The Executive Director of the African Forum and Network on Debt and Development (AFRODAD), Jason Rosario, has called on African countries to reject climate finance offered as loans, warning that such arrangements would worsen the continent’s debt burden and impede development.
Rosario emphasized the dangers of market-based, private sector-led financial instruments saying “When we take on debt as part of our climate finance, we further constrain our resource port.”
Given this, he advocated for climate finance discussions to focus on grants, repatriation, and reparations for historical environmental damages caused by external exploiters, particularly in the oil and gas sectors.
Speaking at the 4th Conference on Debt and Development (AfCoDD IV) in Maputo, he urged African negotiators to steer the conversation away from debt-based investments in fossil fuels and towards models that support Africa’s development and industrialization.
He stressed the importance of securing the right type of finance, which includes adopting systems and governance frameworks that support Africa’s ongoing development and reduce dependency on primary commodity exports.
Rosario’s stance challenges the prevailing global approach to climate finance at a time when African countries are striving to balance climate commitments with economic growth. Despite the growth in climate finance over the last decade, it remains insufficient to meet the Paris Agreement goals. While global climate finance surpassed US$1 trillion in 2022, estimates suggest that $6.2 trillion to $7.3 trillion will be needed annually by 2030 and 2050, respectively, to achieve Net Zero.
During a recent African Group of Negotiators (AGNES) meeting in Mombasa, Kenya, climate finance practitioners called for developed countries to commit at least $5.9 trillion by 2030. This push aims to reshape the financial architecture supporting climate adaptation, mitigation, and a just transition.
The AGNES consultation concluded that Africa must proactively shape the future of climate finance, aligning it with the continent’s real needs and demands. Experts emphasized the urgency of addressing Africa’s growing climate-related needs, particularly through securing public finance from developed countries.
AfCoDD IV, organized by AFRODAD, runs for three days under the theme “Africa’s Debt Crisis: Pan-African Feminist Perspectives and Alternatives.”
This year’s conference focuses on the intersection of Africa’s rising debt burden and persistent gender inequalities, reflecting on the progress of the Maputo Protocol.
