Climate Change Grants For Africa Is A Good First Step. But We Must Do More
author: Desta Lakew, group director of partnerships and external affairs at Amref Health Africa; and Alvin Tofler Munyasia, climate researcher at AGNES
African countries are at a crossroads, facing unsustainable debt burdens, huge climate adaptation and development needs, and at the heart of these problems are the voices of young people who are impatient for change and are increasingly letting their leaders know at this point.
exist Kenya, Nigeria and Uganda Earlier this year, protesters took to the streets to protest against measures to repay foreign debt that left no room for development. Across the continent, citizens are demanding better leadership, governance and accountability in the face of rising poverty, unemployment and food insecurity, all of which are exacerbated by factors such as climate change and its impact on health.
exist 12th African Conference on Climate Change and DevelopmentDemands for climate justice focused on sustainable financing, with delegates calling on development finance providers to provide grants rather than loans (even loans with little or no interest) to Africa to address the impacts of climate change.
It is estimated that the African continent requires US$50 billion in investment annually to meet its adaptation needs. However, Only $11 billion received on average per year. African governments and their development finance partners should focus on increasing flows of grants and highly concessional financing, while exploring innovative models such as carbon markets/pricing, where appropriate; performance-linked bonds; debt-for-adaptation swaps; new insurance products; and Guarantees related to climate risks.
Publicly sourcing climate finance in the form of grants and avoiding adding to the country’s unsustainable debt is a critical first step in ensuring equitable support for vulnerable communities. But this cannot be the only step. as asserted Nairobi Declaration and Call to Action on Climate Change: “Financing needed for green growth in Africa exceeds borrowing capacity of national balance sheets“. The problem is too big and the window for change is too small to wait for others to do the right thing for Africa.
If we are to close this gap, we have to think differently. To create a financing framework that combines financial resources with specific development challenges, we need globally coordinated action and a localized approach that understands the nuances of individual country needs.
We should issue the following four calls to action to donor countries and international financial institutions:
Increase grant-based financing – Africa’s public and publicly guaranteed debt has surged since 2008. In 2022, foreign debt will exceed US$1 trillion, and the median foreign debt of each country has doubled, reaching nearly 50% of GDP. today, more than half of the countries Sub-Saharan Africa is facing an unsustainable debt burden, spend more The focus is on servicing debt rather than providing resources to key social sectors.
Different ways of thinking include increasing grant-based public financing, but doing so in a way that targets those countries that are most in need, particularly those facing debt distress and those that are ineligible for loans because of their debt levels.
Increase preferential financing – Increased concessional financing is critical for low- and lower-middle-income countries with limited access to public resources and capital. This is especially true for countries with a dynamic private sector, which allows them to better manage concessional lending.
between estimates 20 and 30 African countries If temporary liquidity support is available, it may be possible to resolve debt challenges. Increased concessional financing can boost economic growth, help prevent bankruptcies, and create more fiscal space to fund climate adaptation efforts.
Develop a strategic, transparent and actionable national growth plan – African countries must be transparent about the use of concessional funds or grants and use clear methods to prioritize investments. Few African countries are willing to develop their own Health National Adaptation Plan For example, this will give them better access to financing aimed at protecting the health of their people from the effects of climate change by: health adaptation plan. State-led growth plans based on return-on-investment analysis models can help countries negotiate better terms with private creditors by demonstrating their investments to stimulate development while maintaining fiscal discipline.
Participate in Debt Relief – Providing debt relief to create fiscal space is a controversial approach. For countries facing liquidity problems but with the potential to get out of debt by obtaining financing at reasonable rates, there are different forms of relief, but they cannot write off past debt. Forward-looking lending programs that promote growth, improved coordination among financial institutions, support for bilateral lenders to restructure debt, and rebalancing borrowing conditions for private creditors to reasonable levels are some of the solutions that may be adopted under public-private philanthropic partnerships to mobilize climate finance .
Climate change is a global problem that requires global solutions that put local interests at the heart. Africa’s contribution to the climate change crisis is minuscule, less than 4%, but for all of us, the battle depends on Africa. It’s time for the rest of the world to recognize and invest in the continent’s climate action efforts. African leaders must also listen to the voices of youth and prioritize collective action. Our future depends on it.
