Addis Ababa, August 17, 2023 – Africa’s private sector is strengthening its green agenda, increasing GDP, increasing per capita income, creating tens of millions of jobs and supporting governments, businesses and regions, according to a comprehensive study released today by the United Nations Environment Program. According to UNEP, it can promote social cooperation.
of Outlook for African environmental business Launched with 54 African environment ministers gathering in Addis Ababa for 19 daysth African Ministerial Conference on the Environment (AMCEN) session. We encourage businesses to adopt a holistic approach rooted in profit, people, planet, prosperity, peace and partnership.
Elizabeth Mulema, Deputy Executive Director of UNEP, said: “This report aims to encourage policymakers to invest in addressing the three planetary crisis by adopting strong regulatory frameworks and investing in research, innovation and education. “It shows that we can create an enabling environment.” As well as promoting public-private partnerships. and foster collaboration between governments, businesses and local communities. ”
This report presents data on the various success stories of today's green ventures and the growth potential of the sector as a whole.
Agriculture and private sector investments in nature:
- Transition to sustainable agriculture. It currently accounts for approximately 17 percent of sub-Saharan Africa's GDP. Employing organic farming, precision farming and agroforestry are some of the approaches that can increase productivity while minimizing negative impacts on ecosystems and avoiding food insecurity and biodiversity loss.
- Digital technologies in agribusiness offer a US$1 trillion market to feed the continent’s growing population, estimated to reach 2.5 billion by 2050.
- Combating soil erosion could yield net benefits worth US$62.4 billion annually in nutrients such as nitrogen, phosphorus and potassium.
- Restoring nature could generate $10 trillion in business value and create 395 million jobs by 2030.
Blue economy and ecotourism:
- Projected to generate US$576 billion and 127 million jobs by 2063 through research, innovation and management of aquatic ecosystems, the resilience of the blue economy is growing in the face of overfishing, pollution and climate change. must be maintained.
- Marine and coastal tourism presents a huge opportunity for sustainable development in Africa, and is expected to add more than $100 billion in value by 2030.
Climate-smart opportunities for net-zero transition:
- Africa, with its abundant solar, wind, hydro, biomass and geothermal resources, has the potential to be a pioneer in renewable energy solutions, contributing to a 6.4% increase in GDP from 2021 to 2050 there is. Marine renewable energy is a vast untapped resource for Africa and has the potential to generate between 100 and 400 percent of the world's current energy needs.
- Companies in the energy efficiency sector can offer products and services such as lighting systems, smart buildings, and efficient industrial processes.
- The annual funding gap in climate finance is $213.4 billion, giving innovative investors the chance to make an impact by building Africa's climate resilience.
- Rich in reserves of critical minerals such as copper, graphite, lithium, molybdenum, nickel, zinc, bauxite, cobalt, manganese, and platinum, and handled responsibly, Africa has a strong Cell technology has become essential for wind turbines.
- “Cool Roof Paint” reflects up to 95 percent of the sun’s heat and air conditioning needs. Investment in clean-cooking energy sources could support $900 million (resulting in today's poor health and deforestation), and Africa's LED lighting market could nearly double by 2028 This could reach US$5.49 billion.
Beneficial paths to achieve circularity:
- Opportunities to promote hygiene, tackle plastic waste, infrastructure recycling, sustainable packaging, e-waste collection and refurbishment.
- Efficient supply chains and reduced food waste can help the agri-food industry increase resource utilization while meeting growing food demand.
- Plant-based proteins and food safety systems can further promote growth and sustainable practices.
- The European Union-funded SWITCH Africa Green initiative and SwitchMed program will transform the economy to a circular economy benefiting more than 3,000 MSMEs and eight countries in sub-Saharan Africa in agriculture, integrated waste management, manufacturing and tourism. has demonstrated the feasibility of
African Continental Free Trade Area (AfCFTA):
- Sub-Saharan Africa's fast-growing fashion and textile sector is worth approximately $31 billion and offers opportunities such as sustainable sourcing, recycling, ethical manufacturing, rental and sharing models, and consumer education doing.
- Africa's automotive market is dominated by used cars, with avenues for growth for companies in vehicle recycling and remanufacturing, battery recycling, shared mobility solutions, repair and maintenance services, circular supply chain management, and training and skills development. is open.
- The lack of funding for environmentally friendly technologies (EST) needs to be addressed. In 2020, only $6.07 billion entered the continent for EST, while global technology exports reached $1.17 trillion.
- A pipeline of 360 ongoing sustainable infrastructure projects worth $100 billion in sectors such as energy, information and communication technology (ICT), logistics, mining and construction (as of 2022) and $257 billion in the same sectors Includes significant additional interim projects. The continent's diverse investment opportunities in the transition to net zero emissions.
Africa's voluntary carbon market:
- Despite its immense potential, Africa faces challenges such as project fragmentation, lack of large-scale developers, regulatory uncertainty, reliability concerns for certain credits, and fair value distribution. As a result, only a fraction of the carbon credit capacity is utilized, which is concentrated in just five countries.
- Africa's untapped potential is estimated at approximately 2,400 tonnes of CO2 equivalent (MtCO2e) per year. By 2030, it has the potential to achieve an additional 400 MtCO2e per year, worth approximately US$7 billion per year.
- Initiatives such as the African Carbon Market Initiative (ACMI) and the Task Force on Scaling Voluntary Carbon Markets (TSVCM) recommend regional and global actions to scale up the supply and demand for reliable carbon credits.
The report points to challenges specific to many African economies, including limited investment, institutional capacity, scalability, high transaction costs, effective transportation, and access and affordability of electricity. Reducing upfront costs, promoting energy-efficient solutions, and innovative financing mechanisms all need to be prioritized by policymakers.
“Africa not only faces incredible challenges of climate change, nature loss and pollution, but also a uniquely dynamic economic landscape, a young demographic, and the challenges of decarbonisation, digital transformation and sustainability. We have an opportunity to leverage the environmental, social and governance (ESG) framework for gender equality,” said Rose Mwebaza, UNEP Director and Regional Representative for Africa. “With this new report, we want to inspire African entrepreneurs and businesses, especially bold pioneers, to commit to green growth and contribute to the Sustainable Development Goals.”
Notes to editors
About the United Nations Environment Program (UNEP)
UNEP is the world's leading voice on the environment. Demonstrate leadership in environmental stewardship by inspiring, informing and enabling nations and peoples to improve the quality of life without compromising the quality of life of future generations. Encourage partnerships.
About the African Ministerial Conference on the Environment (AMCEN)
The African Ministers' Conference on the Environment (AMCEN) was established in December 1985 following the African Ministers' Conference on the Environment held in Cairo, Egypt. Its mission is to champion environmental protection in Africa. To ensure that basic human needs are met in an adequate and sustainable manner. Ensure that social and economic development is realized at all levels. and ensuring that agricultural activities and practices meet local food security needs.
For more information, please contact us below.
Mr. Tom Ogola, UNEP Africa Public Relations, Communication and Outreach Unit;
United Nations Environment Program News and Media Unit