Advancing climate positive growth for Africa

With the risks associated with climate change escalating, African economies are increasingly vulnerable. CNBC Africa recently interviewed Edwin Macharia, Managing Partner at Axum, regarding the much-needed advisory interventions that could tip the scale for the continent. Macharia highlighted the challenges brought on by climate change in Africa, emphasizing that the continent suffers the consequences despite playing a minimal role in causing the issue. However, he also pointed out Africa's potential to lead in the climate change space, particularly in promoting climate positive growth. Macharia outlined three key points that position Africa as a key player in the global move towards sustainability. Firstly, Africa boasts a high availability of renewable energy, with many countries already utilizing green energy for a significant portion of their electricity needs. This abundance of renewable energy sources presents a lucrative opportunity for industries looking to reduce their carbon footprint. Macharia pointed out the untapped potential in geothermal, solar, hydro, and wind energy sources across the continent, highlighting Kenya as an example with over 10,000 gigawatts of geothermal potential. Secondly, Africa's vast and diverse land offers significant potential for carbon sequestration through agricultural activities. The continent's varied agroecological conditions make it ideal for carbon removal projects such as direct air capture and long-term carbon storage. Lastly, Africa's large and youthful population provides a valuable labor force for industries looking to diversify their production locations. This demographic advantage positions Africa as a prime location for manufacturing, data centers, and other industries driving the global economy. Axum's focus on socioeconomic development in Africa aligns with these themes, emphasizing investments in education, healthcare, agriculture, natural resources, and enabling sectors such as banking and finance. The firm combines strategic analytics with implementation capabilities, leveraging deep local insights and extensive networks across the continent. Macharia emphasized the importance of understanding Africa's context and building partnerships with key stakeholders to drive sustainable growth. Overall, Africa's potential for climate positive growth presents a unique opportunity for industrial revolution on the continent.