AFDB: Climate Change to Contribute to the 1.6% Inflation Rise in Southern Africa

Climate Change is second after Covid-19 regarding the extent of negative impacts affecting the Southern African economy. The aspect will highly contribute to the 1.6% projected inflation despite the setback of countries like South Africa, already battling the ongoing oil and power crisis. 

According to The African Economic Outlook 2023 by AFDB, countries like Botswana, Zambia, and South Africa will need to restructure their efforts in curbing the climate crisis. 

Kevin Chika Urama, AfDB’s vice president of economic governance and knowledge management, attests that the impacts of climate change, rising energy commodity costs, and supply chain disruptions have increased the burden. He insists that the respective countries should pay more attention to the climatic factors, which will go a long way in saving the slow economic growth of the Southern regions. 

According to AFDB’s chief economist, George Kararach, the economic state will rise to 2.7% in 2024, which should encourage relevant entities. However, he warns that the dip in 2023 might be dangerous if necessary steps to invest in clean energy are not undertaken. 

George’s and Urama’s and Karakach’s remarks are essential to adhere to, with the entity’s head, Akinwumi Adesina, always pushing for the same. 

Therefore, the 13 Southern African nations should take action fast, considering the slow growth after the emergence of Covid-19. Investing in a sustainable and clean environment will go a long way in saving the economy. Nations like South Africa can primarily benefit from the use of renewable energy, helping them solve the double tragedy of climate change and the oil plus power crisis.

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