<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/IMG-5370-820x547.jpg" alt="" class="wp-image-423327" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/IMG-5370-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/IMG-5370-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/IMG-5370-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/IMG-5370-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/IMG-5370.jpg 870w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Dr. Ahmed touring the new Africa CDC Headquarters in Addis Ababa, Ethiopia</figcaption></figure>



Our efforts and achievements over the past year have laid the groundwork for accelerated progress on our core ambitions, including transformative regional investments and enhanced global representation and participation.



31 January 2023 marked the sixth anniversary of the establishment of the Africa Centers for Disease Control and Prevention (Africa CDC) by the Assembly of Heads of State and Government of the African Union. Reflecting on the past twelve months leading up to this anniversary, we can proudly highlight swift reactions to health emergencies, and investments in resilient systems, while noting areas for further action. Successes include upgraded and more efficient disease response; expanded partnerships; improved regional capacity in laboratory infrastructure; workforce development and progress towards local manufacturing and distribution of medical supplies. Major Africa CDC milestones for 2022 included the expansion of our mandate to become an autonomous health institution of the African Union; the authority to declare a Public Health Emergency of Continental Security; the launch of our Non-communicable Diseases (NCD), Injuries Prevention and Mental Health Promotion Strategy; expanded implementation of our Saving Lives and Livelihoods Initiative; the launch of our Framework for Antimicrobial Resistance; the Call to Action on Strengthening Public Health Emergency Operations Centres; and our successful in-person convening of the second annual international Conference on Public Health in Africa (CPHIA 2022).



Epidemiology and Disease Response



The May 2022 Mpox (Monkeypox) outbreak in non-endemic countries mainly in Europe and North America, was declared a public health emergency of international concern in July, and by the end of the year had spread to 110 countries. Since the beginning of 2022, Africa recorded <a href="https://africacdc.org/disease-outbreak/outbreak-brief-26-mpox-in-africa-union-member-states/">more than 1250 confirmed cases and 226 deaths</a> across eight endemic countries (Cameroon, the Central African Republic, the Democratic Republic of the Congo, Gabon, Ghana (identified in animals only), Cote d’Ivoire, Liberia, Nigeria, the Republic of the Congo, and Sierra Leone), in environments with limited testing and vaccine availability, once more highlighting the inequities in global health response. Africa CDC worked with the Nigerian Centers for Disease Control (NCDC) and the African Society for Laboratory Medicine (ASLM) to <a href="https://africacdc.org/news-item/africa-cdc-organizes-first-training-on-real-time-pcr-based-monkeypox-virus-mpxv-testing-for-20-african-union-member-states/">train 20 Member States</a> on diagnostics in June and provided test kits and sequencing support. We are grateful to the government of the Republic of Korea and the Korea Disease Control and Prevention Agency (KDCA) for their timely donation of <a href="https://africacdc.org/news-item/the-republic-of-korea-to-donate-first-batch-of-mpox-vaccine-to-africa/">50,000 Mpox vaccine doses</a> during my November 2022 visit. By the end of the year, five of the eight affected Member States had recorded no new cases over three months.



Ebola presented another major health threat with an April 2022 outbreak in the <a href="https://africacdc.org/news-item/the-democratic-republic-of-congo-declared-ebola-virus-disease-evd-outbreak-in-mbandaka-equateur-province/">Democratic Republic of Congo</a>, and in <a href="https://africacdc.org/news-item/uganda-reported-an-outbreak-of-ebola-virus-disease/">Uganda</a> in September 2022. Africa CDC helped to quickly respond to both outbreaks and within <a href="https://africacdc.org/news-item/the-14th-ebola-outbreak-declared-over-in-equateur-province-democratic-republic-of-the-congo/">10</a> and <a href="https://africacdc.org/disease-outbreak/final-outbreak-brief-16-sudan-virus-disease-in-uganda/">18</a> weeks respectively both were under control. Africa CDC provided technical support including epidemiologists and laboratory scientists, as well as community engagement teams. The combination of robust national responses and end-to-end support from the Africa CDC demonstrates the potential of close collaboration with Africa Union Member States. We also supported the Government of Uganda in convening a <a href="https://africacdc.org/news-item/african-health-ministers-take-steps-to-curb-the-spread-of-the-ebola-disease-outbreak/">High-Level Emergency Ministerial</a> meeting in October, bringing together 11 neighboring Member States to endorse <a href="https://africacdc.org/download/communique-of-the-high-level-emergency-ministerial-meeting-on-cross-border-collaboration-for-preparedness-and-response-to-ebola-virus-disease/">key measures</a> such as contact tracing, information sharing, simulation exercises, and joint training of first responders. We also supported the vaccine trials for the Sudan strain of the virus. The challenges of conducting trials at the tail end of an outbreak, such as the dearth of enrollable cases, highlight the need for rapid and flexible approaches before and during outbreaks.



While the worst waves of the COVID-19 pandemic on the continent appear to have receded, with infections and fatalities down from the most recent <a href="https://who.maps.arcgis.com/apps/dashboards/0c9b3a8b68d0437a8cf28581e9c063a9">peaks</a> of June 2022, Africa CDC continued to work throughout the year on Member States’ <a href="https://africacdc.org/covid-19-vaccination/">vaccine coverage</a> (reaching 45% of eligible population by January 2023) and surveillance capacity, including through genomic sequencing. The Africa CDC Pathogen Genomics Initiative (Africa PGI) has supported more than <a href="https://africacdc.org/institutes/ipg/">130,000 sequences</a> covering most Member States and SARS-CoV-2 strains. Africa PGI is housed within Africa CDC’s <a href="https://ipg.africacdc.org/">Institute of Pathogen Genomics</a> and supports African national public health institutions (NPHIs) with sequencing tools, training, lab and data infrastructure.



We are also applying our genome sequencing work to Malaria and other infectious diseases such as tuberculosis and HIV/AIDS. In September 2022, PGI co-hosted a <a href="https://africacdc.org/news-item/strengthening-the-malaria-genomics-workforce-in-east-africa/">training course</a> on Malaria Genomic Epidemiology with 34 participants from 7 East African countries. I remain optimistic that successful 2021 <a href="https://www.who.int/news/item/20-04-2021-rts-s-malaria-vaccine-reaches-more-than-650-000-children-in-ghana-kenya-and-malawi-through-groundbreaking-pilot-programme">pilot programs</a> of the RTS,S Malaria vaccine in Ghana, Kenya, and Malawi will soon lead to a wider rollout supported mainly by African financing for procurement and delivery. An initial test of Africa’s commitment to contribute further to health financing has been set by <a href="https://www.gavi.org/news/media-room/gavi-board-approves-funding-support-malaria-vaccine-roll-out-sub-saharan-africa">GAVI’s</a> commitment of nearly <a href="https://reliefweb.int/report/world/over-1-million-african-children-protected-first-malaria-vaccine">$160 million</a> to vaccine access – a similar allocation from African actors would be a positive step in this direction.



We remain acutely aware of other disease threats affecting our continent &#8211; non-communicable diseases (NCDs) such as cancer, diabetes, and cardiovascular issues form a growing share of the continental disease burden and mortality. NCDs were responsible for 37% of deaths in Africa in 2019, and together with injuries and mental health issues, <a href="https://africacdc.org/download/africa-cdc-non-communicable-diseases-injuries-prevention-and-control-and-mental-health-promotion-strategy-2022-26/">increased</a> from 18% to 30% of disability-adjusted life years (DALYs) between 1990 and 2017. Furthermore, mental health conditions and NCDs are closely intertwined through shared risk factors, chronicity, and stigmatization. The launch of our <a href="https://africacdc.org/download/africa-cdc-non-communicable-diseases-injuries-prevention-and-control-and-mental-health-promotion-strategy-2022-26/">NCD, Injuries Prevention and Mental Health Promotion Strategy</a> demonstrates our effort to balance our focus and investments, and our commitment to providing technical support, funding advocacy, and peer review to improve national responses to disease threats.



To ensure that our Member States are always ready to rapidly detect any outbreak, and effectively coordinate response to health emergencies, Africa CDC facilitated a <a href="https://africacdc.org/news-item/call-to-action-strengthening-public-health-emergency-operations-centres-in-africa/">Call To Action: Strengthening Public Health Emergency Operations Centres in Africa</a>, that was launched by H.E. President Hakainde Hichilema of Zambia. This Call was then followed by a high level meeting of ministers of health who agreed on steps to <a href="https://africacdc.org/wp-content/uploads/2022/09/Communique_-CALL-TO-ACTION.pdf">operationalize the Call To Action</a>.



Partnerships



Our <a href="https://ipg.africacdc.org/initiatives/africa-pathogen-genomics-initiative-africa-pgi">Africa PGI initiative</a> is supporting broad collaboration with Member States. The initiative was launched in 2020 and is enabled by a <a href="https://africacdc.org/news-item/us100-million-africa-pathogen-genomics-initiative-to-boost-disease-surveillance-and-emergency-response-capacity-in-africa/">$100 million, four-year PPP</a> comprising support from the Bill &amp; Melinda Gates Foundation, the US Centers for Disease Control, equipment and training from Illumina and Oxford Nanopore, and computing resources from Microsoft. Our $1.5 billion <a href="https://africacdc.org/news-item/saving-lives-and-livelihoods-initiative-hits-one-year-milestone/">Saving Lives and Livelihoods Initiative</a> with the Mastercard Foundation commenced implementation in Kenya in July, Ethiopia and Lesotho in August, and in November 2022 we rolled out activities including mobile vaccination sites, vaccine safety surveillance and risk communication across <a href="https://africacdc.org/news-item/africa-cdc-saving-lives-and-livelihoods-initiative-expands-implementation-in-southern-africa/">ten countries</a> in Southern Africa.



In July 2022, the World Bank approved a <a href="https://www.worldbank.org/en/news/press-release/2022/07/21/africa-centres-for-disease-control-receives-a-100-million-boost-from-the-world-bank-to-strengthen-continental-public-hea">$100 million support programme</a> for Africa CDC to enhance our institutional technical capacity so that we can intensify our support to African Union Member States in preparing for, detecting, and rapidly responding to disease threats and public health emergencies. The grant is particularly timely as Africa changes her strategies for health security through the <a href="https://africacdc.org/news-item/africa-calls-for-new-public-health-order/">New Public Health Order</a> and as we operationalize Africa CDC as an autonomous health institution of the African Union.



In December 2022, Africa CDC hosted the 2nd International Conference on Public Health in Africa (<a href="https://cphia2022.com/">CPHIA 2022</a>) in partnership with the Rwanda Ministry of Health at the Kigali Convention Centre in Rwanda. The conference welcomed more than 2500 in-person delegates from 90 countries and featured more than 30 sessions and 50+ side events on topics ranging from pandemic preparedness to vaccine production, non-communicable diseases, and strengthening NPHIs. One notable outcome was the signing on the sidelines of a <a href="https://www.mmv.org/newsroom/press-releases/medicines-malaria-venture-and-africa-cdc-sign-memorandum-understanding">memorandum of understanding</a> between Africa CDC and Medicines Malaria Venture (MMV) towards African manufacturing of malaria medicines. The huge interest in the CPHIA, particularly in Africa, has clearly indicated that the continent has come of age to chart its own scientific and public health horizons.



Workforce and infrastructure



Recent Africa CDC health worker support efforts include our Institute of Workforce Development (IWD)&#8217;s establishment of a Clinical Community of Practice for COVID-19 and other diseases &#8211; including a webinar series that drew 9,000 participants from 50 African countries, and the roll-out of a virtual knowledge hub.



We have also rolled out a wide range of capacity development initiatives to support various African healthcare professionals. These include the <a href="https://africacdc.org/kofi-annan-global-health-leadership-programme/">Kofi Annan Global Health Leadership Programme</a> in partnership with the Kofi Annan Foundation; the Global Nursing Leadership program in partnership with Harvard&#8217;s T.H. Chan School of Public Health; funded masters programs for epidemiologists and biostatisticians in partnership with EDCTP; and an <a href="https://africacdc.org/news-item/africa-cdc-susan-thompson-buffett-foundation-partner-to-strengthen-sexual-and-reproductive-health-epidemiology-in-africa/">$11.5 million</a> grant from the Susan Thompson Buffett Foundation for capacity building in maternal and reproductive health epidemiology.



Our Takeaways



Despite its challenges, the past year has been a productive and exciting one for Africa CDC, with meaningful progress made on many of our core ambitions. Successfully implementing our vision of a New Public Health Order for Africa in 2023 and beyond entails a greater focus on larger and longer term resourcing for African healthcare systems, particularly through domestic financing of NPHIs; accelerating tangible investments in regional production of medical products to take advantage of agreements such as the Africa Continental Free Trade Area (AfCFTA); and a stronger regional leadership and global representation role for Africa CDC, especially in the coordination of public health emergency responses. As Africa’s public health agency, our regional leadership role and global participation should now be brought up to par with those of our counterpart organizations covering large regions such as the CDCs of the US, EU, and China. As the Africa CDC of tomorrow, we will have more active participation in global health financing and research decisions, on top of our well-developed coordination and collaboration roles across the continent. In 2023, we will thus work towards securing the policies, partnerships, and resource commitments to convert ambitious programme plans into tangible successes and continue to pursue greater self-reliance and self-advocacy in the pursuit of improved public health outcomes for all Africans and beyond.

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Africa CDC Today – Reflecting on 2022

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="618" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/Sithembile-Ntombela-Acting-Chief-Executive-Officer-for-BRANDSA-opinion-piece.-2-820x618.jpg" alt="" class="wp-image-423090" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/Sithembile-Ntombela-Acting-Chief-Executive-Officer-for-BRANDSA-opinion-piece.-2-820x618.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/Sithembile-Ntombela-Acting-Chief-Executive-Officer-for-BRANDSA-opinion-piece.-2-300x226.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/Sithembile-Ntombela-Acting-Chief-Executive-Officer-for-BRANDSA-opinion-piece.-2-119x90.jpg 119w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/Sithembile-Ntombela-Acting-Chief-Executive-Officer-for-BRANDSA-opinion-piece.-2-768x579.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/Sithembile-Ntombela-Acting-Chief-Executive-Officer-for-BRANDSA-opinion-piece.-2.jpg 1066w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Sithembile Ntombela, Acting Chief Executive Officer for Brand South Africa</figcaption></figure>



South Africa, like all countries, doesn’t exist in isolation, and its brand identity can be both positively and negatively affected by global perceptions of its partners, collaborators and socio-economic allies. South Africa, viewed as part of a greater network, is a more attractive investment opportunity than positioning the nation as an isolated unit. Having the security that South Africa has the support of the continent is an assuring proposition for potential global investors. And while Brand South Africa remains strong in communicating nation pride messaging, creating a positive continental image, and promoting an image of a unified Africa, is as important a means of attracting investment.



The African Continental Free Trade Area (AfCFTA), the core project behind the African Union’s Agenda 2063, provides the opportunity to expand Africa’s economy by $3.4 trillion, predominantly by eliminating tariffs on intra-Africa trade. A unified African economy demands unified messaging, thus the development of the AfCFTA relies on the strength of the continent’s image and intra-continental confidence.



Buy African, Invest African, and Support African is the message that all nation brand custodians should be amplifying in bringing to life opportunities and awareness of the AfCFTA. “African Made” is a term that intrinsically communicates continental unity, and it is a strategy that is currently being executed as part of the Agenda 2063 goals. Brand South Africa started this journey last year during its Nation Brand Forum wherein stakeholders from a few of African continent attempted to define the central idea of the African continent so as to identify a strategic angle that would amplify the African story.



Brand South Africa will work in collaboration with the African Union Commission (AUC), and the African Prosperity Fund in order to strategically rollout “African Made” messaging and attractively position the idea of “Buying African Made”. The collaboration will include input from the The Information and Communication Technology (ICT) directorate, which has the main objective of bridging the digital and connectivity divides in Africa. Ultimately the unity being projected needs to be informed by an infrastructural and communicative unity, co-created through efficient access models under ICT research.



The more unified the messaging, the more attractive the product. The more people, including the layman on the streets, who understand the AfCFTA vision, the more buy-in would be realised. Promoting awareness around the vision posits an integral communication job to be implemented by Brand South Africa and other continental agencies tasked with the promotion of their country brands, investments or tourism.



Just as South Africa doesn’t exist in isolation, neither do the goals of Agenda 2063. They require collaboration on both infrastructural and ideological lines across the continent. Yes, the European Union (EU) benefits from its intra-trade agreements, but it also benefits from the external and internal perceptions of European unity and strength. This doesn’t diminish the member countries’ own national pride; it just translates that pride into one of intra-continental confidence.



“African Made” and the unified messaging intrinsic to “Buying African Made” is key to projecting this confidence within the African continent, and from a global perspective. It is a communicative cornerstone critical to the success of AfCFTA and Agenda 2063 &#8211; it engenders unity by manifesting unity.



“African Made” is not just a hollow marketing phrase. It’s a messaging product that not only communicates unity but requires it to be successful.&nbsp; It’s the messaging that will advance Africa’s competitive advantage and reputation.



About Brand South Africa



Brand South Africa is the official marketing agency of South Africa, with a mandate to build the country’s brand reputation, in order to improve its global competitiveness. Its aim is also to build pride and patriotism among South Africans, in order to contribute to social cohesion and nation brand ambassadorship.&nbsp;

Sithembile-Ntombela-Acting-Chief-Executive-Officer-for-BRANDSA-opinion-piece.-2

AFRICAN MADE:  REVIEWING SOUTH AFRICA’S ROLE IN AFRICA’S ECONOMIC PROSPERITY

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="499" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/D2D2WHXSKNIGTJZ76POEB5X2ZE.jpg" alt="" class="wp-image-421980" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/D2D2WHXSKNIGTJZ76POEB5X2ZE.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/D2D2WHXSKNIGTJZ76POEB5X2ZE-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/D2D2WHXSKNIGTJZ76POEB5X2ZE-131x90.jpg 131w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African President Cyril Ramaphosa speaks at the Summit on Economic Empowerment for Persons with Disabilities in Johannesburg, South Africa, December 8, 2022. REUTERS/Sumaya Hisham</figcaption></figure>



Dear Mr. President,



This open letter brings together many of South Africa’s most significant manufacturers and retailers of food and other essential products, such as quick service restaurants and medicines.



We take our responsibility to feed and sustain the nation very seriously. We work tirelessly, night and day, to produce food and household products, secure healthcare products, and to ensure they are always available in our stores when customers need them.



The consumer goods industry’s contribution to the GDP is significant and is also the country’s largest employer. Millions of people depend on us for their livelihoods.



We are alarmed and dismayed by the levels of load shedding which we have all had to endure over the past decade, and which have escalated catastrophically in recent months.



While we have maintained our operations and supply chains so far by using emergency power generators, this has been at an unsustainable financial cost. It is crippling our businesses, and will in the end mean much higher prices for consumers, who are already under severe financial strain.



The deterioration of other essential infrastructure – including water, roads, rail, and policing – all make our tasks, and those of thousands of other businesses around the country, even more difficult.



If this crisis continues, we will not be able to guarantee stable supplies of food, medicines and other essential goods. The government needs to understand this, rather than believe we can maintain business as usual.



We require urgent and decisive action from government to solve the crisis, and specific steps to ensure that the consumer goods industry can fulfil its role as an essential service for every family in the country.



These steps must include: • rapid implementation of the plans already in place to solve the overall energy crisis • the removal of regulatory red tape and escalating indirect taxes such as the health promotion levy to enable investment and business sustainability • address the deterioration of essential infrastructure such as including water, roads, rail, and policing • a suspension of the fuel duty levy and road accident fund for the consumer goods businesses and value chain, for as long as we suffer regular load shedding. This is a critical sector that should be considered for fuel rebates similar to the mining, agriculture, fisheries and forestry sectors • effective tax and other incentives to install localised renewable energy at small and medium scale • action to ensure that critical infrastructure, such as essential food production, medicines and distribution facilities are not only exempted from load shedding but are prioritised on the safety and security list, and • accelerate the fight against illicit trade across the economy as it reduces the tax base and deprives government of crucial revenue at this critical time.



We look forward to hearing your plans for action in the 2023 State of the Nation Address (SONA), giving due consideration to the proposals put forward in this letter by the Chief Executive Officers who are signatories.



We will continue to work tirelessly to sustain our customers and communities.



We will support government where we can and ask urgently for decisive action from you.



Signed:



Gareth Ackerman Co &#8211; Chair 



Johann Vorster Co &#8211; Chair 



Zinhle Tyikwe CEO



Issued on behalf of the following industry CEO’s: BAT East and Southern Africa Bidfood Massmart Famous Brands Exclusive Books Magaliescitrus Mars Burger King Coca Cola Tiger Brands Pick n Pay Retailers (Pty) Ltd Shoprite PepsiCo OBC

South African President Cyril Ramaphosa speaks at the Summit on Economic Empowerment for Persons with Disabilities in Johannesburg

Open Letter To President Cyril Ramaphosa From The Ceos Of Member Companies Of The Consumer Goods Council Of South Africa (Cgcsa)

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="599" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/nardos-bekele-thomas-1-e1670506114997-1200x876-1-820x599.jpeg" alt="" class="wp-image-422869" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/nardos-bekele-thomas-1-e1670506114997-1200x876-1-820x599.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/nardos-bekele-thomas-1-e1670506114997-1200x876-1-300x219.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/nardos-bekele-thomas-1-e1670506114997-1200x876-1-123x90.jpeg 123w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/nardos-bekele-thomas-1-e1670506114997-1200x876-1-768x561.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/nardos-bekele-thomas-1-e1670506114997-1200x876-1.jpeg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">AUDA-Nepad CEO Nandos Bekele-Thomas</figcaption></figure>



A well-known Ethiopian proverb claims that “regret, like a tail, comes at the end”. It succinctly states what I believe to be a universal truth and a reflection of what we, as Africans, tend to look at the grim situation enveloping the world today. It’s true that the current developments in the global community have forced global leaders to focus their efforts inwards and away from the African continent. However, that is not cause for regret, quite the contrary: it’s an opportunity for Africa to stand on its own two legs.



Anyone following the discussions at this year’s World Economic Forum is likely to encounter a new, unpleasant-sounding word: Polycrisis. The term gained popularity last year to describe recent historical events which were until then, treated separately &#8211; The Covid-19 pandemic, the Russian war in Ukraine, a general downturn in global stability with widespread financial trouble, and the ever-present climate emergency…



Regardless of what you choose to call it, the current global situation presents us with a multifaceted challenge for which no conventional wisdom exists. During the global financial crisis of 2008, many countries around the world passed austerity measures, tightened the fiscal belt and waited for the downturn to pass. But in our current climate no such predictions can be made, as the compounded effects of health, security, financial and climate crises are simply too complex to fit any previous model.



A proactive, rather than a reactive approach is therefore needed to deal with this challenge, particularly seeing how some of its components are likely to get worse if left unchecked. This is particularly true in Africa, where the 2020s brought a serious wobble to decades of sustained financial and security gains. Rather than waiting for the situation to improve, African leaders must come together and begin shaping the future of the continent.



The upcoming 2nd Dakar Financing Summit for Africa’s Infrastructure Development set to take place in Senegal will provide us with such an opportunity. Back in 2014, the inaugural edition saw several key breakthroughs concerning the implementation of the PIDA Priority Action Plan, including fast tracking and financing 16 mega regional infrastructure projects.



With a new Priority Action Plan agreed upon in 2021 by the African Union and major partners like the African Development Bank and the UN’s Economic Commission for Africa, expectations are high for this year’s Dakar Forum. The Forum seeks to bring together infrastructure stakeholders from all over Africa to strengthen political support from state actors and financial commitments from development institutions and private investors for regional infrastructure projects.



One cannot overstate the crucial role played by infrastructure in the future development of Africa. Rather than seeing the so-called polycrisis as an obstacle, we should treat it as a reminder of the importance and urgency of developing our continent. The fragility of modern supply chains was laid bare last year when the war in Ukraine sent shockwaves of food shortages and spiralling prices across the world. There has never been a better moment for Africa to step up its agricultural production and amplify its exports, but once again, outdated, or non-existent infrastructure is holding us back.



The efficient transport of goods, people, services, and ideas is fundamental to any economy, and progress in any number of fields will remain stunted while these basic requirements are not met. Experts reckon that Africa needs to invest about USD 100bn a year in infrastructure if it is to fulfil its economic potential and realize the ambitious African Continental Free Trade Area (AfCFTA). Let’s mobilise our own financing and show that these projects are indeed bankable.



Global relations are based on reciprocity and a lopsided power dynamic will always lead to unequal terms. Africa must rise on its own if it expects to be treated like an equal. The last few decades saw amazing transformations in some parts of Africa, while others still lag behind. An organised push for regional infrastructure could level those differences by opening the continent and allowing development to spread in a more equitable manner.



While the world is going through troubled times, there is no need to give up and let either fate or chance have its way. Instead, Africans should heed the call of this polycrisis and work together towards our common goals, regardless of what history throws in our direction. And the road which will take our continent towards its bright future starts with building the road itself.

nardos-bekele-thomas-1-e1670506114997-1200×876-1

The Polycrisis is Not the End of the Road for African Infrastructure

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Pieter-Bensch-Sage-1-820x541.jpg" alt="" class="wp-image-422528" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Pieter-Bensch-Sage-1-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Pieter-Bensch-Sage-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Pieter-Bensch-Sage-1-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Pieter-Bensch-Sage-1-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Pieter-Bensch-Sage-1-1536x1014.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Pieter-Bensch-Sage-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption"><a href="https://www.linkedin.com/in/pieter-bensch-1aa3a64/" target="_blank" rel="noreferrer noopener">Pieter Bensch</a>, Executive Vice President for Sage Africa &amp; Middle East</figcaption></figure>



South Africa’s shortfall of power generation capacity has reached beyond crisis levels this year. We’ve experienced more days and hours of load shedding in 2022 than in any other year, but we also saw the longest stretch of unbroken load shedding across September and October. It’s clear there will be no quick fixes for this long-standing challenge.



In crisis lies the opportunity for organisations of all sizes, including small and medium businesses (SMBs). The public conversation often focuses on the challenges and costs of load shedding for smaller businesses and how these can be mitigated. But a more empowering way to look at it is as a chance for SMBs to champion and lead the shift to a cleaner, more sustainable energy world.



The&nbsp;<a href="https://www.sage.com/en-za/company/sustainability-and-society/planet/" target="_blank" rel="noreferrer noopener">SME Climate Impact Report</a>&nbsp;commissioned by Sage and launched in partnership with Oxford Economics and the International Chamber of Commerce (ICC), shows SMEs&#8217; footprint totalled 29% of non-household emissions in South Africa when greenhouse gases generated in their supply chains were considered.



As such, SMBs can play a key role in the transition to cleaner energy. Let’s start with the enormous demand we see in the market for renewables. From independent power producers (IPPs) building wind and solar farms to feed into the grid to large companies self-provisioning power to solar installations for SMBs and homes – there are plenty of growth opportunities.



In 2020, electricity generated from renewables amounted to&nbsp;<a href="https://researchspace.csir.co.za/dspace/handle/10204/11865?show=full" target="_blank" rel="noreferrer noopener">a mere 10.5%</a>&nbsp;of the South African national total. One researcher&nbsp;<a href="https://www.globaldata.com/media/power/south-africa-power-supply-security-rely-gas-based-capacity-renewables-replace-coal-low-power-market-growth-expected-2035-says-globaldata/#:~:text=Renewable%20power%20capacity%20is%20expected,capacity%2C%20according%20to%20GlobalData.%E2%80%9D" target="_blank" rel="noreferrer noopener">forecasts</a>&nbsp;that South Africa’s renewable power capacity will increase at a compound annual growth rate of 10.7% from 2021 to 2035 to reach an estimate of 40.6GW by 2035, which will constitute 48.3% of total installed capacity.



<h2 class="wp-block-heading">Opening the floodgates</h2>



President Cyril Ramaphosa recently opened the floodgates for renewables investment, announcing a broad package of reforms. These include making it easier for large power users to self-provide up to 100MW of embedded power generation, launching an Eskom feed-in tariff for solar users to sell power to the grid, and acceleration of IPP rollouts.



This creates enormous opportunities for entrepreneurs and SMBs throughout the supply chain, from providing and installing systems to manufacturing components and playing a role in power storage and provision. The market is far from saturated, and skills are in short supply, creating compelling entrepreneurial prospects in an industry with a bright future.



The pace of innovation in renewables has been astonishing; we could envisage SMBs playing a leading role in driving further progress. One of the lessons we could take from the load shedding crisis is that avoiding another monopoly would be highly desirable. Instead, we could foster a renewables ecosystem with competition at every level – from installation to power provision.



In fact, driving entrepreneurship is essential for a just transition. Government, labour and communities are justifiably concerned about the loss of fossil fuel jobs and the poor getting left behind in the renewable energy revolution. An inclusive renewables industry would help address these challenges by potentially creating&nbsp;<a href="https://gwec.net/report-capturing-green-recovery-opportunities-from-wind-power-in-emerging-economies/" target="_blank" rel="noreferrer noopener">250 000 new jobs over the next 25 years</a>&nbsp;and off-grid power solutions for rural communities.



<h2 class="wp-block-heading">Harnessing renewables in your business</h2>



Of course, not every SMB will want to become directly involved in the renewables industry, but every SMB uses electricity. Herein lies an opportunity for SMBs to evaluate ways of harnessing alternative energy to improve business resilience, sustainability, and efficiency. Rapid renewables innovation means a strong business case for going solar.



For most businesses, barring those with heavy machinery or commercial fridges, solar panels and battery backup are excellent backup power sources. They’re cleaner, quiet, and don’t depend on expensive fuel. What’s more, solar offers small businesses the prospect of becoming increasingly independent from the grid and reducing their power bill over time.



Some municipalities, such as Cape Town, allow businesses to feed power back to the grid for a rebate. Over time, solar installations will pay for themselves, even if you don’t factor productivity through load shedding into the equation. Becoming more sustainable is also a good reputational move that enhances an SMB’s standing with customers and suppliers.



Tools such as&nbsp;<a href="https://www.sage.com/en-za/news/press-releases/2022/10/sage-acquires-spherics-to-help-smbs-measure-and-cut-their-carbon-emissions/" target="_blank" rel="noreferrer noopener">Spherics</a>, a carbon accounting solution from Sage, can help businesses easily understand and reduce their environmental impact. Though not yet available in South Africa, it will help SMBs manage their carbon footprint and the data shows where the low-hanging fruit is for SMBs in making the transition.



<h2 class="wp-block-heading" id="h-renewable-energy-is-key-to-securing-energy-future">Renewable energy is key to securing energy future</h2>



Given that coal and nuclear plants are built on decade-plus timespans, solar and wind are the best options to address South Africa’s power shortfall rapidly. But the backstory is that we need to gradually wean ourselves from fossil fuels to meet our climate emission promise to the global community and play our part in addressing climate change.&nbsp;



It’s clear the future is renewable. Energy reform is an opportunity for businesses to increase growth and become more sustainable. SMBs need to take their rightful place at the energy reform table, so they don’t get left behind.&nbsp;Government and big business would be wise to tap into the resourcefulness and innovation of the SMB sector to help drive a faster and more successful transition.

Pieter-Bensch-Sage-1

The renewables revolution offers a brighter future for South African SMBs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-820x547.jpg" alt="" class="wp-image-422404" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Chido-Munyati-Panel-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum</figcaption></figure>



By Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum, and Landry Signé, Executive Director and Professor, Thunderbird School of Global Management in Washington, DC; Senior Fellow, The Brookings Institution; Co-Chair, World Economic Forum Regional Action Group for Africa.



At a time of multiple, overlapping global challenges – from climate change to energy shocks to rising inflation and a cost-of-living crisis – the Africa Continental Free Trade Area (AfCFTA) offers promise not only for the region but for the world.



The AfCFTA, established in 2018, will create the world’s largest free trade area, bringing transformative change and tremendous opportunity to African economies and business environments. Its adoption and implementation will accelerate intra-African trade and develop regional and local value chains, creating new business dynamics that offer investors access to a population of 1.7 billion people with combined business and consumer spending reaching $6.7 billion by <a href="https://www.brookings.edu/book/unlocking-africas-business-potential/">2030</a>.



Global businesses have an important role to play in accelerating the implementation of the AfCFTA, according to a new report from the World Economic Forum, in collaboration with the AfCFTA Secretariat and Forum partners. The report outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in successfully entering and expanding in this area. &nbsp;



The AfCFTA Secretariat selected four key sectors that represent high-potential opportunities for companies looking to invest in Africa: the automotive industry, agriculture and agro-processing, pharmaceuticals, and transportation and logistics. These four sectors are expected to see rapid acceleration in production and trade volumes under the AfCFTA, given that they have a high potential to meet local demand with local production. Until now, local demand for these goods and services is currently being met through relatively high-cost imports, despite the region’s growing and lower cost production capabilities.



While the AfCFTA offers business opportunities in each of these four sectors, companies will also need to understand how the changing environments under the trade agreement will affect their strategies for success in the region. The World Economic Forum is actively working toward implementing trade and investment tools that are aligned with the negotiation process of the AfCFTA by identifying areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.



For example, public-private collaboration centered around implementing AfCFTA trade-facilitating provisions can <a href="https://www.tradefacilitation.org/">facilitate</a> trade in goods, on-the-ground initiatives can address fragmented investment regulatory frameworks, and bringing together groups committed to 4IR technology, digital payments, and information exchanges can support digital trade. To improve the societal outcomes of trade, the Forum’s Inclusive Trade Initiative is uncovering best practices that can be shared with AfCFTA negotiators and businesses. And an <a href="https://www.weforum.org/reports/accelerating-decarbonization-through-trade-in-climate-goods-and-services">inventory of 25 key climate technologies</a> and with country-specific studies helps identify opportunities for trade to align with circular economy goals. &nbsp;&nbsp;



Companies can also look to five new operational tools as they adjust to the changing dynamics under the trade agreement.



The AfCFTA Guided Trade Initiative has facilitated the start of trade in eight countries for 96 products, providing support and guidance on customs clearing and while gathering information on how to make the process more efficient for the private sector.



The Pan-African Payment and Settlement System enables users to make near-instant payments in their local currency without needing to convert to a foreign currency or use a third-party institution.



The AfCFTA Adjustment Facility Fund is a combination of a base fund, general fund, and credit fund, that assists governments and the private sector in addressing short-term disruptions through financing, technical assistance, and grants and compensation funding.



The AfCFTA Private Engagement Strategy helps companies to better understand the overall continental strategy as well as the specific initiatives and policy recommendations in emerging sectors that the AfCFTA is prioritizing.



And the Rules of Origin Manual &amp; E-Tariff Book sets the guidelines for the rules and procedures for determining the origin status of goods and makes information on duty rates easily searchable and comparable.



In addition, analysis of on-the-ground experience from companies including Agility, AFC, Coca-Cola, DP World, Menzies, Novartis, OCP, UBA, Volkswagen, and Yara, has revealed three main strategies that have led to success in Africa and can provide invaluable lessons to companies planning to seize the opportunities opened by the trade agreement.



The first strategy is to form local partnerships with governments, local institutions, universities and others to create regional hubs and host R&amp;D at local universities. The second strategy is to leverage key trade accelerators such as investing in local infrastructure and logistics, with opportunities ranging from food storage to partnering with local organizations to move various parts of the value chain onto the continent. The third strategy is to form integrated ecosystems by developing end-to-end value chains around local resources, which de-risks projects and creates an environment where shared infrastructure can support multiple projects in different sectors.



The global private sector must be prepared for the changes in trade dynamics ahead on the continent to seize the opportunities that the AfCFTA brings, achieving business success while helping to usher in a new era of economic development.



This article is part of the <a href="https://www.weforum.org/events/world-economic-forum-annual-meeting-2023">World Economic Forum’s Annual Meeting 2023</a>.

Centre for the Fourth Industrial Revolution, Rwanda Launch

A new era for global business and investment in Africa

Faced with rising demand for food by its growing population that is expected to cross the two-billion mark by 2050, amidst intensifying effects of climate change, Africa has no choice but to focus more on nature-friendly production.



This is the only sustainable way out for a continent that is already under intense pressure as it struggles to feed itself. According to the UN Food and Agriculture Organisation, Africa bears the heaviest malnutrition burden with an undernourishment prevalence rate of over 20%, compared to the global average of 9.9%.



With the food and nutrition insecurity projected to further worsen, production has to be significantly stepped up, urgently. Unfortunately, with the increasing frequency and intensity of extreme weather conditions due to biting effects of climate change, this boost in production can no longer be oblivious of its impact on the environment that also afflicts food systems. Food systems are estimated to contribute about a third of greenhouse gas emissions that cause climate change, with Africa particularly vulnerable. &nbsp;



Continuing with the traditional approaches, such as expanding cropland as a means of boosting production is no longer sustainable and risks serious consequences. Between 2003 and 2019, 75% of sub-Saharan Africa’s crop production growth came from the expansion of cropland, with only 25% coming from crop yield improvements. Such unsustainable patterns of production intensification have also compounded fragilities in Africa’s food systems.



On the other hand, the weighted average price of fertilizer has doubled between June 2021 and April 2022, putting a strain on farmers across the continent. The average application rate of mineral fertilizer in sub-Saharan Africa is 14 kilogrammes per hectare, which is at least 10 times lower than corresponding figures in South Asia, EU, South America, and East Asia. Limited availability and high prices of fertilizers has dampened prospects of the continent taking this route towards increasing productivity.



This leaves nature-positive production, and regenerative agriculture in particular, as a plausible option for the continent. It presents an opportunity to intensify production to address the current food crisis by sustainably boosting outputs to cater for growing consumption needs.



According to studies by the Africa Regenerative Agriculture Study Group, 2040 scenarios show that a 13% increase in yields from a regenerative agriculture scenario would translate into 62 million dry matter tonnes of additional crop production per year. This is in addition to potentially supporting 5 million full-time jobs by 2040, with over USD 70 billion of gross value being added per year.



Although many initiatives have been developed to promote nature-positive agriculture systems in Africa, smallholders have been slow to adopt the technological practices. Studies show that the certified land under organic agriculture in Africa is around 2.1 million hectares, which represents only 0.2% of the continent’s total agricultural area.



AGRA’s regenerative agriculture projects in Kakamega, Nandi and Vihiga counties of Kenya have seen about 4,451 hectares being put under sustainable land management practices, including conservation agriculture, agroforestry, soil and water conservation and integrated soil fertility management. However, despite the range of benefits from transitioning to regenerative and nature positive production bring clear, intrinsic barriers to the adoption of the practices by smallholder farmers still exist. This call for more efforts to bring more land under sustainable farming practices.



To effectively shift food systems to become more nature-positive, it depends largely on a conducive policy environment to deliver necessary incentives and de-risk the transition. This calls for a few key policy actions.



First, given that most regenerative practices involve permanent and long-term investments, it will be crucial to institute appropriate property rights and land tenure arrangements. This will not only provide the needed security to encourage investments, but also facilitate de-risking of the transition.



Secondly, we need to drive policy and regulatory reforms that level the playing field and incentivize regenerative agriculture. Current agricultural policies tend to disproportionately serve industrial agriculture over regenerative agriculture. Hence, we need to get the policy and institutional architecture right to support the needed transition.&nbsp;



The third imperative is focus on providing support for farmers during their beginning or transitioning years of regenerative farming. We need to invest more in decentralized and diverse food systems infrastructure, to create additional market and operational capacity for farmers pursuing regenerative farming. The technical resources offered through extension and public research institutions need to be improved to meet specific needs of farmers. National extension systems will also need to be appropriately resourced and equipped to provide tailored and specialist services to smallholder farmers to ease adoption hurdles.



Finally, we need to shape demand for food towards more sustainable diets. For instance, there should be mechanisms to support market development, raise consumer awareness and promote the consumption of products produced under regenerative farming systems.



This shift is necessary, since boosting productivity without a sustainability lens will continue to aggravate food systems challenges.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="661" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-820x661.jpg" alt="" class="wp-image-422387" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-820x661.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-300x242.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-112x90.jpg 112w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-768x619.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-1536x1239.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/Vine-Mutyasira-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Dr Vine Mutyasira is Program Officer for Policy Quantitative Modelling and Data Analytics at AGRA.</figcaption></figure>

Vine-Mutyasira-1

Africa needs more nature-friendly food systems

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="616" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-820x616.jpg" alt="" class="wp-image-422289" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-820x616.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-768x577.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-1536x1153.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/a-plant-sprouting-from-a-handful-of-coins-investm-2022-12-01-21-16-04-utc-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A plant sprouting from a handful of coins. Investment, finance, and accounting concept</figcaption></figure>



As the provider of food, nutrition, and jobs for millions, Africa’s food systems are a central pillar of livelihoods and GDPs across the continent. Yet, they are at the forefront of the global climate crisis.



Climate change has reduced productivity growth of African food systems by 34 per cent since 1961. Still, continued warming to 2C this century could cause crop yields to fall by up to&nbsp;<a href="https://www.un.org/africarenewal/magazine/special-edition-agriculture-2014/despite-climate-change-africa-can-feed-africa" target="_blank" rel="noreferrer noopener">20 per cent</a>&nbsp;by 2030, endangering countless lives and livelihoods alike.



In the face of this urgent challenge, there remains a huge gap in Africa’s current climate adaptation funding, estimated to be within the region of&nbsp;<a href="https://gca.org/wp-content/uploads/2022/11/GCA_State-and-Trends-in-Adaptation-2022_Adaptation-Finance-Flows-in-Africa.pdf" target="_blank" rel="noreferrer noopener">US$41.3 billion</a>&nbsp;– annually – for the entire continent.



To bridge this climate finance gap, African countries must urgently adopt a range of innovative policy, financial, and institutional solutions to encourage more investment in adaptation. The recently released Malabo Montpellier Panel&nbsp;<a href="https://www.mamopanel.org/resources/climate-finance/" target="_blank" rel="noreferrer noopener">climate finance report</a>&nbsp;analyzes policy and institutional innovations and programmatic interventions across four African countries to explore government actions toward leveraging international climate finance for food systems transformation.



Key recommendations from the report underscore the importance of securing timely, predictable, and sustainable access to finance to support adaptation across Africa’s food systems – buffering the main source of nutrition and livelihoods for many. Similarly, access to finance must go hand-in-hand with capacity building in national institutions across the region, in the public and private sectors, for sustainable outcomes.



To begin with, mobilizing greater private sector finance will prove essential in bridging the existing gap in adaptation finance. Private finance is an underutilized resource in African climate finance, yet the goal of greater adaptation for food systems cannot be achieved without it.



Currently, the African Development Bank estimates that about 75 per cent of the financing required for the successful implementation of Africa’s Nationally Determined Contributions (NDCs) – the climate commitments and goals of each individual country – needs to be provided through private investments. Despite this, there is also a lack of data to accurately capture the amount of private climate finance that is currently allocated to food systems, a fundamental drawback that must be resolved in bridging this financing gap.



Recent developments in private finance offer a path forward for unlocking future adaptation funding for African countries. For instance, the&nbsp;<a href="https://www.clarmondial.com/fsf_launch_first_investment/" target="_blank" rel="noreferrer noopener">Food Securities Fund</a>, developed by Clarmondial, provides working capital loans to agricultural aggregators such as cooperatives, processors, and traders in developing and emerging markets.



Secondly, African countries should prioritize blended finance models in raising more and better adaptation funding.



Blended finance models combine concessional capital from private or public resources to de-risk and “leverage” additional capital from other actors. Furthermore, blended finance instruments allow each party to accomplish their own objectives while at the same time contributing to common goals – in this case – climate adaptation.



According to the National Climate Funds Tracker, there are 12 national climate funds in Africa. National climate funds offer an important means to mobilize funds for adaptation by raising and blending capital from public and private sources.



Moving forward, African governments and financial decisionmakers should seek to prioritize blended finance models to boost adaptation funding. Ethiopia’s Climate Resilient Green Economy (<a href="https://www.mofed.gov.et/programmes-projects/crge-facility/" target="_blank" rel="noreferrer noopener">CRGE</a>) Facility, for example, offers a dedicated financing arm to coordinate the receipts and disbursements of finance from international sources to sectoral ministries for implementation.



Finally, African countries should adopt local climate finance models, to boost the climate adaptation of local communities who are ultimately on the frontlines of climate change.



At present, estimates suggest that only five per cent of all funding flows from international climate funds have been disbursed for locally based climate adaptation interventions on the continent. Essentially, the communities that most need this finance are not receiving it.



In 2017/18, climate finance globally reached only&nbsp;<a href="https://www.climatepolicyinitiative.org/publication/climate-finance-small-scale-agriculture/" target="_blank" rel="noreferrer noopener">US$8.1 billion</a>&nbsp;for small-scale farmers, agri-entrepreneurs, and other value chain actors serving them – despite their importance in adapting our food systems as a whole to the impacts of climate change. These figures were equivalent to only&nbsp;<a href="https://www.climatepolicyinitiative.org/publication/climate-finance-small-scale-agriculture/" target="_blank" rel="noreferrer noopener">40 per cent</a>&nbsp;of the total climate funds committed to the agriculture, forestry, and land use sectors in those years.



Governments and financial sectors across Africa must take note of recent developments to grow the amount of climate finance reaching local communities. The development of the National Fund for Environment and Climate Change (FNEC) and Community Development Support Fund (FaDEC) in Benin, offer examples for how climate finance can help support the most vulnerable local communities more effectively.



To meet the adaptation needs of Africa’s food systems, an important paradigm shift amongst the finance community, and African governments, is needed; both groups are critical and need to complement each other to achieve collective aims.



Climate adaptation is not only an opportunity to address the impacts of climate change, but also serves as a springboard to unlock the potential of food systems to deliver for lives and livelihoods across Africa.



Dr. Debisi Araba, Visiting Researcher, Imperial College London; Member, Malabo Montpellier Panel

A plant sprouting from a handful of coins. Investment, finance, and accounting concept

The African innovations unlocking new pathways to scale access to climate finance

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="499" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2-820x499.jpg" alt="" class="wp-image-421744" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2-820x499.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2-300x182.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2-768x467.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2-1536x934.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/SSAK-QAK-main-lab-Matthew-Henning-4MG-2.jpg 1638w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Professor Quarraisha Abdool Karim (L) and Prof Salim Abdool Karim (R) at the CAPRISA main laboratory in Durban, South Africa. They are two of the world’s leading AIDS researchers, with pioneering contributions in understanding the evolving HIV epidemic among young people, especially among young women while also advocating for the rights of people living with and affected by HIV.</figcaption></figure>



We can no longer ignore the connection between inequality and new HIV infections &#8211; Prof. Salim Abdool Karim, Director of the Center for the AIDS Program of Research in South Africa (CAPRISA)



In sub-Saharan Africa, every two minutes an adolescent girl or young woman was newly infected with HIV in 2021 alone. One young woman. Every two minutes. Think about that for a moment. The <a href="https://indanger.unaids.org/">In Danger</a>report should raise alarm bells for all of us.



The COVID-19 pandemic has slowed down HIV prevention and treatment in the past two-and-a-half years leading to significant impact on the control of the disease and the achievement of the <a href="https://www.unaids.org/en/resources/documents/2020/global-aids-report">95-95-9</a>5 strategy which calls for 95% of people living with HIV to know their HIV status, 95% of people who know their status to be on antiretroviral, and 95% of all patients receiving antiretroviral therapy to be virally suppressed.



While much progress has been made over the past four decades since the first HIV cases were reported, not everyone is benefitting equally from the scientific advancements that have taken place in HIV research in recent years. Notably, this progress should not be used to justify inequalities that still persist in HIV testing and treatment, even more so for the introduction of new technologies. The upcoming 2nd <a href="https://cphia2022.com/">International Conference on Public Health in Africa</a> (CPHIA 2022) December 13-15 in Kigali, Rwanda will shine the spotlight on this connection and the urgent need to focus on HIV response alongside Tuberculosis (TB), malaria and other neglected tropical diseases (NTDs).



Reducing stigma and discrimination, and increasing access to justice are critical in the global response to HIV. By combining resources and strengths to support vulnerable communities at a higher risk of exposure to HIV – such as migrants and prisoners, people who use drugs, LGBTI people, sex workers, teenagers, young people, women and children, we can work together to address the range of challenges they face and in so doing, ensure they have timely access to essential HIV care and support.



Identifying and involving these vulnerable communities lie at the heart of an effective action plan. These groups bring invaluable knowledge of the specific obstacles they face, and the potential – and sustainable – solutions to affect real long-term change. Partnerships between community-based organisations and academic institutions can provide the evidence to inform policy, programs and services to better respond to the unique realities and needs of communities, particularly the most marginalised. Such partnerships are fundamental to creating lasting health change in Africa.



From the COVID-19 response, we have learned the importance of supporting scientific innovation and promoting cutting-edge medical technologies, and making them available to people in all countries throughout the world in an affordable and timely manner. Similarly, African-led convenings, such as CPHIA 2022, will offer opportunities for researchers and public health leaders share knowledge, and strengthen scientific collaboration and innovation to reinforce stronger primary health care systems and create a conducive environment capable of responding to diseases—such as HIV —that continue to disproportionately affect vulnerable communities.



The <a href="https://www.unaids.org/en/resources/documents/2021/2021_political-declaration-on-hiv-and-aids">political declaration</a> adopted by United Nations Member States in 2021 to end inequality and get on track to end AIDS by 2030 is a clear indication that there is genuine eagerness – and action – toward reducing new HIV infection. Reaching this goal will require an integrated and holistic approach by all players to create mutually beneficial partnerships; those that seek to combine the different strengths of diverse partners to convert big ideas into bigger, impactful outcomes.



Therefore, it is important to learn from the pandemic and leverage cross-border and cross-sectoral collaborations with speed and accuracy when these challenges threaten our lives and economic well-being. &nbsp;



We owe it to the next generation to do better. We owe it to them to break the cycle of economic, social, cultural and legal inequalities and ensure an <a href="https://2009-2017.state.gov/secretary/20092013clinton/rm/2011/11/176810.htm">AIDS-free generation</a> with zero new HIV infections, zero discrimination and zero AIDS-related deaths. The goal is ambitious but achievable and vital in ending AIDS as a global health threat.



As we commemorate the 34th anniversary of World AIDS Day today (1 December) under the theme “Equalize”, I join hands with other public health leaders in every sphere and at every level in committing providing actionable solutions to the barriers that keep us from making progress and helping to end AIDS.

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Ending AIDS for the Next Generation

Africa is in a race against time on food security and the stakes could not be higher. The situation is unprecedented in my four decades of experience working in agricultural research and development.



We are faced with the longest drought in over 40 years, leaving <a href="https://www.who.int/news/item/02-08-2022-who-launches-appeal-to-respond-to-urgent-health-needs-in-the-greater-horn-of-africa">80 million people in the Horn of Africa with uncertain access to adequate nourishment</a>. In my home country of Nigeria, <a href="https://nema.gov.ng/">recent flooding</a> – the worst in a decade – has destroyed vital food supplies in Africa’s most populous nation. Hunger is again stalking the continent.



Africa’s food security is squeezed from two sides since the continent has both the lowest agricultural productivity of any region and the fastest population growth. Yields of everything from wheat to rice to cassava are well below the global average, reflecting the fact that millions of smallholder farmers lack access to the basic tools and skills that could lift them beyond subsistence.



The short-term outlook is bleak. Regional conflicts, extreme weather events and economic instability are all exacerbating the food crisis. And Russia’s invasion of Ukraine has driven up global prices for food, fuel and fertilizer, limiting the ability of African countries to finance vital imports.



Despite this, there remains an enormous untapped opportunity to put Africa’s food security on a sounder footing. The economic case for action is compelling. Investments in agricultural innovations have been shown to generate <a href="https://www.cgiar.org/news-events/news/cgiar-research-pays-off-new-report-finds-10-times-return-on-investment/">returns 10 times the amount initially invested</a>.



By rolling out agricultural solutions that are known to improve productivity – from better seeds and fertilizers to early warning systems and training for growers – farms across Africa can increase output and build long-term resilience.



According to one analysis, <a href="https://www.mckinsey.com/industries/agriculture/our-insights/winning-in-africas-agricultural-market">Africa could produce two to three times more cereals and coarse grains</a>, primarily by improving crop yields and reducing post-harvest losses. Even a fraction of that improvement would transform the continent’s food security situation and slash its current alarming dependence on imports.



The window for action, however, is limited and the need to implement change is urgent. African nations need to move away from dependency on development assistance, they need to significantly invest in agricultural research and development and for the near term, they need to select and fast-track interventions with the greatest potential to deliver both immediate gains and sustainable improvements in agriculture. This is essential to meet the demographic challenges of the years ahead.



Encouragingly, leading African institutions are now coming together to help make these productivity gains a reality. &nbsp;



The African Development Bank (AfDB), the African Union, the Forum for Agricultural Research in Africa and CGIAR – the world’s largest agricultural research and innovation network, have recently <a href="https://www.cgiar.org/news-events/news/abidjan-ii-african-development-bank-african-union-commission-cgiar-forum-for-agricultural-research-in-africa-join-forces-to-strengthen-africas-food-systems/">committed to close cooperation</a> to take African agriculture to the next level. This is welcome news.



The aim – to empower African farmers to better feed their communities – is simple, yet the prize is great. The immediate priority is to deploy proven tools at the scale of tens of millions of farmers. It is a goal that is eminently achievable. In the last three years, for example, the Technologies for African Agricultural Transformation (TAAT) scheme, which is supported by the African Development Bank and implemented by CGIAR, has delivered climate-smart seeds to 12 million farmers in 27 countries. Breeding better crop varieties is just one of a range of transformational innovations that are needed to ensure Africa’s future food security, ranging from improvements in soil fertility to better livestock management. It does not stop there, for any holistic solution it will be critical to maintain investment in research, to improve resilience to future shocks.



Leveraging the capabilities of CGIAR’s network of research centers, which benefit from the support and partnership of their host countries in Africa and beyond, Africa can achieve similar agricultural growth and food security gains seen in Asia and Latin America.



The transition to a more unified and integrated “One CGIAR” is positioning the organization to tackle increasingly complex and interconnected challenges to food security and deliver holistic solutions to smallholder farmers everywhere. I believe that smallholder farmers in Africa will benefit most from an integrated CGIAR working in partnership with African research and innovation institutions. That is why I, along with other African stakeholders and partners of CGIAR, support the call from its <a href="https://www.cgiar.org/news-events/news/cgiar-country-region-and-funding-partners-signal-strong-support-for-integration/">country, regional and funding constituents</a>, for CGIAR Centers and other parties to endorse in December an agreement that puts the integration on a clear path forward.  



Sadly, the world is not on track to meet the <a href="https://www.un.org/sustainabledevelopment/hunger/">UN Sustainable Development Goal of zero hunger by 2030</a> – and it is people in Africa who will bear the brunt of this policy failure. That is all the more reason to deploy proven technologies that can transform the fortunes of Africa’s farmers today, while maintaining critical investment in research that will provide resilience to future shocks. &nbsp;&nbsp;



Now is the right time for African decision-makers to make the smart investment decisions needed to get appropriate technologies to their farmers at scale.



Dr Nwanze has worked for more than 40 years for CGIAR and Rome-based agencies, most recently serving as President of the International Fund for Agricultural Development (IFAD), and is a former member of the CGIAR System Management Board.

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Unleashing Africa’s agricultural potential is key to food security

Although African delegates had marginal success in placing the continent’s unique needs and circumstances on the agenda of COP27, the ultimate deal to create a ‘loss and damage’ fund is a huge boost to tackle climate change.



The proposed dedicated fund will provide a framework for developed countries to compensate developing countries that have suffered the impact of climate-related damage to infrastructure. It promises to benefit Africa, a continent, disproportionately afflicted by the effects of climate change. Even as delegates from across the world, drawn from government, private sector, not-for-profits, young people, civil society, indigenous peoples, and local communities congregated to discuss the solutions, there was the backdrop of severe droughts and floods in different parts of the continent, defining the urgency.



The challenge for Africa now lies in sustaining the momentum to address ‘loss and damage’ by setting in motion the proposed fund. We need to lock in the details that will operationalise the fund, for it to begin paying out compensation to unlock its benefits, for inclusive and sustainable development that leaves no one behind. There is a great onus on the international community to turn the agreement into action in the spirit of ‘follow through’ that COP27 was about. Additionally, consideration needs to be given to widening the net of contributors to the fund beyond the developed countries to draw in the private sector, including through innovative mechanisms, such as sustainable smart finance.



Besides the opportunity presented by the ‘loss and damage’ fund, there were other glimmers of hope in advancing climate change action at COP27. These too need to be consolidated and pursued.



One such opportunity is food systems, featuring prominently in COP27 for the first time in such gatherings. We cannot win the fight against climate change unless attention is paid to holistically transforming food systems. Having it on the negotiation floor is a crucial first step in this direction. This focus needs to be sustained and explore scaling resilient systems while tackling emissions across the value chains.



In addition to this, indigenous voices were significantly represented at COP27. This needs to be built on and strengthened, knowing communities are good custodians of nature. Nature is our climate defender and we need communities to unleash this potential if we are to effectively tackle the climate crisis. We have to link the mega commitments to action at the grassroots by investing in nature-based solutions.



All these are opportunities to re-energize the fight against climate change. Africa cannot afford to relent and take its foot off the pedal. Efforts need to be sustained to scale up urgent climate action. More importantly, the continent has to continue working together to fight climate change and biodiversity loss. Now more than ever before, collective response to the climate crisis is key, to unlock investments in technology transfer, capacity building, and financial resources. We all have to work together for a better future by pursuing the opportunities unlocked by COP27.



As we tackle the climate change crisis, nature-based solutions must remain a core part of our ammunition. Natural habitats have the ability to absorb and store vast amounts of carbon. It is projected that protection, restoration, and better management of our lands and wetlands reduce up to a third of the emissions needed to limit global warming and keep the climate within safe boundaries. Natural solutions not only restore and protect vulnerable ecosystems but also positively impact the livelihoods of communities. Nature-based solutions require more climate funding, beyond the current less than 10% percent globally. In this regard, The Nature Conservancy will continue providing the expertise and the science for governments and other actors.



As Africa looks ahead to COP28 next year, delegates must prepare well to secure a more ambitious mitigation outcome. The continent needs to secure a robust global goal on adaptation and the scaling of funding to move faster and further, beyond pledges and commitments towards effective climate action.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="697" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-820x697.jpg" alt="" class="wp-image-421601" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-820x697.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-300x255.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-106x90.jpg 106w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-768x653.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-1536x1305.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/Ademola-Ajagbe-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Ademola Ajagbe is the Regional Managing Director, Africa at The Nature Conservancy</figcaption></figure>



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How Africa can build on COP27’s small wins

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-820x547.jpg" alt="" class="wp-image-421577" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/51585576608_b441fdc2ab_o-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FoodBanking Kenya volunteers distribute food items such as flour, potatoes, kales and french beans to the residents of Ilbisi located in Kajiado County, Kenya, on September 20, 2021. PHOTO © THE GLOBAL FOODBANKING NETWORK/BRIAN OTIENO</figcaption></figure>



The&nbsp;Maasai&nbsp;people of Kenya’s Great Rift Valley are some of Africa’s most well-known and culturally distinctive tribal peoples. Traditionally nomadic and pastoralist, the&nbsp;Maasai&nbsp;are self-sufficient, thriving from the production of their livestock and living off the lands they call home.



Yet, when this land fails, due to climate stress and&nbsp;<a href="https://www.reuters.com/world/africa/drought-forces-kenyas-maasai-sell-starving-cattle-pittance-2022-10-19/" target="_blank" rel="noreferrer noopener">persistent drought</a>&nbsp;rendering swathes of pastureland unviable for the grazing of livestock, the specter of hunger and deprivation follows close behind. However, for many of the&nbsp;Maasai, relief has come from what some might consider an unexpected source: food banks.



Traversing inaccessible terrain and the interference of wild elephants, the refrigerated trucks of&nbsp;<a href="https://www.foodbankingkenya.org/" target="_blank" rel="noreferrer noopener">Food Banking Kenya</a>&nbsp;are able to overcome numerous obstacles with the support of local government guides. And by working with local churches and other institutions, the food bank can distribute much-needed food to the peripatetic&nbsp;Maasai, before they move on to pastures anew.



From maize and rice to fresh fruits and vegetables, the food provided offers immediate relief from the rising insecurities facing communities like the&nbsp;Maasai. Yet, much of the food that eventually reaches this community was not originally grown for this purpose.



Instead, it is largely sourced from many of Kenya’s farms, which experience around 40 per cent of their production ending up wasted, largely post-harvest. Juxtapose this against the reality that a similar percentage of Kenyans face food insecurity every day, and it becomes more apparent that food banks can play an important role in addressing both issues through food redistribution.



Africa’s food banks can bridge the gap between farms with surplus food and communities without. But, although Food Banking Kenya’s&nbsp;<a href="https://www.foodbankingkenya.org/?page_id=21" target="_blank" rel="noreferrer noopener">Agricultural Recovery Programme</a>&nbsp;prevented over 400,000 kilograms of fresh fruits and vegetables going to waste on the country’s farms in 2021, more effective support is needed to truly make a dent in Africa’s mountain of food waste.



This is because the dual climate and hunger challenges facing the&nbsp;Maasai&nbsp;are not unique to their community alone, but are symptomatic of the rising burden being placed on Africa’s already strained food systems.



The continent, like many parts of the world, suffers not from a lack of food – but a lack of connectivity between the food it produces, and its most vulnerable communities.



Organizations which can bridge this gap, like food banks, are not yet fully understood or appreciated by governments, leaving much unfulfilled potential. Meanwhile, reducing food waste also helps minimize the agricultural sector’s carbon footprint, as it alone is responsible for up to&nbsp;<a href="https://www.fao.org/3/bb144e/bb144e.pdf" target="_blank" rel="noreferrer noopener">8 per cent</a>&nbsp;of global greenhouse gas emissions.



With greater support, Africa’s emerging food bank sector can help address rising continental food insecurity, which is exacerbated by climate change and global economic shocks.



That’s why following COP27 – recognized as ‘Africa’s COP’ – both African and global leaders must begin to fully recognize and support the role of food banks in addressing the intertwined climate and hunger crisis.



To begin with, this means adopting policies that better support food donation and distribution and the role food banks play in delivering greater nutritional security, climate change mitigation, and adaptation, across the continent. Many food producers, in Kenya and across Africa, produce a surplus of food but face barriers when preventing this from going to waste if it is not possible to sell to markets.



Better policies, as highlighted by the&nbsp;<a href="https://atlas.foodbanking.org/" target="_blank" rel="noreferrer noopener">Global Food Donation Policy Atlas</a>, such as tax incentives and liability protection for food donors, must be adopted to prevent food waste and feed communities, alongside building awareness for food banks’ role in reducing food waste across the entire food value chain.



Secondly, with the rising impact of climate change on our food systems in mind, African governments must recognize the importance of strategically including food banks in their national climate action plans, known as Nationally Determined Contributions (NDCs).



Finally, the continent’s leaders must understand and support a broader role for food banks in the functioning of Africa’s food systems. For instance, because of Food Banking Kenya’s&nbsp;<a href="https://www.foodbankingkenya.org/?page_id=21" target="_blank" rel="noreferrer noopener">school feeding program</a>, more than 7,000 Kenyan children are not only receiving nutritious diets, but are also supported to stay in school and receive an invaluable education.



Far from being just a port of last resort, food banks now stand ready to serve Africa at the nexus of two of the continent’s greatest challenges – the increasing impact of climate change and rising levels of hunger.

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Food banks in Africa: a novel solution to the continent’s hunger and climate crises

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="555" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/thumbnail_Bogolo-Kenwendo.jpg" alt="" class="wp-image-421409" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/thumbnail_Bogolo-Kenwendo.jpg 555w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/thumbnail_Bogolo-Kenwendo-300x297.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/thumbnail_Bogolo-Kenwendo-91x90.jpg 91w" sizes="auto, (max-width: 555px) 100vw, 555px" /><figcaption>Bogolo&nbsp;Joy&nbsp;Kenewendo is&nbsp;UN Climate Change High-Level Champions’ Special Advisor, Africa Director, and&nbsp;former Cabinet Minister of Investment,&nbsp;Trade&nbsp;and Industry of Botswana</figcaption></figure>



With&nbsp;an&nbsp;abundance of land, natural capital and a growing, young population, Africa&nbsp;is undoubtedly&nbsp;the&nbsp;nature-positive economic&nbsp;superpower of the world.&nbsp;The protection of&nbsp;Africa’s nature could drive development across the&nbsp;entire&nbsp;continent.&nbsp;A nature-positive economy is regenerative and brings widespread&nbsp;economic opportunity including&nbsp;youth employment&nbsp;while protecting biodiversity.&nbsp;With&nbsp;access to&nbsp;the&nbsp;global&nbsp;voluntary&nbsp;carbon market;&nbsp;valuing and commercializing nature assets could unlock new financing opportunities for development for the Africa.&nbsp;This&nbsp;market, operating with integrity,&nbsp;equity&nbsp;and transparency,&nbsp;could&nbsp;help Africa&nbsp;deliver on three&nbsp;fronts: nature, climate&nbsp;and development.



<h2 class="wp-block-heading">Nature: the perils and possibilities </h2>



From savannahs&nbsp;to deserts, Africa is home to numerous unique and&nbsp;rich&nbsp;habitats.&nbsp;Given this&nbsp;range of ecosystems, it is perhaps unsurprising that&nbsp;the continentis home to at least&nbsp;<a href="https://www.fao.org/3/ca7948en/ca7948en.pdf" target="_blank" rel="noreferrer noopener">25% of&nbsp;our planet’s&nbsp;biodiversity</a>.&nbsp;As well as endemic species of mammals, birds and plants, many countries boast vast and ancient tropical forests.&nbsp;Many local people and communities live in these forests and depend upon them for their subsistence and everyday livelihoods. However, the benefits of these ecosystems extend&nbsp;far&nbsp;beyond the countries within which they exist. For instance, the forests of the Congo Basin are frequently referred to as the ‘lungs of Africa’as it is&nbsp;the world’s largest carbon sink. Crossing six countries, this forest&nbsp;<a href="https://www.worldbank.org/en/news/feature/2022/10/24/journey-into-the-congo-basin-the-lungs-of-africa-and-beating-heart-of-the-world" target="_blank" rel="noreferrer noopener">absorbs&nbsp;more CO2</a>&nbsp;from the atmosphere than the Amazon.&nbsp;&nbsp;



The natural world, particularly in Africa,&nbsp;holds huge possibilities for&nbsp;driving&nbsp;climate change mitigation&nbsp;and resilience.&nbsp;However, the potential of these natural resources is&nbsp;currently&nbsp;being eroded by a seemingly insatiable global appetite for food,&nbsp;fibre&nbsp;and&nbsp;timber. Indeed,&nbsp;nearly&nbsp;<a href="https://earth.org/deforestation-in-africa/" target="_blank" rel="noreferrer noopener">fourmillion hectares</a>&nbsp;of natural forest is destroyed across Africa each year, some of this is due agricultural expansion.However&nbsp;well as&nbsp;pushing many species to the brink of extinction,&nbsp;deforestation at this scale&nbsp;also&nbsp;has consequences for food security.&nbsp;



Wholesale&nbsp;deforestation or tree clearing&nbsp;can cause&nbsp;soil degradation.&nbsp;Tree roots transport water to the earth and decomposing leaves return&nbsp;essential&nbsp;nutrients the ground. Therefore, without trees,&nbsp;soil becomes&nbsp;drier&nbsp;and less productive for crops. Coupled with rising temperatures, there is a real risk of dusty, depleted topsoil blowing away and further reducing the capacity of the land for the people who depend on it. This is one factor&nbsp;behind the current food insecurity crisis faced by many people across Africa.&nbsp;There is a critical to&nbsp;need&nbsp;to adopt&nbsp;high-yield, adaptive&nbsp;<a href="https://climatechampions.unfccc.int/call-to-action-for-climate-resilient-sustainable-food-systems-in-africa/" target="_blank" rel="noreferrer noopener">nature-positive agricultural practises</a>&nbsp;whilst not expanding agricultural land further.&nbsp;



So&nbsp;if we work with nature rather than against it, by reversing deforestation and restoring degraded land then prospects for food security, livelihoods and economies will improve.&nbsp;<a href="https://www.iucn.org/resources/file/regenerative-agriculture-report-opportunity-businesses-and-society-restore-degraded" target="_blank" rel="noreferrer noopener">A study last year</a>&nbsp;found that if regenerative agriculture is practised on just 50% of African farmland, it would equate to USD 17 billion in savings to farmers and companies each year, as well as reduction in soil erosion, improvements&nbsp;in&nbsp;water filtration rates and nitrogen content.



<h2 class="wp-block-heading">Funding climate justice</h2>



Africa’s forests&nbsp;not only benefit the continent but&nbsp;offer&nbsp;a vital&nbsp;climate service to the planet&nbsp;which we need to conserve and harness at all costs given the climate emergency upon us.&nbsp;We need to see the nature services from this continent&nbsp;generate&nbsp;significant finance&nbsp;to&nbsp;drive local development.&nbsp;



Implementing such a&nbsp;transformation&nbsp;requires a climate justice approach.&nbsp;Climate justice&nbsp;recognises that without the promotion of&nbsp;human rights&nbsp;and&nbsp;the protection of nature,&nbsp;sustainable development&nbsp;is not possible.&nbsp;Many young climate activists are leading the campaign for climate justice&nbsp;across Africa.&nbsp;Now&nbsp;we&nbsp;need investors and governments&nbsp;to&nbsp;act&nbsp;with&nbsp;the same levels of commitment and enthusiasm&nbsp;shown by&nbsp;these&nbsp;courageous&nbsp;youth&nbsp;leaders.&nbsp;



Climate justice&nbsp;requires&nbsp;the&nbsp;urgent acceleration of&nbsp;finance at scale.&nbsp;This could be found from&nbsp;public funds, especially from climate funds&nbsp;which only&nbsp;currently&nbsp;account for&nbsp;<a href="https://www.climatepolicyinitiative.org/wp-content/uploads/2022/09/Landscape-of-Climate-Finance-in-Africa.pdf" target="_blank" rel="noreferrer noopener">$1 billion (3%) of climate finance</a>&nbsp;flows to Africa,&nbsp;and multilateral development banks (MDBs)&nbsp;who could use public finance to de-risk nature investments.&nbsp;Additionally,&nbsp;agricultural&nbsp;subsidies&nbsp;in the west and on this continent&nbsp;could be&nbsp;repurposed to fund this transition.&nbsp;



One&nbsp;avenue left relatively untapped&nbsp;is&nbsp;the voluntary carbon market.&nbsp;Two thirds of Africa’s&nbsp;carbon&nbsp;credits come from only&nbsp;five&nbsp;countries.&nbsp;This&nbsp;market holds&nbsp;huge potential to unlock private capital to fund projects that simultaneously protect nature&nbsp;and&nbsp;bring economic benefits to local people and communities.&nbsp;Africa could increase its engagement with the voluntary carbon market to ensure a good price, and greater access to finance.&nbsp;



This potential has been acknowledged by numerous key stakeholders across Africa&nbsp;which has led to&nbsp;the establishment of the Africa Carbon Market Initiative (ACMI),&nbsp;formed by SE for All, UNECA and Global Energy Alliance for People and Planet with the UN Climate Change High Level Champions as a supporting partner.&nbsp;This&nbsp;was&nbsp;<a href="https://climatechampions.unfccc.int/africa-carbon-markets-initiative/" target="_blank" rel="noreferrer noopener">launched&nbsp;this week&nbsp;at COP27</a>&nbsp;as a means of enabling more money to flow to nature-based projects and power&nbsp;Africa’s development, we’resupporting the ACMI.&nbsp;The initiative will be fundamental in the&nbsp;shaping of&nbsp;Africa’s engagement in&nbsp;the voluntary&nbsp;carbon market and&nbsp;in&nbsp;the protection of its precious natural ecosystems&nbsp;going forward.



<h2 class="wp-block-heading" id="h-mobilising-carbon-and-nature-based-payments">Mobilising carbon and nature-based payments  </h2>



The voluntary carbon&nbsp;market,&nbsp;especially&nbsp;the demand for&nbsp;nature-based&nbsp;carbon&nbsp;credits,&nbsp;is growing rapidly, and if Africa doesn’t mobilise&nbsp;soon there&nbsp;is a risk that we fail to shape our engagement with the market to ensure transparency,&nbsp;integrity and&nbsp;benefits&nbsp;which are retained on&nbsp;the continent. &nbsp; &nbsp;



Carbon markets, with clear operating principles, could help power nature positive development.&nbsp;The entry point for buyers must be clearly defined to drive high integrity demand from the outset. And there should be payment for biodiversity – over and above payment for carbon. Certain innovative conservation organisations are already piloting biodiversity payments, proving that valuing nature in this way is possible.&nbsp;



Above all, it is vitally important that&nbsp;there&nbsp;are continual, widespread&nbsp;consultations with&nbsp;governments,&nbsp;buyers,&nbsp;regional carbon&nbsp;market shaping&nbsp;initiatives&nbsp;as well as&nbsp;local communities to&nbsp;shape&nbsp;the way ahead&nbsp;for the voluntary carbon market in Africa&nbsp;and&nbsp;understand where finance can make the greatest impact.&nbsp;The best nature-based projects not&nbsp;only generate high quality carbon credits, but also bring lasting benefits for&nbsp;these&nbsp;local&nbsp;communities, the custodians of biodiversity. This is the context for the formation of the African Carbon Markets Initiative (ACMI), which has&nbsp;the aim of scaling supply and demand for carbon credit projects in Africa.&nbsp;The 2030 technical potential of Africa-sourced carbon credits is estimated at up to 2,370 MtCO2e based on existing, nascent, and innovative methodologies in sectors such as forestry, agriculture, blue carbon, renewable energy, household devices, livestock, engineered removals, decommissioning of fossil fuels and more.&nbsp;



For the sake of&nbsp;all our futures,&nbsp;nature must be valued appropriately, it must be included in the valuation of the economy and factored into GDP calculations. Carbonfinance&nbsp;and other forms of payment (e.g.&nbsp;biodiversity credits)&nbsp;generated from natural climate solutions can simultaneously restore and conserve nature while also providing significant funding to national development efforts across Africa.&nbsp;Now is the&nbsp;time for the world to recognise and reward Africa for its natural capital assets.

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Protecting nature to drive development: how Africa can be a nature-positive superpower

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1244663337-820x547.jpg" alt="" class="wp-image-421297" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1244663337-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1244663337-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1244663337-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1244663337-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1244663337-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1244663337-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Participants walk in front of COP27 logo in the Green Zone on the fourth day of the COP27 UN Climate Change Conference, held by UNFCCC in Sharm El-Sheikh International Convention Center, Egypt on November 10, 2022. COP27, running from November 6 to November 18 in Sharm El Sheikh focuses on implementation of measures already agreed during previous COPs. The Conference in Sharm El Sheikh focuses also on the most vulnerable communities as the climate crisis hardens life conditions of those already most disadvantaged. on the fourth day of the COP27 UN Climate Change Conference, held by UNFCCC in Sharm El-Sheikh International Convention Center, Egypt on November 10, 2022. COP27, running from November 6 to November 18 in Sharm El Sheikh focuses on implementation of measures already agreed during previous COPs. The Conference in Sharm El Sheikh focuses also on the most vulnerable communities as the climate crisis hardens life conditions of those already most disadvantaged. (Photo by Dominika Zarzycka/NurPhoto via Getty Images)</figcaption></figure>



Sharm El–Sheikh, Egypt, 14 November 2022:&nbsp;The hosting of the COP27 conference in Africa signifies a unique opportunity for the continent to assert its needs, challenges and outlooks, and most significantly to drive the African Position on just transition. Historically this conference, focused on climate change and its humanitarian ramifications, has marginalized Africa – whose contribution to humanity’s carbon footprint is minimal but whose people are suffering disproportionately from its effects.



But with this year’s gathering of world leaders occurring in Egypt’s Sharm El Sheikh, it is vital that Africa’s authentic voice is heard – this is the overriding purpose of Afreximbank’s mission at COP27. By inserting and asserting our perspective in the global climate change debate, we want to promote a mainstream African position, as a key stakeholder region.



Africa’s situation, and therefore the position articulated by Afreximbank, diverges from those of many other regional blocs, particularly in the more prosperous Global North. This continent’s long-term sustainable development agenda, which relies on traditional energy sources, is impeded by the ongoing campaign towards zero-carbon emissions, and the short-term livelihoods of millions of Africans are imperiled by a headlong rush towards net-zero.



With this in mind, Afreximbank’s participation in COP27 revolves around three core elements: an accelerated implementation of the African Continental Free Trade Agreement AfCFTA, which can reduce the continent’s reliance on carbon-intensive imports; the fostering of partnerships to promote an energy transition model that is more globally inclusive; and the maintenance of a pan-African position which achieves a balanced, environmentally sustainable economic development strategy. So, in partnership with likeminded organisations, Afreximbank’s participation at COP27 has been marshalled to articulate the following outcomes:



<ul class="wp-block-list"><li>Calling for the full Implementation of the AfCFTA towards the localization of industries to transition towards net zero emissions:</li></ul>



Afreximbank believes that the AfCFTA offers an opportunity for Africa to produce and consume goods within the continent, thereby reducing its carbon footprint. Erasing borders offers an opportunity for Africa to share technology, collaborate on science, and leverage its youthful population to achieve the development the continent warrants. In understanding this, Afreximbank supports the full implementation of the AfCFTA – which will help the continent pool resources to accelerate and speed up its development trajectory. At the COP27 conference, Afreximbank is rallying member states and development partners to accelerate the implementation of the AfCFTA. In so doing, Afreximbank called on these organisations and Governments to fund the AfCFTA Adjustment Fund. Capital from this Fund will be deployed to support both the public and private sectors to address short-term disruptions, while enabling the private sector to retool, reskill, and develop the necessary capabilities to produce value-added goods and services that can be traded competitively within the continent – catalysing the emergence of AfCFTA-led regional value chains.



<ul class="wp-block-list"><li>Fostering partnerships for an energy transition model that is more globally inclusive:</li></ul>



Currently, 600 million Africans have no access to electricity, while another 900 million lack access to clean cooking. However, Africa, a continent endowed with abundant resources, is home to 30 percent of the world’s mineral reserves, eight percent of the world’s natural gas, and 12 percent of the world’s oil reserves. Due to its low levels of development and large green energy sources, Africa emits the least of any region, contributing about 4 percent of total global emissions. Afreximbank believes that Africa must use its vast minerals to tackle the continent’s energy poverty and achieve its development plans under Agenda 2063. Exploring Africa’s natural gas reserves can double the continent’s electricity capacity, while adding less than one percent to global emissions. At Afreximbank, we believe Africa cannot achieve its development plans without access to energy. Hence Africa has the right to develop its resources, including fossil fuels, and we, as a Bank, are prepared to finance the continent’s energy just transition. At the conference, Afreximbank has confirmed its intention and willingness to continue to partner with petroleum producers to promote adaptation, support energy value chains and mitigate the costs of transition. With a well-articulated African position, we believe the continent’s economic development will be well positioned to grow while ensuring the continent’s energy transition progress is compatible with, and complementary to, the Sustainable Development Goals (SDG) as well as the continent’s long-term social and environmental objectives, as set out in African Union’s Agenda 2063: The Africa We Want.



<ul class="wp-block-list"><li>Supporting the common pan-African position around a balanced, environmentally sustainable, and responsible economic development strategy:</li></ul>



If our continent is to achieve sustainable development goals, we must take charge of its trajectory. Africa is blessed with rich mineral resources enough to finance its development, but the continent has failed to benefit from the exploitation of these resources. Afro-centric institutions are key to driving Africa’s economic agenda and building Africa’s resilience against climate change. Afreximbank has committed to supporting the African positioning for the continent’s benefit. At this critical time of global economic uncertainty, it is imperative that Africa coordinates and supports the common African position on economic development amidst global climate change. At the conference, Afreximbank is calling for adaptation financing models prioritising resilience in economies and ecosystems, in place of green financing models for mitigation – as this will generate new nomenclature bonds befitting the African situation. Moreover, Afreximbank has called for compensation for loss and damage and a transition from transactional to systemic finance – both crucial for our collective future.

COP27 In Sharm El Sheikh – Day 4

Afreximbank asserts Africa’s common position at COP27

This week marks the beginning of the 27th Climate Change Convention (CoP27), which is rightfully christened the African CoP as it takes place in the Egyptian City of Sharm El Sheikh, but also because it presents the best opportunity for Africa to take leadership in determining the future of its mitigation and adaptation course, particularly as pertains to financing.



&nbsp;While it has previously been the expectation that the developed countries, who incidentally are the largest contributors of carbon emissions would come around to sufficiently support developing countries in climate finance, this assistance has been slow to come. This has necessitated a shift in perspective to include the incorporation of mitigation and adaptation goals into national, regional, and continental planning and budgetary systems.



Africa remains one of the regions that are worst affected by climate change, even as it contributes the least of global emissions. Today, the changing precipitation patterns are undermining the continents food and water security. Food insecurity increases by 5–20 percentage points with each drought or flood in sub-Saharan&nbsp;Africa, and global warming is expected to melt Africa’s remaining glaciers in the next few decades reducing the availability of water, an essential component of agricultural production.



Ultimately, with agriculture being critical to Africa’s economic transformation, climate change would continue to increase the risk for agriculture sector investors, destabilize local markets and limit economic growth.



Faced with such risks, we must now arrive at the conclusion that Africa’s overreliance on foreign assistance may delay adaptation plans, and that the quicker way forward is to create own financing mechanisms, including the blending of public and private sector finance in de-risking investments in climate action.



For a rapid take-off, African governments and leadership must take charge and create a policy environment that encourages private-sector investments with a climate angle.&nbsp; Recent commitments, including the Africa Common Position at the 2021 UN Food Systems Summit, and more at the AGRF Summit this year, show an eagerness by African governments to position the war against climate change as a key development agenda. However, the commitments can only be validated by a policy direction that clearly brings out the central position of climate finance in the envisioned transformation.



The idea here is to mobilize private finance, which as at now, remains the biggest hope of meeting the continent’s climate goals. As of today, nearly 87% &#8212; or$20bn &#8212; of Africa’s annual climate finance emanates from public actors, with very limited contribution from the private sector. And with annual needs of $280bn to implement the continent’s Nationally Determined Contributions by 2030, it goes without saying that private sector investments are an urgent necessity, which can be quickened by shattering existing investment barriers through supportive policies. &nbsp;



Meanwhile, as governments create an environment that fosters local contribution to climate finance, private sector players must also independently devise ways of contributing to the war against climate change. The truth is, we all, in one way or another, suffer the adverse consequences of the warming climate, and private enterprises are not excluded. The inculcation of a climate agenda within the strategies of private businesses would, therefore, drive meaningful contribution to continental climate action.



We also expect more activity from scientists and researchers, who are now called upon to draft convincing plans and strategies to encourage the uptake of carbon credits and other reward systems for contributions towards climate change mitigation and adaptation. This community plays a key role in provoking rapid and far-reaching action across many sectors, and their dedication participation would lead to activities that mainstream climate action investment, across many different sectors.



Finally, Africa’s farmers, perhaps the biggest victims of climate change, must in their own small way contribute to climate action. Farmer groups must be active in educating their members of their role in mitigation and adaptation and we expect their dedicated contribution through such activities as the creation of communal tree nurseries and supporting of sustainable land management program that includes tree planting initiatives soil &amp; water management of degraded lands across the watershed.



But it is still important to reiterate that the world’s greatest emitters must remain accountable, and that we in Africa and other developing regions expect them to honor their $100bn annual climate finance pledge beyond the lips service.



In conclusion, we must realize that we are now at a change-point, where the business-as-usual approach must be discarded, and new strategy that engages all our participation in climate action is embraced. For Africa’s leaders, this is the right time for transformation, and in the next two weeks of the African CoP we expect to see more local and sustainable climate finance initiatives.



The writer is the former Prime Minister of Ethiopia, and the current Board Chair of the AGRF Partners Group. The AGRF is Africa’s premier convening platform for inclusive agricultural transformation.

H.E.-Hailemariam-1

African countries must create their own climate finance plans

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1439677821-820x551.jpg" alt="" class="wp-image-421087" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1439677821-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1439677821-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1439677821-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1439677821-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1439677821-1536x1033.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1439677821-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>SHARM EL SHEIKH, EGYPT &#8211; NOVEMBER 07: A sign hangs over the main entrance on day two of the UNFCCC COP27 climate conference on November 07, 2022 in Sharm El Sheikh, Egypt. The conference is bringing together political leaders and representatives from 190 countries to discuss climate-related topics including climate change adaptation, climate finance, decarbonisation, agriculture and biodiversity. The conference is running from November 6-18. (Photo by Sean Gallup/Getty Images)</figcaption></figure>



Ahead of her panel discussion at the Friends of South Africa session at COP27 today, Chief Sustainability Officer Nazmeera Moola discusses why and how we must navigate the transition to net zero across high emitting countries and companies



07 November 2022:&nbsp;The transition to net zero will not be linear or simplistic, especially for companies in carbon-intensive emerging market economies like South Africa.&nbsp; A high-emitting company of today will only have a role to play in the net zero economy of tomorrow if it has an ambitious, credible, and implementable plan to transition toward a greener, cleaner future.&nbsp;



As asset managers who are invested in these companies, it is our responsibility to support their transition to net zero, to use our shareholder vote responsibly and to approach decarbonisation from a real-world world-perspective and not from our own portfolio perspective.&nbsp; We do not support ‘portfolio purity’ or divestment.



Remaining invested in the high carbon emitters in our existing portfolio, specifically those in emerging markets, is the right thing to do. It is not about where the company’s or country’s carbon position is today – rather it is about their willingness and ability to move the needle on their carbon emissions. In contrast, divesting from high emitters to cleanse the portfolio does nothing for contributing to real-world decarbonisation.



Corporate South Africa is making progress, with several firms pledging to achieve net-zero emissions by 2050, inclusive of companies from the hard-to-abate industries, like cement manufacturer PPC, paper and pulp producer Sappi, and Sasol.



However, most companies globally, but particularly in emerging markets – do not yet have a clear plan on how they’re going to get to net zero by 2050. Therefore, it is our role as shareholders to encourage, measure and engage the high emitters in our portfolio on their transition, to go on the journey of transition alongside them, with special focus on emerging markets.&nbsp; To ensure that we do this with integrity, we have developed an in-house ‘Transition Plan Assessment Framework’ that scores our heaviest emitters on three key principles: level of ambition, credibility of plan, and implementation of plan.



Transition plan assessment principles



1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level of ambition



Ambition is critical to signal how seriously a company takes climate risk and it’s transition strategy. Measuring ambition can be subjective, and therefore including objective indicators&nbsp; ensure a robust, scientific and&nbsp; credible assessment. This can be achieved by assess the following three indicators:



·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosure of Scope 1, 2 and 3 emissions&nbsp;(all categories) with independent verification and public disclosure via a disclosure platform such as the Carbon Disclosure Project



·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time bound reduction targets&nbsp;across short, medium and long term of Scope 1,2 and 3 emissions



·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Official commitment to achieve net zero by 2050 or sooner, with 1.5C science-based targets and SBTi approval (where possible)



2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credibility of plan



The second principle on which we evaluate plans is on credibility; namely whether the company has a time-bound, clearly financeable, and just transition strategy. Indicators of a credible strategy include:



·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if the plan is based on existing low-carbon technology rather than new, unproven technologies;



·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if the company is not relying on divestment of high-emitting assets or carbon offsets to decarbonise; and



·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if the company has planned to generate significant revenue from low-carbon products and services.



Additionally, financial planning and allocation to transition is critical to consider. The capital expenditure requirements, the impact on revenues and expenditures of this plan, and whether the company can afford it are all indicative of how seriously the company is taking transition and of the potential for transition success. Included in the assessment of transition is the consideration and measurement of social impact to ensure that the transition is sustainable both for people and planet.



3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Implementation and measurement



Engagement and lobbying alignment signify alignment of the company plan with the broader environment in which the company is embedded. Additionally, good governance structures, with clear oversight of transition-related strategy at board level is a good indicator that the transition plan has full company-level buy-in, ensuring transparency and accountability.



Indicators of progress are the final element of measurement. Carbon reduction, of course, is the key metric of success. But carbon is not the only consideration, especially in the early years of transition. Rather, we look for tangible signs of progress, including:



·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;investment in transition-related capacity building;



·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;new partnerships and acquisitions that enable the company to transition; and



·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a growing share of green revenues generated by the company



It’s about progress, not just pledges



Achieving net zero is a global problem. The ideal outcome would be for sectors and countries that can achieve it more easily to decarbonise faster, and for hard-to-abate sectors and developing countries to have slower pathways.&nbsp;



It is essential to South Africa’s economy to execute on the decarbonisation strategy. Local corporates have begun to engage, and in some instances, taken the lead on the opportunity and risk presented by the transition. The approach we are taking enables us to have a clear view on where we are today, and where we are going in light of where we desire to be. Net zero offers both a threat and an opportunity for South Africa and at Ninety One we continue to stand firm in our position of support for both a country and at company level for a just transition to a low-carbon, thriving future.

COP27 Climate Conference: Opening Ceremony And High-Level Summit

COP27: It’s about progress, not pledges, especially in emerging markets

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-820x562.jpg" alt="" class="wp-image-420926" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/AJ7JTKPKIVLLVHHLY5YH6EU57Y-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: View of a COP27 sign on the road leading to the conference area in Egypt&#8217;s Red Sea resort of Sharm el-Sheikh town as the city prepares to host the COP27 summit next month, in Sharm el-Sheikh, Egypt October 20, 2022. REUTERS/Sayed Sheasha/File Photo</figcaption></figure>



Africa needs cheap, affordable and modern energy solutions to realise its development goals.&nbsp;<a href="https://data.worldbank.org/indicator/SP.POP.GROW?end=2021&amp;locations=ZG&amp;start=1961">Projections</a>&nbsp;show that one in four of the world’s people will be sub-Saharan African in 2050. As the region’s population and incomes grow, the pace of industry, commerce and agriculture will accelerate. Yet, 600 million people in Africa do not have access to electricity.



<a href="https://iea.blob.core.windows.net/assets/6fa5a6c0-ca73-4a7f-a243-fb5e83ecfb94/AfricaEnergyOutlook2022.pdf">According to the IEA</a>, demand for modern energy in sub-Saharan Africa is expected to expand by a third in the next decade. Moreover, power generation capacity will need to increase&nbsp;<a href="https://publications.jrc.ec.europa.eu/repository/handle/JRC118432">ten-fold by 2065</a>&nbsp;to meet projected electricity demands.



Africa accounts for only 3% of cumulative global CO2 emissions, but it is&nbsp;<a href="https://www.weforum.org/agenda/2022/05/how-south-africa-s-recent-floods-compel-climate-action/">disproportionately affected</a>&nbsp;by the impacts of climate change. Of the ten countries most vulnerable to climate change, seven are located in Africa.&nbsp;Against this backdrop, the region faces the complex challenge of growing its economies along with the pressing mandate for emissions reduction.



There is no doubt that Africa will need to increase its energy consumption to drive economic growth and achieve development goals. Although emissions are decreasing in other regions, Africa’s CO2 emissions are poised to grow in the coming decades. The&nbsp;<a href="https://iopscience.iop.org/article/10.1088/1748-9326/abc64f/pdf">growth rate in energy-related CO2 emissions</a>&nbsp;in Africa over the last two decades is 123%, considerably greater than the world average of 60%, due largely to the high rate of population growth. Indeed, shifting from a growth powered by cheap fossil fuels to low-emission and climate-resilient economies requires both bolder policies and vast investments.



Current climate financing commitments fall woefully short of the region’s needs. In 2009, at COP15 in Copenhagen, developed countries agreed to mobilise $100 billion per year by 2020 to developing countries. While, in 2020, a total of&nbsp;<a href="https://www.oecd.org/climate-change/finance-usd-100-billion-goal/aggregate-trends-of-climate-finance-provided-and-mobilised-by-developed-countries-in-2013-2020.pdf">$ 83.3 billion in climate finance was mobilised</a>; but of this, only $20 billion was directed to Africa. Climate finance flowing from all sources reached&nbsp;<a href="https://www.climatepolicyinitiative.org/publication/global-landscape-of-climate-finance-2021/">$632 billion in 2019/2020</a>, with Africa receiving just 3% of this. Given the scale of need, at COP26 the Africa Group of Negotiators called for&nbsp;<a href="https://unfccc.int/sites/default/files/resource/3_11_21_%2520Joint_CPR_New%2520Goal.pdf">$</a><a href="https://unfccc.int/sites/default/files/resource/3_11_21_%20Joint_CPR_New%20Goal.pdf">1.3 trillion in climate finance</a>&nbsp;annually starting in 2030.



Other notable outcomes for Africa from COP26, included a reaffirmation of the $100 billion pledge in climate funding for developing countries; a commitment to double finance for adaptation; clearer rules around carbon markets; and heightened attention to losses and damage.



Bridging Africa’s climate financing gap



The&nbsp;<a href="https://unfccc.int/sites/default/files/resource/cma2021_10_add1_adv.pdf">Glasgow Climate Pact</a>&nbsp;noted its ‘regret’ that the developed countries were not able to mobilise the financing pledged at COP15. Indeed, climate financing is again likely to be the most contentious issue at the upcoming COP27 (dubbed Africa’s COP) in Sharm el-Sheikh, Egypt.



The current finance architecture and mechanisms for accessing finance are not meeting Africa’s needs. Financing Africa&#8217;s green energy transition requires a major ramp-up in the scale and quality of investments in infrastructure,&nbsp;climate innovations, climate-smart agriculture, renewable energy and biodiversity.



Concessional loans from bilateral and multilateral donors&nbsp;<a href="https://www.oecd.org/newsroom/statement-from-oecd-secretary-general-mathias-cormann-on-climate-finance-in-2019.htm">account for over two-thirds of climate financing</a>&nbsp;to African countries. Despite the climate pact’s emphasis on ‘grants’ and ‘highly concessional forms of finance,’ however, this source of financing will not match the trillions required to achieve low-carbon development. And a heavy dependence on loans for financing Africa&#8217;s green energy transition is neither an optimal nor sustainable cause of action.



Specifically, the pandemic has had a negative impact on Africa’s sovereign debt situation: resulting in half of the region’s countries in either&nbsp;<a href="https://www.imf.org/external/Pubs/ft/dsa/DSAlist.pdf">debt distress or at high risk of debt distress</a>. On average, the region’s economies collected&nbsp;<a href="https://www.brookings.edu/wp-content/uploads/2021/10/COVID-and-debt.pdf">13.6% less revenue than projected</a>&nbsp;in 2020 and 9.3% less in 2021. Furthermore, eleven countries are experiencing double-digit inflation, worsening an already heavy debt-service burden.&nbsp;<a href="http://country.eiu.com/article.aspx?articleid=982147881&amp;Country=Nigeria&amp;topic=Economy&amp;subtopic=Outlook&amp;subsubtopic=Financial">One in five African countries dedicate 20% or more of foreign-exchange</a>&nbsp;income to external debt servicing and this burden is much larger for a handful of highly-leveraged states. Undoubtedly, private investment and private finance, including innovative financing solutions, will have to play a bigger role.



Innovative financing solutions



Perhaps the most promising outcome of COP26 was the&nbsp;Just Energy Transition Partnership&nbsp;(JETP) between the governments of South Africa and the International Partners Group (Germany, France, the United Kingdom, the United States and the European Union). The JETP aims to accelerate the decarbonisation of South Africa&#8217;s economy, with a focus on the electricity system, by mobilising an initial amount of $8.5 billion over the next three to five years through various mechanisms, including grants, concessional loans, investments and risk-sharing instruments. The success of the JETP could serve as a model for climate financing in Africa, particularly if it has a systemic regional approach.



Negotiating for climate finance is important, but more policy imagination will be needed to integrate climate action into development agendas. The African Continental Free Trade Area (AfCFTA) serves as a framework for the region’s green transition — by promoting green industries and trade-related policies. For example, investment in lithium-ion battery manufacturing on the continent should be a priority. By shifting battery manufacturing downstream to where many of the critical inputs are sourced, such as to the DRC, where 70% of the global cobalt supply is produced, the region can become a critical hub in the global supply chain for electric vehicles.



Additionally, given the region’s debt situation, debt-for-nature swaps could be an effective instrument for diverse climate financing. Debt-for-nature swaps are financial transactions in which a&nbsp;<a href="https://www.imf.org/en/News/Articles/2022/05/03/CF-Belize-swapping-debt-for-nature">portion of a country&#8217;s foreign debt is forgiven</a>&nbsp;in exchange for local investments in environmental conservation measures. In the current economic downturn, this instrument is likely to be more appealing to developed countries than issuing new loans and grants.



Finally, carbon credit mechanisms are an effective tool for both preserving and restoring ecosystems and generating additional revenues for governments. African countries have the potential to meet&nbsp;<a href="https://mo.ibrahim.foundation/sites/default/files/2022-07/2022-forum-report.pdf">30% of the world’s sequestration needs by 2050</a>. And the United Nations Economic Commission of Africa estimates that with optimal pricing, Africa can&nbsp;<a href="https://www.ipsnews.net/2022/08/africa-trade-carbon-credits-fund-renewable-energy-expert/">generate between $15 and $82 billion annually</a>&nbsp;by trading carbon credits with emitters. A lack of finance and capacity, however, has prevented African governments from participating in global carbon markets. Building a regional registry and a market exchange for carbon credits would create transparency and protect against price volatility.



These solutions are far from exhaustive, but they will be integral components of the region’s broader strategy to decouple growth from CO2 emissions, including the exploitation of natural gas as a transition fuel.

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Afreximbank asserts Africa’s common position at COP27

African countries must create their own climate finance plans

COP27: It’s about progress, not pledges, especially in emerging markets

Why financing Africa’s green energy transition should be the focus of COP27

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