IMF: In an IMF blog posted yesterday, the Fund noted that climate change poses ‘grave threats to countries across Africa – but especially fragile and conflict-affected states’. The Fund noted that it is vital that Africa’s leaders come up with solutions to support these vulnerable countries. It added that from Central Africa Republic to Somalia and Sudan, fragile states suffer more from floods, droughts, storms and other climate-related shocks than other countries when they have contributed the least to climate change.
Moreover, each year, three times more people are affected by natural disasters in these fragile states than in other countries, displacing more than twice the share of the population compared with other countries. In addition, the report added that conflict undermines the capacity of fragile states to manage climate risks.
Climate shocks also worsen underlying fragilities, such as conflict and hunger, further exacerbating the effect they have on the economy and people’s wellbeing. For policymakers, potential critical interventions include policies to facilitate immediate response to climate shocks, such as building buffers through more domestic revenues, lower public debt and deficits and higher international reserves.
The comments come ahead of next week’s inaugural African Climate Action Summit in Kenya, which will be attended by many of the continent’s leaders (the conference will run from 4-6 September).
Ahead of this summit, the Eleventh Conference on Climate Change and Development in Africa – Green Growth and Climate Finance for Africa and the World also kicks off in Kenya (Nairobi), tomorrow (1-2 September), bringing together African stakeholder groups to discuss key climate change and development challenges and to identify opportunities and solutions.
Interestingly, these conferences are taking place as climate scientists warned countries in the Horn of Africa that the upcoming short rains season (October to December) will likely see above average rainfall, driven by the El Nino and Indian Ocean Dipole phenomena, which could cause flooding and landslides. The higher rainfall, along with expected higher temperatures, are suitable conditions for desert locus swarms to thrive, posing a threat to the region’s agriculture sector.
Gabon: The military has taken over Gabon’s government and named the head of the republican guard as the new transitional leader. General Nguema will serve as the country’s transitional president. We reported in yesterday’s Sub-Saharan Africa Daily that soldiers appeared on television in the morning to announce that they have taken over the country and dissolved the Gabon’s institutions.
Soldiers have put President Bongo under house arrest and have shut the country’s borders. They have also annulled the election results after the electoral body declared Bongo the winner of the disputed elections. Although the situation remains fluid, Nigeria’s This Dayreported that crowds celebrated the military’s takeover of government. Meanwhile, regional leaders have expressed the concern about the situation in Gabon.
Nigeria’s President Tinubu talked to the Canadian Prime Minister Trudeau about the situation in Gabon and Niger, while the presidential spokesperson stated that Tinubu is deeply concerned about the situation in Gabon and is watching developments closely. Tinubu stated that he is working closely and communicating with other African heads of state on the situation. Angolan President Lourenco is planning to travel to the Republic of Congo today to discuss the coup in Gabon.
Nigeria: The Manufacturing Association of Nigeria (MAN) yesterday released its latest CEO’s Confidence Index (MCCI) for Q2 23, which shows that the sector has been crippled by the impact of the weaker naira, with a nearly 30% decrease in sales for consumer goods and cement. The MCCI stood at 52.7 points, a decline from the 54.1 points recorded in Q1, with the report noting that manufacturers are ‘groaning in pain due to these issues that are frustrating their contribution to the economy’.
The report stated that production and distribution costs have increased by 17.3% since the previous quarter, while capacity utilisation levels nosedived by a further 5.6% after a fall of 5% in Q1. Production volumes also fell by 6.1% from the prior quarter whereas manufacturing investment dipped by a further 5.6% following a 3% decline in Q1. Manufacturing employment also fell nearly 6% q/q.
The poor performance was attributed to the slow recovery from the cash crunch, high cost of energy, high transportation cost and the abrupt removal of the fuel subsidy that took place towards the end of the quarter. The report added that the ‘economic turmoil’ disrupted the manufacturing value chain, escalated cost of manufacturing operations and resulted in a reduction in manufacturing patronage.
