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According to UNECA, the frequency of natural disasters directly increases public debt levels, such that a unit increase in natural disasters could lead to a 0.25 percentage point increase in the ratio of net public debt to GDP.
On Monday, the United Nations Economic Commission for Africa (UNECA) stated that natural disasters affected a total of 407.5 million people in Africa between 2000 and 2022, as climate-induced catastrophic events caused severe humanitarian crises across the continent.
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According to the UNECA statement, amid the growing impact of climate-induced incidents across the African continent, such events have forced some 4.2 million people to become homeless, while killing 53,610 people and injuring 52,205 others.
UNECA noted that the findings of its Economic Report on Africa 2023 (ERA-2023), which will be officially launched next week and is titled "Enhancing Africa's Resilience to Global Economic Shocks," show that climate shocks are often highly correlated with the cyclical component of gross domestic product (GDP) growth rather than the long-term trend in Africa. This suggests that some of the observed volatility in growth emanates from climate-induced shocks.
"A temperature increase beyond a threshold of 0.7-degree centigrade results in reduced real GDP growth. At a 1.8-degree centigrade change in temperature, which is expected to prevail by 2030 if current trends persist, we could expect a 2-percentage point decline in real GDP growth," the UNECA said, citing the findings of its Economic Report on Africa.
Corruption undermines adaptation efforts when funds for building small-scale infrastructure that protects against �� natural disasters are wasted or misdirected. Read 7 ways to address corruption risks in #climatechange: https://t.co/RSU56djEeO pic.twitter.com/kVa2LFh2FH
— IFC Africa (@IFCAfrica) December 12, 2023
Furthermore, the UNECA said that the frequency of natural disasters increases public debt levels directly, in which a unit increase in natural disasters could lead to a 0.25 percentage point increase in the ratio of net public debt to GDP.
"More significantly, climate change in Africa tends to derail poverty reduction and, in some cases, destroy the livelihoods of millions of people that mainly rely on agriculture and small businesses. Droughts, floods, frosts, and other natural events that lead to crop failure affect the welfare of households that live in rural areas and small towns," it said.
It also stated that a one unit increase in natural disaster frequency would increase the percentage of households living in extreme poverty by 4.4 percentage.
The UNECA said the ERA-2023 carries important lessons regarding how African countries must incorporate climate change in the design and implementation of their long-term growth strategies.
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