implementing such a&nbsp;transformation&nbsp;requires a climate justice approach.&nbsp;Climate justice&nbsp;recognises that without the promotion of&nbsp;human rights&nbsp;and&nbsp;the protection of nature,&nbsp;sustainable development&nbsp;is not possible.&nbsp;Many young climate activists are leading the campaign for climate justice&nbsp;across Africa.&nbsp;Now&nbsp;we&nbsp;need investors and governments&nbsp;to&nbsp;act&nbsp;with&nbsp;the same levels of commitment and enthusiasm&nbsp;shown by&nbsp;these&nbsp;courageous&nbsp;youth&nbsp;leaders.&nbsp;



Climate justice&nbsp;requires&nbsp;the&nbsp;urgent acceleration of&nbsp;finance at scale.&nbsp;This could be found from&nbsp;public funds, especially from climate funds&nbsp;which only&nbsp;currently&nbsp;account for&nbsp;<a href="https://www.climatepolicyinitiative.org/wp-content/uploads/2022/09/Landscape-of-Climate-Finance-in-Africa.pdf" target="_blank" rel="noreferrer noopener">$1 billion (3%) of climate finance</a>&nbsp;flows to Africa,&nbsp;and multilateral development banks (MDBs)&nbsp;who could use public finance to de-risk nature investments.&nbsp;Additionally,&nbsp;agricultural&nbsp;subsidies&nbsp;in the west and on this continent&nbsp;could be&nbsp;repurposed to fund this transition.&nbsp;



One&nbsp;avenue left relatively untapped&nbsp;is&nbsp;the voluntary carbon market.&nbsp;Two thirds of Africa’s&nbsp;carbon&nbsp;credits come from only&nbsp;five&nbsp;countries.&nbsp;This&nbsp;market holds&nbsp;huge potential to unlock private capital to fund projects that simultaneously protect nature&nbsp;and&nbsp;bring economic benefits to local people and communities.&nbsp;Africa could increase its engagement with the voluntary carbon market to ensure a good price, and greater access to finance.&nbsp;



This potential has been acknowledged by numerous key stakeholders across Africa&nbsp;which has led to&nbsp;the establishment of the Africa Carbon Market Initiative (ACMI),&nbsp;formed by SE for All, UNECA and Global Energy Alliance for People and Planet with the UN Climate Change High Level Champions as a supporting partner.&nbsp;This&nbsp;was&nbsp;<a href="https://climatechampions.unfccc.int/africa-carbon-markets-initiative/" target="_blank" rel="noreferrer noopener">launched&nbsp;this week&nbsp;at COP27</a>&nbsp;as a means of enabling more money to flow to nature-based projects and power&nbsp;Africa’s development, we’resupporting the ACMI.&nbsp;The initiative will be fundamental in the&nbsp;shaping of&nbsp;Africa’s engagement in&nbsp;the voluntary&nbsp;carbon market and&nbsp;in&nbsp;the protection of its precious natural ecosystems&nbsp;going forward.



<h2 class="wp-block-heading" id="h-mobilising-carbon-and-nature-based-payments">Mobilising carbon and nature-based payments  </h2>



The voluntary carbon&nbsp;market,&nbsp;especially&nbsp;the demand for&nbsp;nature-based&nbsp;carbon&nbsp;credits,&nbsp;is growing rapidly, and if Africa doesn’t mobilise&nbsp;soon there&nbsp;is a risk that we fail to shape our engagement with the market to ensure transparency,&nbsp;integrity and&nbsp;benefits&nbsp;which are retained on&nbsp;the continent. &nbsp; &nbsp;



Carbon markets, with clear operating principles, could help power nature positive development.&nbsp;The entry point for buyers must be clearly defined to drive high integrity demand from the outset. And there should be payment for biodiversity – over and above payment for carbon. Certain innovative conservation organisations are already piloting biodiversity payments, proving that valuing nature in this way is possible.&nbsp;



Above all, it is vitally important that&nbsp;there&nbsp;are continual, widespread&nbsp;consultations with&nbsp;governments,&nbsp;buyers,&nbsp;regional carbon&nbsp;market shaping&nbsp;initiatives&nbsp;as well as&nbsp;local communities to&nbsp;shape&nbsp;the way ahead&nbsp;for the voluntary carbon market in Africa&nbsp;and&nbsp;understand where finance can make the greatest impact.&nbsp;The best nature-based projects not&nbsp;only generate high quality carbon credits, but also bring lasting benefits for&nbsp;these&nbsp;local&nbsp;communities, the custodians of biodiversity. This is the context for the formation of the African Carbon Markets Initiative (ACMI), which has&nbsp;the aim of scaling supply and demand for carbon credit projects in Africa.&nbsp;The 2030 technical potential of Africa-sourced carbon credits is estimated at up to 2,370 MtCO2e based on existing, nascent, and innovative methodologies in sectors such as forestry, agriculture, blue carbon, renewable energy, household devices, livestock, engineered removals, decommissioning of fossil fuels and more.&nbsp;



For the sake of&nbsp;all our futures,&nbsp;nature must be valued appropriately, it must be included in the valuation of the economy and factored into GDP calculations. Carbonfinance&nbsp;and other forms of payment (e.g.&nbsp;biodiversity credits)&nbsp;generated from natural climate solutions can simultaneously restore and conserve nature while also providing significant funding to national development efforts across Africa.&nbsp;Now is the&nbsp;time for the world to recognise and reward Africa for its natural capital assets.

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