Africa's Climate Vulnerability: A Call to Action for Adaptation and Resilience

The African continent, home to only 7% of global carbon emissions since the 19th century, bears the brunt of climate change's adverse effects. Rising temperatures, droughts, and floods have led to food insecurity and poverty, particularly affecting micro and small businesses and farmers. The International Rescue Committee estimates that seven of the ten countries at the highest risk are in Africa, with Somalia, Chad, South Sudan, the Democratic Republic of Congo, and Nigeria among the most vulnerable. The Sustainable Development Goals (SDGs) are threatened by climate change, making it imperative for organizations like Advans to develop climate strategies to support clients in adapting and building resilience.

Key Takeaways:

• The African region faces significant climate-related risks, with seven of the ten countries at the highest risk located in Africa, according to the International Rescue Committee.
• Rising temperatures, droughts, and floods have led to food insecurity and poverty, particularly affecting micro and small businesses and farmers.
• Advans, a leading microfinance group in Africa, has developed a climate strategy to support its MSME and farmer clients in adapting and building resilience.
• The strategy involves financial and non-financial solutions to help clients recover from climate shocks and prepare for the future.
• Ghana has faced over 27 major floods in the past 30 years, with 15 affecting Accra, the country's capital, and seven out of ten Ghanaians lack access to insurance.
• In Tunisia, water scarcity is the most serious climate-related physical risk for farmers, while in Cote d'Ivoire, climate change is heavily impacting the cocoa sector.
• Advans estimates that 22% of its clients in the three pilot markets for the climate strategy are vulnerable or highly vulnerable to climate-related risks.

Statistics:

• Africa has contributed only 7% of global carbon emissions since the 19th century.
• Seven out of ten Ghanaians lack access to insurance.
• 42% of the population in Ghana remains excluded from basic financial services.
• 22% of Advans' clients in the three pilot markets for the climate strategy are vulnerable or highly vulnerable to climate-related risks.
• Over 700 staff members across the Advans Group participated in the Climate Fresk workshop.
• Advans has piloted an innovative index and yield insurance in Cote d'Ivoire to protect cocoa farmers in case of extreme climate shocks, covering over 2,300 farmers in 2024-25.
• In Ghana, Advans is piloting a new insurance and loan package to help clients restart their businesses following an extreme event.

Sources:

• International Rescue Committee
• Advans Group
• Horus Development Finance
• 60 Decibels study (2024) with 280 farmers
• Various media reports