Africa needs $2.5trn climate finance by 2030, says UNECA

Hanan Morsy, chief economist, United Nations Economic Commission for Africa (UNECA), says Africa will be $2.5 trillion short of the finance it needs to cope with climate change by 2030.

Morsy spoke on Thursday at the Conference of African Ministers of Finance, Planning and Economic Development (COM2024) in Zimbabwe.

She said Africa has contributed the least to greenhouse gas emissions but the continent is affected the most by climate change.

Morsy said the continent attracts only two percent of global investments in clean energy despite needing $2.8 trillion by 2030.

The UN official added that African countries pay about 1.7 percentage points higher interest on debt than other countries.

“We end up in a vicious circle with investment shortfalls increasing exposure risk and worsening impact, further eroding fiscal space and raising finance costs,” she said.

“Despite producing low emissions compared to other continents, climate change is costing African countries 5% of gross domestic product (GDP) annually.

“The situation is further compounded by heavy public debt. Countries are spending more servicing their debt than on climate action.”

On his part, Claver Gatete, UNECA executive secretary, called for a global financial reform.

“We must address the issue of unfair risk perceptions and credit ratings that offer Africa limited borrowing options,” Gatete said.