Africa could be facing a significant economic decline, and climate change is playing a crucial role. Severe weather conditions like cyclones, floods, and droughts are devastating African countries, forcing them to spend between 2% and 9% of their budgets to respond to these extreme events. Sadly, things are expected to worsen in the coming years, according to a report by the United Nations.
Despite Africa contributing less than 4% of global greenhouse gas emissions, it is home to 17% of the world’s population. This means that many nations have limited capabilities to deal with the impacts of climate change. Moreover, the report estimates that the continent will need over $3 trillion in investments by 2030 to adapt to climate change and curb emissions.
The situation is dire. In Malawi and Mozambique, a punishing cyclone has claimed over 225 lives, displaced over 100,000 people, and destroyed infrastructure and property. In the east and Horn of Africa, a debilitating drought has put the region in the throes of a famine.
The report identifies climate change, alongside the war in Ukraine and a global economic slowdown, as key factors that have led to Africa’s economic decline from a growth of 4.6% in 2021 to just 3.6% in 2022.
However, hope remains. Developing carbon credits, where companies and governments pay into reforestation schemes to offset their emissions, could create millions of jobs and provide a viable solution to raising funds to combat climate change in Africa.
THINK LIKE AN ECONOMIST!
Q1. What happened to Africa’s rate of economic growth between 2021 and 2022.
Q2. Explain the link between climate change and economic growth.
Q3. Discuss the view that it should be the responsibility of high-income economies to pay for the clean-up of climate change.
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