Actionable Plans Needed to Incorporate Climate-Resilient Products into African Business Models
Key Highlights :
The Association of African Development Finance Institutions (AADFI) and the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) have called for actionable plans to incorporate climate-resilient products into African business models as part of solutions to address climate finance needs and derisk sustainable investments in the region. This is due to the fact that Africa may lose 5 per cent to 15 per cent of its projected GDP by 2050 if immediate actions are not taken to mitigate the effects of climate change in the region.
The financial institutions made this known at the ongoing Joint International CEO Forum of the AADFI and the ADFIAP hosted by the Bank of Industry in Abuja. The event attended by bank CEOs from 33 countries across four continents was themed, “DFIs’ Strategic Role towards a Climate Smart Future.”
The AADFI Chairman, Mr Thabo Thamane, while delivering his address, underscored the severe consequences that least developed countries, particularly those in Africa, Asia-Pacific, and Latin America, could face. He noted that the adverse effects of climate change threaten human health and safety, food and water security, and sustainable socio-economic development globally.
Mr Thamane painted a gloomy picture of the issue at hand, noting that reports predict that if strategic actions are not taken to combat climate change, the world economy will lose more than 18% of its current GDP by 2048, and the least developed countries, particularly those in Africa, Asia-Pacific, and Latin America, will suffer the worst consequences.
In order to address the issue, the AADFI Chairman called for actionable plans to incorporate climate-resilient products into African business models. He noted that such plans would help to address climate finance needs and derisk sustainable investments in the region. He also called on African countries to invest in renewable energy sources, such as solar and wind power, to reduce their dependence on fossil fuels and to create jobs in the renewable energy sector.
In conclusion, the AADFI and the ADFIAP have called for actionable plans to incorporate climate-resilient products into African business models as part of solutions to address climate finance needs and derisk sustainable investments in the region. This is due to the fact that Africa may lose 5 per cent to 15 per cent of its projected GDP by 2050 if immediate actions are not taken to mitigate the effects of climate change in the region. Such plans will help to reduce the negative effects of climate change on African countries and to create jobs in the renewable energy sector.
