“Establishment of a national mechanism dedicated to financing the just and sustainable transition, supported by the central bank or the Ministry of Finance, to facilitate more effective use of available financing”, reads the policy recommendations of the 2024 Economic Report on Africa , launched by UNECa, with the title ‘Investing in a Just and Sustainable Transition in Africa’.
Throughout the document, UNECA analysts defend the importance of ensuring a fair energy transition that makes good use of the enormous natural resources of African countries, particularly those that will be fundamental to guaranteeing a greener economy and less dependent on fossil fuels such as cobalt. , nickel or copper.
“African countries have great opportunities to transition to inclusive economies; seizing these opportunities and transitioning to sustainability require changes in interdependent social systems at many levels, from the functioning of global supply chains to the behavior and values of individual citizens”, the report argues.
For UNECA, “these unprecedented transitions represent complex and uncertain processes, which will depend on how well African policymakers understand the dynamics and deal with the main elements and drivers of the transition in the coming decades”, starting with the type of infrastructure that each country will need.
The 2024 Economic Report on Africa presents the conditions for investments in a fair and sustainable transition that meets the aspirations of African countries, defined in the 2030 Agenda and the 2063 Agenda, to build a prosperous Africa that meets the Sustainable Development Goals, arguing that The transition from fossil fuels to renewable energy is an unprecedented opportunity for the region.
African countries “can leverage the global boom in green minerals and their large renewable energy resources, tropical forests and maritime ecosystems to export carbon credits, generating financing for sustainable investments”, explains UNECA.
The institution warns, however, that “boosting this type of investment will depend on the capacity of African countries to mobilize the necessary financing from internal and external sources, including climate financing.”
Among the main recommendations are the strengthening of national policies and strategies, the increase in the role of the private sector, the balance between growth and strategic public investment, on the one hand, and the management of budgetary sustainability, on the other.
Mobilizing more financing through partnerships between various actors, taking advantage of the presence of the African Union in the G20 to give voice to these initiatives is another recommendation of the United Nations Economic Commission for Africa.
Leave a Reply