World Bank: Climate shocks could push about one million people into poverty in Ghana

A latest country climate and development report for Ghana by the World Bank has issued a stark warning that climate shocks could potentially push at least one million more people into poverty if urgent steps are not taken. According to the report, income for poor households in Ghana could see a reduction of up to 40 per cent by the year 2050 due to the devastating impact of climate change. Pierre La Port, the World Bank Country Director for Ghana, Liberia, and Sierra Leone, joined CNBC Africa to discuss the key findings of the report and shed light on the implications for the region. The report outlines that Ghana is currently losing around $2 billion per year due to climate-related issues. This staggering loss is projected to accumulate to nearly $40 billion in the coming years. However, there is hope as the report also emphasizes that with adequate investment in climate smart projects and initiatives, Ghana could potentially realize a net benefit of over $26 billion between now and 2040. One of the critical recommendations from the report is for Ghana to act swiftly and adopt a development pathway that prioritizes building resilience to climate change. This call to action comes at a challenging time for the country, which is grappling with an economic crisis and limited fiscal flexibility. The report suggests that Ghana has the capability to navigate these dual challenges by concurrently pursuing climate resilience strategies and restoring macroeconomic stability. La Port underscores the essential role of the private sector and development partners in supporting Ghana's efforts to combat climate change. He stresses the need for the government to create an enabling environment through appropriate policies and incentives to attract private sector investments in climate smart initiatives. Furthermore, the report indicates that Ghana can enhance its appeal to private sector investors by offering incentives such as tax breaks for climate-friendly investments. By aligning its tax policies with climate-conscious objectives, Ghana can optimize both private sector funding and public finance towards sustainable climate solutions. La Port highlights the significance of improving Ghana's investment climate to attract more private investments and promote climate resilient practices. Additionally, fostering partnerships with development organizations like the World Bank will be crucial in securing the necessary support for Ghana's climate strategies. Reflecting on the specific challenges faced by Liberia and Sierra Leone, La Port points out the distinct climate vulnerabilities of these countries compared to Ghana. He underscores the critical need for tailored approaches that address each country's unique circumstances and challenges. For instance, Sierra Leone's densely populated urban areas face heightened risks of natural disasters due to inadequate infrastructure. La Port emphasizes the urgency of developing targeted solutions to manage climate risks, particularly for coastal nations in West Africa. The World Bank's assessment of the overall progress in West Africa towards climate resilience reveals a growing recognition of the urgency to address climate change. La Port commends the recent initiatives taken by authorities in the region to confront climate challenges, citing increased political will and financial commitments towards climate adaptation and mitigation efforts. He acknowledges the gradual shift towards proactive climate action in Africa, emphasizing the importance of collaborative endeavors like the West Africa Coastal Management Project. This project, financed by the World Bank, aims to tackle coastal vulnerabilities and demonstrate a collective commitment to safeguarding the region's environmental stability. In conclusion, the World Bank's report serves as a wake-up call for Ghana and other West African nations to prioritize climate resilience as a fundamental pillar of sustainable development. By leveraging the expertise of the private sector, fostering collaboration with development partners, and implementing targeted climate strategies, these countries can mitigate the adverse impacts of climate change and pave the way for a more resilient and prosperous future.