Policy Dialogue: Pathways to a Resilient Africa : Innovative Financing Solutions to Tackle Climate and Debt Challenges
Governments across Africa are confronting increasingly complex macro-fiscal challenges as they pursue their development goals in the context of a rapidly intensifying climate crisis. At the centre of this agenda sit Ministries of Finance. They shape economic strategy, allocate public resources, and mobilise financing at the scale required for climate-resilient development. Yet, climate change and debt are increasingly intertwined challenges.
Extreme weather events such as floods, strain public finances by creating urgent spending needs for disaster relief and reconstruction, while simultaneously reducing economic output and tax revenues. This dynamic compound debt vulnerabilities, as governments often resort to borrowing to cover immediate costs, further tightening fiscal space and heightening the risks to long-term sustainability.
The purpose of this CABRI Policy Dialogue is to:
- Deepen understanding of the debt climate nexus in Africa and its implications for how governments can manage public finances effectively and sustainably.
- Explore the financing instruments and policy levers available to ministries of Finance to advance climate action within tight budgetary constraints and high debt levels.
- Identify the core functions and institutional capabilities that ministries of Finance must strengthen to lead and coordinate climate action across government.
- Provide a platform for government officials to exchange experiences, lessons learned, and emerging good practices in integrating climate considerations into public financial management.