Leveling the Financial Playing Field for Africa
There is no path to a green, just, and prosperous shared future that does not have Africa at its core. That is why it is in the world's interest to support the continent, not through charity, but by backing African-led solutions, particularly by removing financial inequities that impede much-needed investment.
NEW YORK – Africa bears virtually no responsibility for the greenhouse-gas emissions driving the climate crisis. It is not responsible for the conflicts or supply-chain disruptions that have driven global inflation. Nor did it trigger the spread of COVID-19, let alone cause the pandemic’s economic fallout. And yet the long-term effects of this trio of crises are being felt perhaps more acutely in Africa than anywhere else.
The International Monetary Fund has estimated that Africa’s additional financing needs resulting from the pandemic will amount to $285 billion over the four years ending in 2025. But with inflation, exchange-rate pressure, and unmanageable debt levels eroding the already-limited room governments have to make the needed short- and longer-term investments, Africa’s real needs are likely much greater.
Despite the remarkable resilience that the continent has shown, anemic economic growth is compounding the challenge. Sub-Saharan Africa endured recession in 2020 for the first time in 25 years. And, according to the African Development Bank (AfDB), the region’s annual growth rate fell from 4.5% in 2021 to 3.5% in 2022. It is expected to amount to just 3.8% this year.
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