The Aswan Forum affirms the importance of the private sector and multilateral finance to support Africa – Economy – Business

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Mahmoud Mohi El-Din — Egypt’s climate champion delivers a recorded message on the last day of the Aswan Forum for Sustainable Peace and Development

They also urged the international community to deliver on its commitment to provide developing countries with $100 billion a year in financing to adapt and address the climate crisis.

The third edition of the forum was held under the theme “Africa in an Age of Cascading Risks and Climate Vulnerability: Pathways to a Peaceful, Resilient and Sustainable Continent” and organized by the Ministry of Foreign Affairs and the Cairo International Center for Conflict Resolution, Peacekeeping and Peacebuilding in partnership with the Government of Sweden and the African Development Bank (AfDB).

In a recorded message, Mahmoud Mohi El-Din – Egyptian climate champion, special envoy for financing the 2030 Agenda for Sustainable Development and executive director of the International Monetary Fund (IMF) – said there was no no place to talk about global political cooperation when there are regions suffering from food crises, vulnerability to climate change and conflicts like those in Africa.

He also noted that the war in Ukraine, as well as the COVID-19 pandemic, have compounded the problems the continent is beset with, particularly that its countries have to spend around 35% of their GDP to invest in water, food and infrastructure amid ongoing challenges.

Africa’s financing needs in this regard have increased from $2.2 trillion to $2.4 trillion during the current difficult period, he said.

“COP27 is a platform through which Egypt will adopt a local and regional approach for the development of the continent,” he said, calling for leveraging the private sector space and multilateral funding provided. by the IFIs to mobilize funds in this regard.

Mohi El-Din also touched on the continent’s long-lasting debt problem, which is compounded by the impacts of the war in Ukraine and the COVID-19 pandemic.

“If creditors cannot introduce a solution to this problem, all efforts to invest in water, energy and food security on the continent will be at risk. We must work to channel the financing needed for the continent’s development from the private sector as well as the IFIs to achieve Africa’s SDG Agenda and the ‘Agenda 2063 for the Africa we want’,” Mohi explained. El-Din.

Kevin Urama, Acting Chief Economist and Vice President for Economic Governance and Knowledge Management at the AfDB, noted that financial commitments for climate action must move from pledges and promises to implementation on the ground. to avoid the severe impacts of climate change on Africa, which is responsible for only 3% of global carbon emissions.

He pointed out that the pattern of global climate action flows shows that the countries most vulnerable to climate change in Africa are not receiving any of these flows, while flows to other countries on the continent leave much to be desired.

In this regard, Urama highlighted the role the African Development Fund is playing in mobilizing concessional finance for Africa to mitigate and adapt to the climate crisis.

He also asserted the need to increase the finances of the fund, adding that he had managed to allocate £45billion in funding to support the continent just in time for its 50th anniversary.

For her part, Elizabeth Spehar, Under-Secretary-General for Peacebuilding Support at the UN, said that $50 billion to $70 billion is allocated annually for peacebuilding finance.

She affirmed that innovative solutions are crucial to address peace and security challenges on the continent by working through public-private partnerships (PPPs) and with the private sector to secure additional financing to address such a challenge. problem.

She added that there is also a need to tap into non-traditional donors in this regard as well as mobilizing local finance.

Over the past two days, the Aswan Forum has been discussing the pathways the continent can take to achieve its sustainable development and gain access to the necessary finance in the context of the ongoing multifaceted crisis which is also affecting its peace and security. .

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