The Future of Climate Finance, East Africa's Rapid Growth
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How Financial Institutions Can Help Mitigate Climate Risks
Top executives from banks and other financial institutions gathered at Capital Club East Africa in Nairobi last week to discuss the way forward for climate finance, at an exclusive?event hosted by?The Kenyan Wall Street ?in collaboration with?CIB Group?and?4G Capital?on the sidelines of the AfDB Annual Meetings in Nairobi.
"But in the same vein as pursuing the opportunities of business empowerment and transition to a clean economy, we also have the opportunity to avoid the unsustainable high tax and high spending social models of the industrialized world," Hennessey-Barrett said, "African economies need fair and transparent and predictable taxation systems that see businesses, individuals and governments working and benefiting together."?
While the effects of climate change affect the entire globe, certain places are at a greater risk of dissipation and devastation. Africa has for a long time battled with unusual spells of drought and destructive volumes of rainfall attributable to climate change. This is despite contributing a tiny percentage of carbon emissions.?
"We as the African continent, our emission is only 5% of the entire globe. But unfortunately, the biggest cost from drought and floods caused by climate change impacts more poor people in Africa. One of the biggest challenges for financial institutions seeking is capital," said the chairman of CIB Group, Hisham Ezz Al-Arab.?
Read the full story here .
“Having met capital allocators, fund managers, and banks, I can categorically say that we absolutely do not have a funding problem, what we have is an origination and structuring problem, and it is a serious gap.” -Nairobi Securities Exchange (NSE) CEO Frank Mwiti
East Africa’s Rapid Growth
East Africa is poised to bounce back as the fastest growing region on the continent, according to a recent report by the African Development Bank (AfDB).
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West Africa is projected to grow from 3.6 percent in 2023 to 4.2 percent in 2024, and 4.4 percent in 2025. The AfDB predicts North Africa’s growth will decline to 3.6 percent in 2024 from 4.1 percent in 2023, while Southern Africa’s growth will improve from 1.6 percent in 2023 to 2.2 percent in 2024.
Despite the positive outlook, there are some major concerns around economic growth. “East Africa has the highest inflation at 26.5 percent in 2023, with Sudan leading the way at 245.3 percent,” the AfDB said in its African Economic Outlook 2024.
40 countries on the continent will post higher growth in 2024, with 17 of them expected to grow by more than 5 percent in 2024. This growth is expected to continue into 2025, and expand to at least 7 more economies growing by more than 5 percent. The continent’s remarkable growth means that it will retain its place as the second fastest growing region after Asia.
Read the full report here .
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Key insights on East Africa's booming climate finance sector.
Explore how climate finance is fueling East Africa's growth!