As the world grapples with climate change, Africa finds itself at the center of the crisis—bearing a disproportionate share of the impacts despite contributing only a fraction to global emissions.
Extreme weather events like floods, droughts, and heatwaves are becoming more frequent, placing immense strain on economies already grappling with widespread poverty and underdevelopment.
The continent is now under immense pressure to develop sustainable solutions while battling economic hardship, food insecurity, and underdevelopment.
For African nations, climate policy and sustainable development are not abstract goals—they are matters of survival. As the impacts of climate change worsen, the need for coherent policy frameworks that prioritize both climate resilience and economic growth becomes more urgent.
Yet, the journey toward achieving sustainable development in Africa faces significant financial, social, and technical challenges.
A Continent at Risk
The vulnerability of Africa to climate change is largely due to its reliance on climate-sensitive sectors. Agriculture employs more than 60% of the population in sub-Saharan Africa.
However, increasingly erratic weather patterns are disrupting agricultural productivity, leading to food insecurity across the region. According to the World Bank, climate change could push 130 million Africans into poverty by 2030.
In Kenya, for instance, the prolonged droughts of recent years have decimated crops and livestock, leaving millions without food or income. “We are seeing the future of farming in Africa becoming increasingly precarious,” says Wanjira Mathai, an environmentalist and daughter of Nobel laureate Wangarĩ Maathai. “Smallholder farmers, who produce the majority of Africa’s food, are facing unprecedented challenges due to shifting climate patterns.”
But it’s not just agriculture that is at risk. Africa’s hydropower generation, which provides a significant portion of the continent’s electricity, is vulnerable to changing rainfall patterns.
Dams and rivers across East Africa are experiencing reduced water levels, further straining energy infrastructure. Lake Chad, once one of Africa’s largest freshwater lakes, has shrunk by 90% over the past five decades, affecting millions who depend on it for drinking water, agriculture, and power.
Financing Sustainable Development
To mitigate the worst effects of climate change, African countries need vast financial resources. The African Development Bank (AfDB) estimates that Africa will require US$277 billion annually by 2030 to implement both climate adaptation and mitigation measures.
However, the current flow of climate finance to Africa is far from adequate. In 2023, the continent received just US$30 billion—less than 11% of what is needed, leaving a glaring gap in funding. Most of this funding comes in the form of loans rather than grants, pushing many African countries deeper into debt.
“Many African countries are caught in a debt trap,” explains Dr. Abebe Shimeles, a leading economist at the African Economic Research Consortium. “Countries are being forced to borrow to cope with a crisis they didn’t create, making it even harder for them to invest in development projects or essential services.” Senegal, for example, has received 85% of its climate finance in the form of loans, which has significantly increased its national debt.
The unequal financial burden borne by Africa has led to increasing calls for reform. African leaders are advocating for more equitable climate finance mechanisms.
They argue that the international community, particularly wealthy nations, has a moral obligation to provide grant-based funding rather than loans.
At the COP27 summit in 2022, the Loss and Damage Fund was proposed to help vulnerable nations recover from climate-induced disasters. However, only US$661 million pledges have been made so far, covering just a fraction of the $290 to $580 billion in annual losses that developing countries are expected to face.
Sustainable Development Goals in Jeopardy
Africa’s struggle with climate change also threatens its ability to meet the United Nations Sustainable Development Goals (SDGs). The SDGs, which aim to end poverty, ensure food security, and promote clean energy by 2030, are in danger of being derailed by climate-related challenges.
Food security is particularly at risk. The Food and Agriculture Organization (FAO) reports that over 250 million people in sub-Saharan Africa face severe food shortages due to climate-related events. With temperatures continuing to rise, this number is expected to grow. On top of this, the strain on water resources will only intensify, with 17 African countries projected to experience high water stress by 2040.
Energy poverty remains another critical issue. More than 600 million Africans still live without access to electricity, stifling economic growth and development. Renewable energy offers a solution, yet high capital costs are a major barrier.
The average interest rate for renewable energy projects in Africa stands at 8.2%, almost twice the 4.4% average rate in Europe. “The financial hurdles are significant,” says Fatih Birol, Executive Director of the International Energy Agency. “But Africa has enormous renewable potential. Solar and wind energy could transform the continent, provided the right investments are made.”
Policy Reforms and Homegrown Solutions
To address these challenges, African nations are focusing on developing National Adaptation Plans (NAPs) to outline strategies for building climate resilience. These plans prioritize investments in climate-smart agriculture, sustainable water management, and renewable energy infrastructure.
Countries like Rwanda and Ethiopia are making significant progress in implementing NAPs, but broader financial and technical support from the international community is essential for these initiatives to succeed.
Besides NAPs, homegrown solutions are also gaining traction. In 2020, the African Union launched the African Risk Capacity (ARC), which provides insurance payouts to countries affected by climate disasters.
Since its inception, ARC has delivered more than US$60 million in payouts to countries like Madagascar and Mozambique following severe droughts and cyclones. These insurance mechanisms help mitigate the immediate impact of climate disasters and provide a safety net for vulnerable communities.
Solar energy, in particular, is seen as a game changer. There is huge potential in countries across the continent—in Kenya, for example, solar plants are producing just under two-thirds (60%) more energy than similar installations in Europe. With 60% of the world’s best solar resources, Africa has the opportunity to leapfrog traditional energy systems and adopt cleaner, decentralized energy solutions.
Kenya’s solar energy success is not only a showcase of Africa’s comparative advantage in renewable energy production but a reminder of the continent’s huge sustainable growth and development potential. Local, national and international efforts have the opportunity now to realize its promise.
