Africa’s economic outlook faced fresh headwinds this week, as the African Development Bank warned that rising temperatures could erode up to $20 billion from vulnerable economies. Inflation accelerated across much of the continent after last year’s easing, and economists urged Nigeria and South Africa to diversify their trade as global protectionism intensifies.
Meanwhile, the naira continued to defy a stronger US dollar, while Afreximbank’s digital trade platform completed another milestone cross-border transaction, highlighting the continent’s push toward deeper regional integration.
Rising temperatures could wipe $20bn off African economies, AfDB warns
A potential “super” El Niño weather event, driven by warming Pacific Ocean temperatures, could wipe between $10 billion and $20 billion from the economies of Africa’s hardest-hit countries while triggering mass displacement, higher food prices and increased government borrowing, the African Development Bank (AfDB) has warned.
Anthony Nyong, the AfDB’s director for climate change and green growth, told Reuters the climate phenomenon could reduce Gross Domestic Product by between one percent and two percent in the most affected countries, threatening economic growth and placing additional pressure on already fragile public finances.
