
Commentaries | Oct 16,2024
Mar 9 , 2024
By Madalo Minofu
Climate-related risks present a formidable challenge to Ethiopia's sustainable growth and development. However, the private sector has significant opportunities to build and fund low-carbon and climate-resilient projects.
A recent World Bank Group report finds that climate change could shrink Ethiopia's gross domestic product (GDP) by between one percent and 1.5pc of GDP annually and rise to five percent by the 2040s, potentially pushing millions of Ethiopians into poverty. Millions in the greater Horn of Africa, including Ethiopia, face acute hunger as the region suffers one of the worst droughts in decades. The Ethiopia Country Climate & Development Report (CCDR) outlines how Ethiopia can attract private funds into its green economy to support projects in the agriculture, infrastructure, and water management sectors. These are the sectors with the highest potential to help Ethiopia develop greater climate resilience.
Ethiopia's government recognises climate change's challenges and has an ambitious Climate Resilient Green Economy (CRGE), a strategy designed to support resilient and sustainable growth. The strategy calls for investing in climate-smart agriculture practices to boost production and food security, expanding electricity generation from renewable sources, and modernising transport and industrial activities to be more energy efficient.
The price tag is sizable. The report finds that Ethiopia needs more than 27 billion dollars by 2050 and that the government cannot fund these goals alone. The CCDR offers a blueprint for how the private sector, supported by a robust regulatory framework, can help Ethiopia meet its climate ambitions.
For example, private sector financing could be used to modernise Ethiopia’s infrastructure — including roads and bridges — to better withstand climate shocks.
Potential investors also have opportunities to contribute to the country’s green energy sources. This could mean investing in renewable energy-independent power producers in the agriculture sector to expand access to irrigation and affordable post-harvest storage facilities, to develop climate-resilient livestock and seed, and for targeted insurance products.
The International Finance Corporation (IFC) is already working with partners to strengthen farmer resilience and boost food security. Through its work with Soufflet Malt Ethiopia and Heineken Ethiopia, a local supply chain was established. These companies are now sourcing from more than 70,000 barley farmers, which has helped drive an increase in their production and productivity.
To mobilise this financing, the CCDR recommends that the government leverage public-private partnerships to bring private-sector know-how and investment.
Ramping up green investment in Ethiopia is urgent: the country is particularly vulnerable to climate change, with extreme climate shocks, including drought and floods, adversely impacting agriculture and endangering critical infrastructure in the transport and energy sectors. IFC and the broader World Bank Group are ready to continue supporting Ethiopia in its efforts to attract investment and support its green development.
Ethiopia may not be the only country facing climate change. But given its location and population size, it has the potential to be a regional leader in leveraging creative private-sector engagements for a more sustainable future.
PUBLISHED ON
Mar 09,2024 [ VOL
24 , NO
1245]
Commentaries | Oct 16,2024
Radar |
Fortune News | Jan 07,2023
Radar | Mar 02,2024
Radar | Aug 18,2024
Viewpoints | Sep 04,2021
Editorial | Aug 26,2023
Radar | Jul 13,2019
Editorial | Jul 01,2023
Viewpoints | Dec 31,2022
My Opinion | 128117 Views | Aug 14,2021
My Opinion | 124341 Views | Aug 21,2021
My Opinion | 122447 Views | Sep 10,2021
My Opinion | 120297 Views | Aug 07,2021
Dec 22 , 2024 . By TIZITA SHEWAFERAW
Charged with transforming colossal state-owned enterprises into modern and competitiv...
Aug 18 , 2024 . By AKSAH ITALO
Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...
Jul 28 , 2024 . By TIZITA SHEWAFERAW
Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...
Jul 13 , 2024 . By AKSAH ITALO
Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...
Apr 26 , 2025
Benjamin Franklin famously quipped that “nothing is certain but death and taxes....
Apr 20 , 2025
Mufariat Kamil, the minister of Labour & Skills, recently told Parliament that he...
Apr 13 , 2025
The federal government will soon require one year of national service from university...
Apr 6 , 2025
Last week, the International Finance Corporation (IFC), part of the World Bank Group...
Apr 28 , 2025 . By NAHOM AYELE
Key Takeaways: The Ministry of Justice's directive plans to enforce pro bono wor...
Apr 26 , 2025
Neway Magersa (Left), president of Sinqee Bank, shared a lighter moment at the Skylight Hotel on Africa Avenue and chuckled with Oromia Regi...
Apr 27 , 2025 . By BEZAWIT HULUAGER
A controversial decision to clear a large tract of land in Addis Abeba's Wereda 1, around Flamingo and th...
Apr 27 , 2025 . By AKSAH ITALO
Key Takeaways A federal court dismissed Zewdinesh Getahun's ownership claim as time-barred, requir...