Shruti Menon Seeboo / Vishal Bheeroo
The 2022 African Economic Conference (AEC 2022) kicked off on December 9 at the Intercontinental Resort, Balaclava. The event is a hybrid event and jointly organied by the African Development Bank (AfDB), the Economic Commission for Africa (ECA), and the United Nations Development Programme (UNDP). This year’s theme is “Supporting Climate-Smart Development in Africa”.
During the official opening remarks, Hon. Prime Minister of the Republic of Mauritius, Pravind Kumar Jugnauth, declared the conference officially open. He said: “I would like to emphasise that SIDS countries are particularly affected by climate change. The island is vulnerable to external shocks such as Covid and Wakashio. Following the Paris Agreement in 2015, immobilised resources to the tune of USD 150 million to support climate agenda for the past five years. In 2018, we earmarked USD 50 million to support flood mitigation measures. Mauritius sending to GDP is at 2 percent centred on environment and climate change policies coupled with initiatives such as climate change act implemented in April 2021. Bank of Mauritius has set up a climate change centre in 2021 with the aim to help assess and mitigate climate change risk. Mauritius intends to come up with environmental, social and corporate governance to promote itself as a sustainable IFC to foster environmental compliance for financial institutions. The aim is to increase renewable energy by 60 percent in electricity mix by 2030. I also urge for more resources to SIDS from development partners.”
Following him, Honourable Renganaden Padayachy, Minister of Finance, Economic Planning and Development said: “We aim to achieve 60% renewable energy by 2030 in the context of the rise of petroleum products. Mauritius is coming up with a legal framework for ESG that will be implemented in a few weeks. The Government under the Prime Minister made sustainable development as inclusive and that too, at the time of the worst Covid crisis in the start of the Ukraine war. The chapter of Covid is behind us and we will fight to strengthen resilience in the context of green projects by the African Union which augurs for the continent where we need to mobilise for finance pertaining to capacity building.”
Adding to this, during a press conference held after the opening ceremony event, Dr. Hanan Morsy, Deputy Executive Secretary and Chief Economist, United Nations Economic Commission for Africa (UNECA) said: “Today’s theme supports climate development in Africa and it comes in a timely manner after COP27. Today’s discussion will be able to digest, synthesis and provide further support to climate development in Africa. Africa needs to close development gaps by investing in energy, agriculture, water and transport where all of these are vulnerable to climate change.”
Dr Morsy highlighted, “We have seen a tsunami of global shock, the existing tool kit doesn’t work. We have to re-examine, how this can be revamped to the current global shocks. For example, removing surcharges, particularly with growing financial pressures with Ukraine situation, higher access limits, and beyond that, long-term like IMF quotas. Looking at these issues in a long-term manner, it is designed to meet long term liquidity needs, it has to be looked into. The issue is to catalyse and motivate the channels.”
She went onto add that, “The issue of balancing is key. We have a huge energy deficit in the continent. The fact hat we have 600 million, and there are many that don’t have access to energy. That’s a crucial part of moving forward. We have huge opportunities; Africa is really blessed with so many resources. We have 60% of global potential for solar, and now, with solar energy becoming more competitive, this is a huge opportunity to leapfrog others and we need to utilise this. With existing technologies and green minerals, we can boost the productions of renewable energy and storage. In DRC, the batteries are cheaper than USA and China, and this leads to less global emissions. We need to capitalise on this, use this as a basis on retailing the value chain. We can link the continent this way, sustainability forward, so that we can progress in a much better way going forward.”
Following her, Ms. Ahunna Eziakonwa, Assistant Administrator, Regional Director for Africa, United Nations Development Programme (UNDP) noted that when financial institutions were established, we didn’t have climate change, however, now, she feels its important to look at the architecture of this for developing nations.
She said, “Now, we have a threat that adds to the burden of the how well position the financial institution s are placing them. Another aspect is climate change is global and it needs a global solution. Member states made a commitment in Paris for nations to contribute the response to climate change. Developing nations have been deeply affected and they need to adapt to the changes as well. We need to continue to insist. The situation is very complex. This continent has unique consequences to align positive forces for its journey. We have to get the Africa narrative right. Private sector is part of the equation in a meaningful way. AS UNDP, we are investing in the SDG investor map. If we as a global investee, we create the balance. The member states have signed up for ending poverty, and to end it, without energy security we can’t. We have to protect and preserve the planet for the future generations. If we don’t, African will suffer from the impact. That’s why, member states are signing to the net future.”
Additionally, Professor Kevin Urama, Acting Chief Economist and Vice-President, African Development Bank Group (AfDB), pointed out that we need to think about financing architecture to respond to a different set of challenges. He said, “These have now evolved. The factors now will see global comms challenges. Everyone has to take proper actions, not just as philanthropy. The structure off global finance should be established in the global financing risk, higher risk and financing. Climate change is a risk accelerator for countries, so the ones which are more vulnerable, so risk aversion will not be allowed to flow to the climate vulnerable countries. The scale of climate finance flow is far below of what is expected in African countries. The continent requires $USD trillion. We have a climate financing gap of USD $8 billion. The scale is far below and what is required to implement after the Paris agreement is needed to be implemented. We need climate financing to omit that scale. The flow of climate finance is antithetical. CO2 emissions are corrugated with high level of economic growth, this grows as GDP grows. As GDP grows the economy gets more resilient. The AfDB is working hard to fund raise for the more vulnerable economies, on the global front, you will see about nine African countries are facing issues and this is crucial. Aa call for rethinking is crucial, we have to see how to re-channelise the SDRs. The capacity to build projects is fundamental, it’s bankable – so we need two tracks. We must do our best to increase our savings, assess much as we can for our climate adaptable changes.”
He mentioned that energy transition in Africa has to be technologically cost effective. “Each country needs an energy mix to drive its growth. Climate change is not a drag on development, it’s an opportunity to grow smarter and use better technologies and fats track development. It’s because of home grown opportunities. Rwanda has improved in ten years, fin terms of clean energy. So, we can do that. There is no trade off, there is just smart energy mix, for the smart way of the technology and way of the future. Gaining access to clean energy, natural gas must remain for our transition. It will not lead to 0.65% of our emissions on the global emissions. It doesn’t create a problem; it takes global actions. We need those global actions together with all of us here, we can make the change.”
On a concluding note, Dr Morsy said, “Africa has unified and it has happened before, African forces come together there can be change. When we unify our voices, things gets done. This is what we aim to do. When we speak as one, we are listened to, get action done, it takes a lot of work. The importance of these movements and actions should be understood, I hope this is seen as something that matters for the future generation.”
Along the same lines, Ms. Eziakonwa said, “Imagine if African leaders were to insist valuing human lives equally. As observers of global politics, we sense African lives matter less. Therefore, there is an expectation that African lives can live in poverty and the rest of the world where life is valued more then everything stops. There is a crisis of values, out of this conference that we have co created, a message to the African leaders, to insist, advocate and protect the human value, dignity of the Africans and to really promote the idea of what is good for the rest of the world it is good for Africa as well.”
