De-risking African cities from imminent climate risks

Africa faces an imminent threat as cities continue to be buffeted by multiple climate risks, highlighting the urgent need for proper mitigation strategies and investments to combat climate change. In a recent interview with CNBC Africa, Malle Fofana, Director for Africa & Head of Programs at the Global Green Growth Institute, discussed the challenges and opportunities in de-risking African cities from climate hazards and the crucial role of cities in climate change adaptation. Fofana emphasized the need for increased efforts and investments in Africa, pointing out that investors often perceive the continent as high-risk with a lack of efficient local financial mechanisms to de-risk potential opportunities. He highlighted the untapped potential in sectors such as energy and climate-smart agriculture, stressing that current investments in Africa are only scratching the surface of what is possible. One key point raised in the interview was the importance of developing green city strategies to enhance resilience in urban areas. Fofana explained that with two-thirds of the population expected to live in urban areas by 2050, cities face high exposure to climate hazards, making it essential to plan and implement green infrastructure projects across sectors like transport, waste management, and green buildings. Fofana also discussed the challenges of mobilizing financing for green cities, particularly in countries where climate change may not be the top priority. He highlighted the need to design decentralized financial mechanisms that can attract private sector investments in green projects, such as low-carbon transport and waste management systems. The lack of adequate financial support and green funds in the continent remains a significant hurdle that needs to be addressed. Scaling up green initiatives in cities requires proven models with clear business plans to attract investors and reduce perceived risks. Fofana stressed the importance of transforming good projects into bankable green projects to increase investor interest and support. By speaking the language of investors and implementing de-risk mechanisms, cities can leverage financing for sustainable and resilient infrastructure projects. The funding gap for climate change adaptation and mitigation in Africa is significant, with an estimated $2.3 trillion needed to implement Nationally Determined Contributions (NDCs). Fofana underscored the importance of building investment pipelines and supporting SMEs, which are crucial for job creation in the region. The lack of access to finance for SMEs, especially in sub-Saharan Africa, poses a challenge that calls for adapted financial instruments and increased green partnerships to drive green entrepreneurship and sustainable growth. In conclusion, Fofana called for a cohesive and integrated approach involving government policies, financial mechanisms, and green partnerships to accelerate the transition to a greener and more resilient future in Africa. The time to act is now, as African cities face escalating climate risks that demand immediate attention and collective action.