Nairobi — The adverse effects of climate change are costing African countries up to fifteen per cent Gross Domestic Product (GDP) annually, President William Ruto said on Tuesday as he pitched for the recalibration the global financial system.
Ruto said the average losses in GDP among African countries stood between five and fifteen percent underscoring the need for financial reforms.
"The tragedy of climate change is that it's relentlessly eating away at this progress and, going by evidence based on scientific projections, its appetite to consume our GDP will grow in years to come," he stated.
Statistics by the World Bank and African Development Bank have projected a decline in Africa's GDP from 4.1 per cent in 2022 to 3.8 per cent and 4.8 per cent in 2021, partly attributing the drop to adverse climate.
In Kenya, the African Development Bank reported a 2 per cent decline in GDP from 7.5 per cent in 2021 to 5.5 per cent in 2022 attributable to the drought, increased commodity prices, and tight global financial conditions.
President Ruto noted while delivering his remarks at the Africa Climate Summit in Nairobi on Tuesday that African countries risked sinking into debt over high interest rates from concessional funding.
"They say figures don't lie. Nine countries are in debt distress in our continent, 13 countries are classified as high risk and another 17 countries are classified as moderate risk because we pay 5 times more than other countries, "He said.
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Ruto said there is a need to get Africa away from paying 5 times more money for its debt.
"We are not asking to be favored or treated differently. We want a fair financial system that treats everybody equally," he stated.
Financing drought interventions
President Ruto said Kenya is currently diverting resources intended for development projects and economic growth into dealing with effects of climate change.
"Climate change is destroying our economy! We don't want to die of debt. In the northern part of Kenya, we lost 2.5 million heads of Livestock due to drought," Ruto revealed.
The President pointed out that his administration had to scale up the school feeding program rolled out in all public schools across the country in order to benefit 4 million school going children a spike from 1.5 million children.
Ruto termed effects of climate change as a big obstacle for developing countries urging African leaders to reach consensus on the matter of carbon tax.
"As leaders we need to have a conversation about the carbon tax which is important in evaluating ways of raising additional resources for Africa to finance its development," Ruto said.
The President emphasized that African countries are ready and committed to developing policy actions to fight climate change despite suffering most even though the continent is among the least polluting globally.
