Nigeria and other African countries might incur losses of between $7 billion and $15 billion annually as devastation from climate change worsens across the continent, the African Development Bank (AfDB) said on Wednesday.
Akinwunmi Adesina, the newly re-elected AfDB head, disclosed at the inauguration of the Global Centre for Adaptation that the biggest hurdle for Africa lay in the efficacy of its response to the environmental crisis, noting its sweeping effects on economies and livelihood.
Africa has been at the mercy of climate change hazards lately, with the president of the Abidjan-based lender citing the $2 billion cumulative loss and 800 deaths that followed the eruption of tropical cyclone Idai and Kenneth in Malawi, Mozambique and Zimbabwe.
“And just four years ago, El Niño devastated East and Southern Africa with severe droughts. It is estimated that from this year, Africa will lose $7bn to $15bn per year due to climate change.”
Adesina said his administration had the ambition of facilitating greater green growth investment and climate finance, having grown funding for the initiative from 9% of its total portfolio in 2016 to 36% as of last year.
AfDB, Africa’s biggest multilateral lender, aspires to build its climate change asset to 40% of total portfolio before 2021 ends.
It said it had its eyes set on expanding climate financing to $25 billion by 2025 while executing the Africa Disaster Risk Insurance Financing Mechanism, aimed at insuring African economies against losses from hazardous climate events.
“As a bank, we are committed to helping Africa build back from the COVID-19 crisis, better, stronger and with greater health and climate resilience.
“Africa has been short-changed by climate change. Now, Africa should not be short-changed by climate finance,” Adesina added.
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