The Association of African Development Finance Institutions (AADFI) is calling for actionable plans to incorporate climate-resilient products into African business models to address climate finance needs and derisk sustainable investments in the region. Failure to act may result in Africa losing 5-15% of its projected GDP by 2050 due to the effects of climate change.
The financial institutions conveyed this concern 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.
Attended by bank CEOs from 33 countries across four continents, the event is themed, “DFIs’ Strategic Role towards a Climate Smart Future,” as reported by NewsNow.
During the forum, Mr. Thabo Thamane, the Chairman of AADFI, highlighted the severe consequences that least developed countries in Africa, Asia-Pacific, and Latin America could face as a result of climate change effects. These consequences include threats to human health and safety, food and water security, and sustainable socio-economic development globally.
Mr. Thamane emphasized that urgent actions are needed to combat climate change, as reports predict that failure to do so could lead to a loss of more than 18% of the world economy’s current GDP by 2048. Africa, for instance, is estimated to lose 5-15% of its projected GDP by 2050, with a projected climate adaptation cost of $10 to $30 billion annually by 2030.
The Chairman also pointed out that immediate action is essential to mitigate the effects of climate change, as failure to do so could result in Asia and ASEAN countries losing 26.5% and 37.4% of their GDP by 2048.
Source: Newsnownigeria