UNECA’s Gatete on how climate change impacts Africa's economic development

Claver Gatete, the UN Deputy Secretary General and Executive Secretary of the Economic Commission for Africa, recently discussed critical issues affecting Africa's economic development in an interview with CNBC Africa. Gatete highlighted the significant impact of climate change on African economies, emphasizing that it is costing GDP growth by up to 15% in some countries. This impact poses a threat to achieving key developmental goals such as the African Continental Free Trade Area, the vision of Africa 2063, and the Sustainable Development Goals (SDGs) by 2030. Gatete stressed the urgent need for action to mitigate the effects of climate change and address the challenges of high debt levels and limited fiscal space within the continent. Here are the key points from Gatete's interview: 1. Impact of Climate Change on Economic Development: Gatete underscored the detrimental effects of climate change on African economies, noting that it is already hindering GDP growth by as much as 15% in some nations. He emphasized the urgent need for interventions to address this challenge and prevent further economic losses. Gatete highlighted the importance of fulfilling commitments to climate financing, establishing a fund for loss and damage, and ensuring fair market pricing for carbon credits to generate much-needed revenue for African countries. 2. Carbon Markets and Fair Pricing: Gatete addressed the disparities in carbon pricing between African countries and other regions, citing the need for a fair market that reflects the true value of carbon credits. He advocated for the creation of frameworks and guidelines to support African nations in participating in carbon trading markets. Gatete applauded initiatives like the Rwanda carbon trading market, emphasizing the importance of international trading to enable African countries to derive fair value from their carbon assets. 3. High Debt Levels and Borrowing Costs: Gatete acknowledged the challenges posed by high debt levels in Africa, which were exacerbated by the COVID-19 pandemic and global economic conditions. He highlighted the complexities of debt restructuring and the need for a comprehensive framework to address the issue. Gatete called for reforms in the international financial architecture to provide African countries with access to affordable financing and support their development goals. He proposed leveraging resources such as special drawing rights and underutilized guarantees to inject capital into development banks and stimulate economic growth. In response to these challenges, Gatete stressed the importance of reforming the international financial system to better support African countries' development efforts. He called for innovative solutions to address the intersecting issues of climate change, high debt burdens, and limited fiscal space. Gatete's insights shed light on the complexities facing African economies and the imperative for proactive measures to secure sustainable development on the continent.