Under the auspices of the Association of African Development Finance Institutions, Development Finance Institutions 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.
According to The Punch, this was due to research that showed if quick action is not taken to lessen the consequences of climate change in the region, Africa may lose 5% to 15% of its estimated GDP by 2050.
The financial institutions announced this during the Bank of Industry-hosted Joint International CEO Forum, which is now taking place. The forum is organized by the Association of African Development Finance Institutions and the Association of Development Financing Institutions in Asia and the Pacific.
According to The Punch, bank CEOs from 33 nations on four continents attended the conference, which had as its topic “DFIs’ Strategic Role towards a Climate Smart Future.”
During his speech, AADFI Chairman, Mr. Thabo Thamane, emphasized the dire implications that the world’s least developed nations, especially those in Africa, Asia-Pacific, and Latin America may encounter.
The AADFI Chairman painted a dire picture of the situation at hand, pointing out that the negative impacts of climate change affect food and water security, human health and safety, food and water security, and sustainable socio-economic development globally and ideas.
“The fact that the world is experiencing the detrimental effects of climate change is no longer news,” he declared. Global threats exist to human health and safety, food and water security, and sustainable socioeconomic growth.
According to reports, the world economy could lose more than 18% of its present GDP by 2048 if effective measures are not implemented to mitigate climate change. The least developed countries, especially those in Africa, Asia-Pacific, and Latin America, will be most hit.
For example, Africa’s GDP is predicted to decline by 5% to 15% by 2050, and the continent will need to spend $10–30 billion a year on climate adaptation by 2030. Additionally, it is predicted that the ASEAN and Asia regions are projected to lose 26.5 per cent and 37.4 per cent of their GDP by 2048 if immediate action is not taken to mitigate the effects of climate change.
