The private sector needs to play a more significant role in the success of fighting against climate change in Africa. This is amid challenges faced by the continent’s third-world nations, especially climate financing. Its involvement will boost sustainable development, helping respective governments focus on other economy sectors.
Private sectors can cover Africa’s climate finance gap in various ways. Firstly, they cover the innovation and investment capacity, offering reliable solutions to various climate challenges.
Also, the private sector will help expand Africa’s market regarding renewable resources. Experts from the UN, AFDB, and AU call upon private entities to invest in Africa’s untapped solar, and wind energy.
According to Joan Okanda, Pan African advisor, Africa has 39% of the world’s renewable resources, including 60% solar energy. In his speech during COP27, he encouraged private investors to join in and tap these resources, promising gains for them and the African people.
2023’s UNEP report states that the private sector will help mobilize $234 billion Africa’s annual expenditure. This totals to 6.9% of the continent’s GDP.
Therefore, private sectors’ involvement shouldn’t be underrated. It is a big step in Africa’s push for net-zero emissions by 2050, and adhering to global climate change and mitigation action.
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