56th Session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development
Theme:
Financing the transition to inclusive green economies in Africa: imperatives, opportunities and policy options
Statement
By
Antonio Pedro
Deputy Executive Secretary – Programme Support
United Nations Economic Commission for Africa (ECA)
Victoria Falls, 28 February 2024
Excellencies,
Distinguished delegates,
Ladies and gentlemen
It is my honor to welcome you to Victoria Falls, Zimbabwe, for the forty-second meeting of the Committee of Experts of the Conference of Ministers of Finance, Planning and Economic Development being held on the theme of ‘Financing the transition to inclusive green economies in Africa: Imperatives, opportunities, and policy options’.
But first, allow me to thank the people and government of Zimbabwe for hosting this very important gathering.
Since our last Conference of Ministers, the world has fallen deeper into economic fragility, climate change, conflict, and distrust. Sadly, Africa has not been spared from these global trends.
As most of you know, the continent faces disproportionate burdens and risks arising from climate change-related events and patterns. These include prolonged droughts, devastating floods, and out-of-season storms – all of which cause massive humanitarian crises and deepen our economic vulnerabilities.
The frequency of these natural disasters reminds us that we are living in an unprecedented era in human history, characterized by critical social and environmental issues. For these reasons, we must accelerate the adoption of just and sustainable transitions, which require long-term structural changes and adequate investment.
Excellencies,
Distinguished delegates,
The issues we face today are particularly acute because the global financial system is inadequate and has completely failed Africa.
In spite of this, we are equally reminded that we have the ability to create our own solutions to our problems, no matter how small they may be. That should be our collective focus as we continue the fight to reform global systems.
We have, therefore, a unique opportunity to actively transform our countries by transitioning into inclusive, low carbon, and resource-efficient economies. In practice, this can be achieved by combining environmental commitments with climate action - socio-economic commitments with poverty eradication and reducing inequalities. And we must break away from being exporters of raw materials.
The transformative entry points that can have catalytic and multiplier effects across all the SDGs are as follows:
Firstly, we urgently need to transform our food systems – According to FAO, Africa hosts 60 percent of the world's uncultivated arable land and is home to 9 percent of global freshwater sources. However, the continent continually suffers from rising hunger, post-harvest losses and widespread malnutrition. Furthermore, shifts in agro-ecological zones due to climate change have affected several breadbaskets in Africa impacting on our food sovereignty and resilience.
To transform our agricultural and food systems at scale, we must prioritize the development of regional value chains by de-risking investment and fast-tracking the implementation of the AfCFTA. These measures will help to insulate the continent from global food security shocks.
Secondly, we need to enhance energy access and affordability - Less than 2 percent of global clean energy investments flow to Africa. Meanwhile, over 600 million Africans, representing 53 percent of its population, do not have access to electricity. This sobering truth, after 60 years of independence for most African countries, cannot be allowed to continue. We must embrace the transition to affordable renewable energy by making the most of our solar, wind and geothermal resources as well as our green hydrogen potential. This would make our products globally competitive by meeting the most stringent carbon adjustment measures.
Thirdly, we must increase digital connectivity and inclusion. Internet penetration on the continent remains low, with only 40 percent of Africans using the internet – revealing a digital divide that prevents our member States from taking full advantage of the digital age and accessing technological solutions that are available elsewhere.
Fourthly, education systems must be transformed. As most of you know, by 2030, young Africans are expected to constitute 42 percent of the world’s youth. With such demographics, when many parts of the world are struggling with aging populations, we urgently need to secure the future of our youth by empowering them with the knowledge and skills for the jobs of the future. To do this, we must undertake comprehensive foresight analysis that will inform the transformation of education systems and curriculums.
Fifthly, we must create jobs and enhance social protection – According to ILO, Africa has the largest rate of unemployed youth. 11.2 percent of Africans between 15 and 24 years are unemployed, with the number as high as 80 percent in some African countries. To mitigate this problem, governments must pursue integrated, comprehensive industrial policies and private sector development strategies that create jobs for young people and improve the transition from school to work.
Lastly, we must embolden our response and collective action on climate change, biodiversity loss and pollution - The Nairobi Declaration acknowledged that climate change is the single greatest challenge facing humanity and the single biggest threat to all life on Earth. The Declaration calls for the valorization of our natural capital, potentially making it an important asset-class to expand our fiscal space, starting with the development of credible carbon credit markets.
At the right price, the latter could generate investment of up to USD100 billion per annum, creating 100 million jobs by 2050. The same opportunity exists with biodiversity credits, where Africa can become a price maker rather than price taker, if the right kind of investments were made.
Excellencies,
Distinguished delegates,
It is clear that we face seemingly insurmountable obstacles – but our resolve and collective action must equal the task at hand. We already have the natural capital to overcome our challenges - From tropical forests or mangroves, in Zimbabwe, Cabo Verde, the Congo Basin and the Sahel, to industrial parks and special economic zones that have access to lithium, cobalt, solar irradiation and wind power. With an abundance of arable land, carbon credits and biodiversity credits, green hydrogen and geothermal resources, our renewable and non-renewable resources, offer us the pathways to green and sustainable transitions.
Working in close partnership with the African Union, African multilateral banks and other stakeholders, we are making this happen in several countries on the continent. To make a difference, we need more scale and ambition, supported by a pipeline of credible projects and initiatives, well designed industrial policies, with science, technology and innovation at the centre.
With these remarks, allow me to express my confidence that practical solutions to financing the transition to inclusive green economies in Africa, will be found in this room.
Thank you for your attention !!!