Ghana’s Minister of State at the Ministry of Finance, Mohammed Amin Adam, has stressed the importance of maintaining political stability in Africa to ensure policy consistency, particularly in the context of recent political unrest on the continent that has hindered efforts to address climate change.
Speaking at the 2023 Africa Climate Summit in Nairobi, which focused on the theme of “Creating a supportive policy environment to attract green Foreign Direct Investment,” Mr. Anim underscored the critical role of policy consistency in attracting investment financing in Africa.
Mr. Anim highlighted that it is now crucial for Africa to protect its regional stability and cooperation against factors that could undermine them while capitalizing on its abundant opportunities for the benefit of its citizens. He pointed out that conflicts and political instability in one country can negatively impact neighboring nations, regardless of their strong structural reforms and policies. Such instability can significantly deter foreign investment in the region.
He emphasized the need for collaboration among governments, corporations, and stakeholders to address the root causes of conflict, promote stability, security, and prosperity, and encourage foreign investment in Africa.
The 2023 Africa Climate Summit, held on the theme “Driving Green Growth and Climate Finance Solutions for Africa and the World,” serves as a crucial platform for mobilizing action ahead of the UN Climate Change Conference COP28 in November. The event addresses Africa’s growing vulnerability to climate change and its associated economic costs.
Regarding scaling high-impact climate finance for Africa, reducing the cost of capital through blended finance, and creating a conducive policy environment for attracting international green investments, Minister Anim noted the promising role of instruments such as green bonds in mobilizing substantial financial resources for climate projects. He emphasized the need for enhanced awareness and capacity-building in African nations, as some lack the expertise to effectively structure and issue such instruments. Standardized frameworks and certification processes were also highlighted as essential to boost investor confidence and facilitate cross-border investment.
In a separate panel discussion on “From commitment to action, creating fiscal space for climate action, Agenda 2063, and the SDGs in Africa,” the Minister emphasized the importance of working together to achieve prosperity despite the challenges posed by climate change. He discussed challenges faced by the V20, including capital access, underrepresentation in global governance, and international trade mitigations.
Mr. Anim called for a comprehensive global funding mechanism to address climate prosperity, suggesting that multilateral development banks operating in Africa should increase their resources dedicated to climate-related activities to support regional institutions effectively. He also advocated for a departure from austerity measures within the global system, particularly in debt financing, while considering the impact of climate change.
