A NEW comprehensive study published by the UN Environment Programme (UNEP) underscores the potential of Africa’s private sector to play a crucial role in advancing a green agenda that could yield significant benefits for the continent’s economy, environment, and society. The report, titled the Africa Environment Outlook for Business, was unveiled on Thursday, coinciding with the 19th session of the African Ministerial Conference on the Environment (AMCEN) held in Addis Ababa, where 54 African environment ministers have convened.
The report underscores that Africa’s private sector possesses the capacity to drive an array of positive outcomes, including boosting gross domestic product (GDP), increasing income per capita, creating tens of millions of jobs, and facilitating collaboration among governments, businesses, and local communities.
The study urges businesses to embrace a holistic approach anchored in six core dimensions: profit, people, planet, prosperity, peace, and partnerships. Elizabeth Mrema, UNEP Deputy Executive Director, highlighted the significance of creating an enabling environment for investments that tackle the triple planetary crisis. She emphasized the role of robust regulatory frameworks, research, innovation, education, public-private partnerships, and collaboration in achieving these objectives.
‘This report shows that policymakers can create an enabling environment for investments that address the triple planetary crisis by adopting robust regulatory frameworks, investing in research, innovation, and education, as well as promoting public-private partnerships and fostering collaboration across governments, businesses and local communities,’ she said.
The report showcases a range of success stories in the realm of green ventures and provides insights into the potential for growth across various sectors. Notable points from the report include:
Agriculture and private sector investments in nature:
- Transitioning to sustainable agriculture practices, including organic farming, precision agriculture, and agroforestry, can enhance productivity while minimising negative impacts on ecosystems.
- Embracing digital technologies in agribusiness could offer a market worth up to $1 trillion, contributing to food security for a growing population.
- Combating soil erosion could yield net benefits in nutrients valued at $62.4bn annually.
- Restoring nature could unlock a business value of $10 trillion and generate 395 million jobs by 2030.
The blue economy and ecotourism:
- Sustainable management of aquatic ecosystems is vital to sustain the blue economy, which is projected to generate $576bn and create 127 million jobs by 2063.
- Marine and coastal tourism present significant opportunities for sustainable development, with a potential value-added of over $100 billion by 2030.
Climate-smart opportunities for a net-zero transition:
- Africa’s abundant renewable energy resources, such as solar, wind, hydro, biomass, and geothermal, could contribute to a 6.4 percent increase in GDP from 2021 to 2050.
- Businesses in the energy efficiency sector can provide products and services that contribute to sustainable development.
- Investments in climate resilience to address an annual funding gap of $213.4bn could create positive impacts and foster innovation.
- Africa’s reserves of critical minerals make the continent essential for clean energy technologies.
Lucrative pathways for circularity:
- Promoting sanitation, tackling plastic waste, sustainable packaging, and efficient supply chains can enhance resource utilization.
- Efforts to reduce food waste and promote plant-based proteins can drive growth and sustainability in the agro-food industry.
- Circular economy initiatives, exemplified by programmes like SWITCH Africa Green, demonstrate the viability of sustainable practices.
African Continental Free Trade Area (AfCFTA):
- Opportunities in sectors such as fashion, textiles, and automotive offer potential for sustainable growth and circular practices.
- The need to address the financing gap for environmentally sound technologies is highlighted, with a focus on fostering innovation.
- Sustainable infrastructure projects and investment opportunities contribute to the transition to net-zero emissions.
The African voluntary carbon market:
- Unlocking Africa’s carbon credit capacity is a potential avenue for economic growth and climate action.
- Initiatives like the African Carbon Market Initiative (ACMI) recommend actions to scale the supply and demand for high-integrity carbon credits.
Despite the opportunities highlighted in the report, it also acknowledges unique challenges faced by many African economies, including limited investments, institutional capacity, scalability, and high transaction costs. Policymakers are urged to prioritise reducing upfront costs, promoting energy-efficient solutions, and implementing innovative financing mechanisms.
Rose Mwebaza, UNEP Director and Regional Representative for Africa, emphasised that Africa’s dynamic economic landscape and opportunities for sustainable practices create a pathway for green growth. The report aims to inspire African businesses and entrepreneurs to contribute to sustainable development goals through green initiatives.