By John Ikani
Kenya stands among the ten African nations that collectively receive half of the funding allocated to combat climate change on the continent.
Joining Kenya in this group are Egypt, Morocco, Nigeria, Ethiopia, South Africa, Mozambique, Cote d’Ivoire, Tunisia, and Ghana. These estimates were presented at the ongoing Africa Climate Summit in Nairobi.
Despite this allocation, the Global Centre on Adaptation, a Netherlands-based climate advocacy group, argues that the current funding remains inadequate and should increase tenfold.
According to the organization, the ten most climate-vulnerable countries, which include Guinea-Bissau, Sierra Leone, South Sudan, Nigeria, Democratic Republic of Congo, Ethiopia, Eritrea, Central African Republic, Chad, and Senegal, only receive 18 percent of Africa’s adaptation finance.
“The impacts of climate change are being felt around the world, but nowhere more acutely than in Africa,” emphasized GCA CEO Prof. Patrick Verkooijen, referring to a new study released by the center in Nairobi. The GCA contends that adaptation finance for Africa must surge tenfold, surpassing $100 billion annually by 2035, in order to bolster resilience against the mounting climate change impacts.
Adaptation finance primarily supports actions aimed at helping communities reduce risks and potential harm from climate-related hazards such as droughts. This includes funding for initiatives like the development of drought-resistant crops or livestock programs.
While Africa’s Nationally Determined Contributions (NDCs) currently estimate the continent requires $52.7 billion yearly for adaptation (equivalent to 2.5% of its GDP), the GCA’s research reveals that this is a substantial underestimate, as only half of the countries have calculated their adaptation costs.
Without increased investment, Africa could miss out on as much as $6 trillion in economic benefits by 2035. Every $1 invested in adaptation is shown to generate a return ranging from $2 to $10.
“The actions we take now to increase adaptation finance flows to Africa are critical to the continent’s capacity to respond to climate impacts and transform climate adaptation into a growth agenda for the continent,” stated the GCA.
These underestimated financial needs for Africa were formulated at a time when climate impacts were not projected to occur as rapidly or intensely as they currently are.
A separate study by Oxfam revealed that wealthy nations contributed less than five percent of the $53.3 billion needed by East Africa to address the climate crisis. Countries like Kenya, Ethiopia, Somalia, and South Sudan suffered $7.4 billion in livestock losses due to climate change, yet they received only $2.4 billion in climate-related development finance in 2021, far below the $53.3 billion required annually to meet their 2030 climate goals.
Challenges Faced in Accessing Climate Funds
Kenya’s Ministry of Environment has indicated a need for $40 billion in new investment over the next decade (from 2020 to 2030) to implement crucial climate mitigation and adaptation measures.
Experts have pointed to the high cost of capital in Africa as a significant obstacle. Private investors in Africa impose substantial premiums due to perceived risks, resulting in the continent paying five times more to borrow from financial markets than advanced economies.
The Nairobi-based African Wildlife Foundation highlighted that inadequate financing models are rooted in global economic models that fail to accurately quantify and cost the benefits and services provided by biodiversity.
Kwame Kumah, Senior Vice President for Global Leadership at the African Wildlife Foundation, emphasized that the deficiency in climate and biodiversity financing has led to the unequal exploitation of Africa’s natural resources by the rest of the world, disadvantaging the communities living within these ecosystems.
“While there are no comprehensive studies on the true economic value of Africa’s natural assets, in 2028, Africa’s measured natural capital was estimated to be $6.2 trillion, with mineral and fossil fuel resources estimated at $290 billion and $1.05 trillion, respectively,” Kumah noted.
