Financing climate change: The African way

As Africa grapples with the severe impacts of climate change, the continent is seeking innovative strategies to build climate resilience and secure its future. Despite contributing only 2 to 3 per cent of global greenhouse gases, Africa is the region most affected by climate change due to inadequate investments in climate finance. Funmi Dele-Giwa, the Director of Legal and Regulatory Affairs at Onafriq, shed light on the pressing need for significant financial investments to address the challenges posed by climate change. According to Dele-Giwa, Africa requires an estimated $200 to $400 billion annually by 2030 to combat the loss and damage caused by climate change. This funding is imperative for the continent to enhance its ability to adapt to climate change impacts and develop resilient infrastructure. To achieve this, Dele-Giwa emphasized the importance of African nations taking initiative in investing in climate finance, rather than solely relying on commitments from developed countries. The lack of climate resilience in Africa is further compounded by challenges in intra-Africa trade. With diverse countries, borders, and currencies, intra-Africa trade faces obstacles that hinder economic growth and development. Dele-Giwa highlighted the significance of breaking down trade barriers and promoting regional economic cooperation through initiatives like the African Free Trade Zone. By facilitating intra-Africa trade and enhancing financial infrastructure, Africa can reduce its reliance on external markets and strengthen its economic resilience. In addressing the dual goals of development and climate commitments, a climate-centric financial architecture plays a crucial role in supporting African countries' mitigation and adaptation efforts. By providing specialized financing for climate-related projects, such as renewable energy initiatives and climate-smart agriculture, this architecture aims to assist nations in combating the impacts of climate change effectively. Looking ahead, Dele-Giwa expressed optimism for Africa's future in climate change resilience. She emphasized the importance of engaging in discussions and implementing innovative solutions to safeguard the environment while promoting economic growth. By adopting sustainable practices and prioritizing climate-friendly policies, African nations can pave the way for a brighter and more resilient future for the continent and its future generations. As the African continent continues to face the harsh realities of climate change, the urgency to mobilize significant financial resources and implement innovative strategies remains paramount. With a collective commitment to building climate resilience, Africa stands poised to overcome the challenges posed by climate change and foster sustainable development for generations to come.