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African Development Bank Unveils In-Depth Country Reports on Africa’s Climate Change and Green Growth Financing Needs

by Swati Gupta

September 30, 2023 24

In anticipation of the 28th United Nations Conference on Climate Change (COP 28), the African Development Bank Group has introduced a series of comprehensive Country Focus Reports (CFRs). These reports aim to provide African policymakers with valuable insights and recommendations as they prepare for the global event, which is scheduled to take place in Dubai from November 30th to December 12th. Under the theme “Mobilising Private Sector Finance for Climate and Green Growth in Africa,” these CFRs delve into country-specific economic analyses and policy suggestions to strengthen Africa’s active participation in COP 28.

Prof Kevin Urama, Chief Economist and Vice President of the African Development Bank Group, emphasized that these reports are intended to facilitate the development of “sound, practical, and implementable policies” that can enhance private sector financing for climate change mitigation and green growth across the continent. As COP 28 approaches, the CFRs offer independent, validated analyses and recommendations for each African nation, ensuring evidence-based negotiations during discussions on climate finance and green transitions at the global level.

The CFRs encompass a range of short, medium, and long-term policy proposals aimed at accelerating economic growth and bolstering resilience to various shocks. These reports provide both governments and potential investors with up-to-date, accurate data to inform their decisions regarding policies and investments.

Given that climate change is considered one of the most urgent existential threats to Africa’s inclusive growth and sustainable development, this year’s CFRs explore strategies to leverage private sector resources and natural capital in order to bridge the climate finance gap. This, in turn, will facilitate the transition to an inclusive, robust, and sustainable green economy.

Ferdinand Bakoup, Acting Director of Country Economics at the African Development Bank, noted that the Country Focus Reports for 2023 build upon the African Economic Outlook 2023, which was launched in May, and the subsequent Regional Economic Outlooks introduced in July. These CFRs offer in-depth, country-level analyses and policy recommendations that are poised to influence policy design, as well as shape future projects and programs in African nations.

Through a combination of continental, regional, and country-specific reports, the African Development Bank Group aims to rectify information imbalances that often arise from generalizations about the diverse countries within Africa. The CFRs spotlight strategies for governments to enhance their macroeconomic performance and outlook while catalyzing private sector investments and tapping into natural capital to support climate action and green growth initiatives. These strategies encompass a range of innovative financing instruments, including green bonds, debt-for-climate swaps, green banks, blended finance, carbon markets, and more.

The African Economic Outlook (AEO) 2023 and the Regional Economic Outlooks have previously underscored the resilience exhibited by numerous African economies, despite facing a series of compounding challenges in recent years. These challenges have included the ongoing COVID-19 pandemic, the enduring impacts of climate change, global conflicts, financial market volatility, rising debt vulnerabilities, and more. The newly introduced Country Focus Reports now provide even more specific insights for each African nation, equipping them with the information needed to navigate these complex challenges effectively.

In conclusion, the African Development Bank’s release of the Country Focus Reports for 2023 represents a significant step in Africa’s efforts to address climate change and promote green growth. By offering tailored insights and recommendations for each country, these reports empower African nations to make informed decisions, secure financing, and contribute actively to the global discussions on climate action and sustainability at COP 28. As the continent confronts the multifaceted challenges of our time, the CFRs serve as a valuable resource for shaping a more resilient and sustainable future for Africa.