Development Finance Institutions under the auspices of the Association of African Development Finance Institutions have called for actionable plans to incorporate climate-resilient products into African business models as part of solutions to address climate finance needs and derisk sustainable investments in the region.
This was as it revealed that Africa may lose 5 per cent to 15 per cent of its projected GDP by 2050 if immediate actions are not taken to mitigate the effects of climate change in the region.
The financial institutions made this known at the ongoing Joint International CEO Forum of the Association of African Development Finance Institutions and the Association of Development Financing Institutions in Asia and the Pacific hosted by the Bank of Industry in Abuja.
The event attended by bank CEOs from 33 countries across four continents was themed, “DFIs’ Strategic Role towards a Climate Smart Future.”
The AADFI Chairman, Mr Thabo Thamane, while delivering his address, underscored the severe consequences that least developed countries, particularly those in Africa, Asia-Pacific, and Latin America, could face.
Painting a gloomy picture of the issue at hand, the AADFI Chairman noted that the adverse effects of climate change threaten human health and safety, food and water security, and sustainable socio-economic development globally and ideas.
He said, “It is no longer news that the world is facing the negative impact of climate change. Human health and safety, food and water security, and sustainable socio-economic development are threatened globally.
“Reports predict that if strategic actions are not taken to combat climate change, the world economy will lose more than 18% of its current GDP by 2048, and the least developed countries, particularly those in Africa, Asia-Pacific, and Latin America, will suffer the worst consequences.
“Africa, for instance, is estimated to lose 5 per cent to 15 per cent of its projected GDP by 2050, with a projected climate adaptation cost of $10 to $30 billion annually by 2030. At the same time, the Asia and ASEAN countries are projected to lose 26.5 per cent and 37.4 per cent of their GDP by 2048 if immediate action is not taken to mitigate the effects of climate change.