Rethinking Green Economy as A Path Towards Economic and Sustainable Development in Africa
Author: Lateef Madoti
Introduction
The challenges and impacts of climate change in our time cannot be over emphasized. It is a challenge that affects every country in all the continents and Africa is not an exception. Population growth, increase in production and consumption of goods across the globe led to the depletion of natural resources and causing severe damage to the environment.[1] Effects of such damages include global warming, flooding, increased environmental pollution, outbreak of multiple diseases, heat waves, etc. Various countries in the world realized the threats to the environment and began working hard to minimize the harmful effects on the environment.[2] The realization, concern and conscious actions towards environment led to the emergence of sustainable development which emphasizes the need to promote sustainability by advancing the form of development that emphasizes minimal damage to the environment and the society with the wellbeing of future generations in mind.[3] The quest to sustainable development and emergence of green growth economy has continued to dominate the central issue of economic development policy and the need to find a long-lasting solution to environmental issues emanating from the need to grow and develop the economies.[4] Most countries of the world have witnessed a severe economic downturn, growing environmental hazard, high rate of unemployment and increasing rate of health related problems, despite the huge resource endowments of these countries.[5] Green economy became the focus of policymakers in nations like United Arab Emirate, Japan, China and Korea and have become the world leaders in green growth export through the creation of industries using solar, wind and bio-fuels. While developing nations like Nigeria, Ghana, Haiti and South Africa have topped the chart of environmental pollution and economic hardship.[6] It is therefore important to assess the potentials of the green economy in bringing about economic and sustainable development in Africa.
Brief Elucidation on the Concept of Green Economy
United Nations Environmental Programme (UNEP) defined green economy as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.[7] In a green economy, growth in income and employment is driven by private and public investments that enhance energy and resource efficiency, reduce carbon emissions and pollution and prevent the loss of biodiversity and ecosystem services.[8] These investments need to be catalyzed and supported by targeted public expenditure, policy reforms and regulation changes. This development path would enhance, maintain and where necessary, rebuild natural capital as a critical economic asset and source of public benefits, especially for poor people whose livelihoods depend strongly on nature.[9]
The Essence of Green Economy in Africa
Although Africa contributes least to global climate change, it is suffering disproportionately from its adverse effects. Already vulnerable to the current climatic environment, African livelihoods and economies need to adapt to climate change.[10] Furthermore, the need to avoid dangerous levels of global warming requires global action. While recognizing the need to differentiate these responsibilities, development pathways, which achieve Africa’s development objectives in an increasingly carbon constrained world, need to be identified.[11] Given its vast natural resource wealth, biodiversity and human capital, Africa could play a huge role in addressing some of the world’s challenges. The continent has 60 percent of the world’s arable land; 20 percent of its forest reserves; 20 percent of the global land mass; 40 percent of the world’s biodiversity and more than half of the world’s clean energy potential.[12] A new paradigm is needed to ensure that countries maximize the benefits that can be generated from such resources in order to enhance livelihoods, minimize vulnerabilities, eradicate poverty by creating new opportunities for sustainable growth and development. A green economy could be a viable approach in pursuing these critical objectives to achieve economic and sustainable development in Africa.[13]
Economic Activities That Promotes Green Economy
For each effect of climate change, there is a money making opportunity, which is why necessary green transition would be beneficial. Only innovative and forward-thinking countries can exploit these huge business potentials. The impacts of climate change on our environment and society are of a great pressing global risk that involves taking and solving these risks by presenting them as major business opportunities. Some of these opportunities include:
The Use of Renewable Energy in Africa: Africa is amply endowed with environment-friendly renewable energy sources but the renewable energy capacities are grossly under-utilized, particularly from biomass to wind energy and solar energy. As seen in quite a number of successful countries in promoting renewable energy such as Denmark, Germany and Japan, strong and long-term commitment from the government is crucial in implementing any kind of policies that will lead to renewable energy development.[14] The use of renewable energy which is one of the climate change mitigation strategies is vital for the sustainable development and economic growth in Africa.[15] Renewable energy is free to mankind, it is God’s gift to man. The wind (i.e wind energy), the energy of the sun (solar energy) and many other natural resources which are abundant with vast potentials in Africa should be utilized by governments and investors in Africa to achieve economic and sustainable development.[16]
Waste Management And Recycling: Green entrepreneurial opportunities abound in waste management and recycling in Africa today. The reduction and recycling of solid waste can help address global warming and climate change as they are potent strategies for reducing greenhouse gas emissions. The waste management business is one with a plethora of opportunities in its industry. Thousands of businesses operate within several niches in its space, and they all go on to serve a varying number of clients seeking different solutions to their waste management problems.[17]
Implications of Effective Adoption and Implementation of Green Economy in Africa
African countries are on a journey of industrial, economic and environmental transformation and green economy initiatives provide the platform for Africans to scale its transition to a resource-efficient and sustainable future. African Development Bank (AfDB) reported in 2013 that this transformation process recorded a sustained growth but is bedevilled by a weak foundation with many economic, environmental and social challenges.[18] The green economy provides an opportunity to achieve growth targets and development objectives in a more efficient, resilient and sustainable manner.[19] A green economy tied to a transformative agenda could yield positive social impacts especially eradicating poverty. For instance, Kenya’s shift in green investment is predicted to result in lifting more than 3.1 million citizens out of poverty by 2030.[20] The following are some of the implications of effective adoption and implementation of green economy in Africa.
Provision of Job Opportunities: with 600 million increase of people in the urban region of Sub-Saharan Africa, green sector investment will have a positive impact on the employment generation in the region. Organic agriculture with its labour intensiveness, more than other resource-intensive alternatives, can lead to exponential job creation.[21] There are ambitious green initiatives across African countries. In Tunisia for instance, It was projected that the implementation of a planned green initiative would result in 80,000 additional jobs by 2025.[22] This is an 80% boost on already existing 100,000 jobs. A 2016 report of the United Nations Economic Commission for Africa further revealed that South Africa Green Economy Accord sought to create 300,000 new green jobs by 2020.[23] The aforementioned green programmes suggest that investment in green economy initiatives yield positive outcomes in labor-intensive sectors such as renewable energy, agriculture, etc.
Enhancement of the Agriculture Sector: Agriculture is a vibrant and dominant economic sector in most African countries and green investments present a huge opportunity for positive and transformational agricultural yields and revenue. Alliance for a Green Revolution in Africa in 2013 reported that the agricultural sector accounted for 32 per cent of Africa’s Gross Domestic Product and supported 65 per cent of her labour force.[24] Focusing on green investment in this sector could result in the highest social impact and long-term economic results. In Senegal for instance, increased green investment resulted in higher agricultural production while green agricultural investments in Uganda yielded an increase in export opportunities in high value-added activities in organic produce.[25]
Reduction in Rate of Poverty: Eradication of poverty is a critical challenge in Africa and most of her populations rely on the natural resources for livelihood sustenance.[26] In 2014, World Bank reported that 48.5% of the Sub-Saharan population live on less than $1.25 per day while 69.9% live on less than $2 per day.[27] The poor population of African depend heavily on natural resources. By implication, green economy interventions would have greater positive impacts on them. United Nations Economic Commission for Africa in 2016 reported the social benefits of a green economy in Kenya to include a 2% GDP increase in green investment that reduced more poverty than a similar increase in business-as-usual investments scenarios.[28]
Reduction in Environmental Pollution: Environmentally, green economy will result in high positive environmental impacts such as lower carbon dioxide emission, increased biological diversity, ecosystem restoration and other positive environmental externalities. While African countries are not major emitters of greenhouse gases, they are at the receiving ends of climate change and other environmental risks. The green economy has shown substantial reductions in greenhouse gases compared to conventional investment scenarios. In Senegal, according to UNECA, emissions would be 9% lower than in normal case while in Ethiopia, the government targeted limiting emission to 159 million tons per year.[29]
Enhancement of the Forest Sector: The forest sector is one of the green transition areas where expectations on positive environmental benefits are high. Investment in forest sector would reverse the spate of environmental degradation with consequent negative impacts. This would also restore the ecosystem functions through air purification and reduction of greenhouse gases especially carbon dioxide. A vibrant sector could enhance watershed protection, reduce erosion, water stress and provide shelter, food and jobs, etc. South Africa saved billions of tons of water by investing in natural resource management especially land restoration.[30]
Maximization of Natural Resources: The natural resource value is increased with investments in the green economy. Communities dependent on natural resources and the ecosystem can tap into biotrade opportunities. Namibia’s involvement in biotrade especially Marula oil, Kalahari melon seed oil, Ximenia oil and Manketti oil ―in its transition to green economy with associated poverty reduction, economic, social and environmental benefits resulted in 50% increase in over 10 years with a 7% increase to its GDP.[31] With the high potential of biotrade in Africa, as another mechanism for green economy transition, governments of various countries in the continent can introduce investment initiatives that will transform their countries’ economies.[32]
The downside of the transition includes high initial investment costs, low capacity (skills and technology) for implementation, the projected insignificant rise in real GDP in the short term, and a general increase in carbon emissions as Africa develops. Some stakeholders who lose out in the transition may need to be compensated.[33] In essence, employment in certain sectors may also suffer from a green transition. While overall employment is set to increase, certain sectors such as coal mining will inevitably suffer a loss of jobs. Governments will need to support such segments of the population during the transition.[34]
Obstacles to the Full Adoption of Green Economy in Africa
Recognizing the potentials of the green economy in Africa, the governments and all relevant stakeholders need to identify and remove obstacles to effective implementation of a green economy in Africa. Some of these obstacles include the inadequacy of data, lack of awareness, poor coordination among green economy actors as well as human and institutional capacity gaps.
The human and Institutional capacity gap: There is a general ‘inadequacy’ of skills in most sectors of the African economy. This is reflected in major gaps in human and institutional capacity in putting to practice the green economy concept. This seems more pronounced in ministries with less involvement in the implementation of sustainable and environmental issues. Where there are obvious crucial actors, one may observe little or no capacity and technical expertise in the green economy. In Africa, there is generally no strong political will among stakeholders to enforce the translation of policies into actions following green economy procedures. Feeble government institutions and limitations in the budget could hamper the implementation of environmental and green economy policies.[35]
Lack of Awareness: Information dissemination and awareness creation on the potentials of the green economy especially as it relates to adoption will eliminate effects of negative perception that may characterize such new concept in Africa. Lack of knowledge on the opportunities of green economy as well as a dearth of skills in the enterprise could pose several challenges to not only policy formulation but also cross-sectoral adoption of the concept. In Africa, awareness of green economy is generally weak. For instance, most citizens are generally unaware of how their actions could impact the local and global environment.[36]
Inadequacy of Data: Data in some development issues are generally inadequate in most Sub-Saharan African countries. Data that are essential for assessing green economy policies are inadequate. Environmental statistics, in particular, are deficient in most African countries. This poses a great challenge to the measurement of impacts of a green economy on the environment. Designing policy frameworks for green economy initiatives in African countries may lack merits because decisions were not based on actual reality in the field. This will discourage effective partnership, prevent the successful and efficient implementation of national programmes for the resource-efficient economy.[37]
Poor Coordination Among Green Economy Actors: If sustainable development and resource-efficient green economy must be achieved, various political institutions and miniseries must agree to a consensus that inter-ministerial cooperation is highly crucial. In Nigeria for instance, the Ministry of Environment champions implementation of Green Economy, it should nurture strong collaboration with other ministries and departments, especially where this involves growth and economic development. Every stakeholder should encourage integrated coordination as well as pooling of resource, efforts and strategies towards viable green economic activities. Achieving this may need organizational innovation that will establish and strengthen institutions for efficient implementation of green economy initiatives.[38]
Conclusion and Recommendations
Over the years, analytical works and reports on green economy by various multilateral and regional agencies and various international research institutions have demonstrated that a green economy can be a means, perhaps one of the most important drivers, to achieve economic and sustainable development in Africa. The increasing interest to move towards inclusive green growth and to build a green economy presents an unprecedented opportunity to mobilize governments and other stakeholders to assess and reframe their policies and build new sustainable pathways for growth, contributing to green investments, job creation, poverty eradication, resource efficiency and to the overarching goal of economic and sustainable development. Public awareness creation will improve understanding by projecting clear objectives of green economy policy. Developing a knowledge-based green economy will fast-track not only appreciation but also the full adoption of green economy initiatives. Also, the above-mentioned and other obstacles should be removed in order to maximize the potentials of green economy in Africa.
[1] B. Anabaraonye and others, ‘Green Entrepreneurial Opportunities in Climate Change Adaptation and Mitigation for Sustainable Development in Nigeria’ Journal of Environmental Pollution and Management (2019) 2(1) 1
[2] Ibid
[3] Ibid
[4] I.J. Oyebanji and others, ‘Green Growth and Environmental Sustainability in Nigeria’ International Journal of Energy Economics and Policy (2017) 7(4) 216
[5] Ibid
[6] Ibid
[7] Rio+20 United Nations Conference on Sustainable Development, A Green Economy in the Context of Sustainable Development and Poverty Eradication: What are the Implications for Africa? (United Nations Economic Commission for Africa 2012) 1
[8] Ibid
[9] Ibid
[10] Africa@Rio+20, ‘Promoting Inclusive Green Growth and building a Green Economy as a means to achieve sustainable development: Perspectives on Opportunities and Challenges faced by Africa, Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States’ (2012)
[11] Ibid
[12] Ibid
[13] Ibid
[14] I.J. Oyebanji, (n 4) 3
[15] Ibid
[16] Ibid
[17] Ibid
[18] African Development Bank, African development report 2012: Towards Green Growth in Africa (2013)
[19] Ibid
[20] V.E. Chukwu, ‘Potentials, drivers and barriers to green economy transition: Implications for Africa’ Advanced Journal of Plant Biology (2020) 1(1) 14
[21] FAO, ‘Growing Greener Cities in Africa. First Status Report on Urban and Periurban Horticulture in Africa (Food and Agriculture Organization, Rome 2012 cited in V.E. Chukwu, ‘Potentials, drivers and barriers to green economy transition: Implications for Africa’ Advanced Journal of Plant Biology (2020) 1(1) 14
[22] UNECA, ‘Implications of the Inclusive Green Economy Transition For Africa’ in Enabling Measures For an Inclusive Green Economy in Africa ( Nations Economic Commission for Africa, Addis Ababa, Ethiopia 2016)
[23] Ibid
[24] V.E. Chukwu, (n 20) 14
[25] Ibid
[26] Ibid
[27] World Bank, ‘World development indicators’ (2014) <http://documents.worldbank.org/curated/en/752121468182353172/World-development-indicators-2014.> Accessed 20 March 2024
[28] UNECA, ‘Implications of the Inclusive Green Economy Transition For Africa’ in Enabling Measures For an Inclusive Green Economy in Africa ( United Nations Economic Commission for Africa, Addis Ababa, Ethiopia 2016) XI
[29] V.E. Chukwu, (n 20) 15
[30] Ibid
[31] UNEP, Green Economy Sectoral Study: BioTrade – A Catalyst For Transitioning to a Green Economy In Namibia (2012) cited in V.E. Chukwu, ‘Potentials, drivers and barriers to green economy transition: Implications for Africa’ Advanced Journal of Plant Biology (2020) 1(1) 14
[32] Ibid
[33] UNECA, ‘Implications of the Inclusive Green Economy Transition For Africa’ in Enabling Measures For an Inclusive Green Economy in Africa ( United Nations Economic Commission for Africa, Addis Ababa, Ethiopia 2016) XI
[34] Ibid
[35] V.E. Chukwu, (n 20) 13
[36] Ibid
[37] Ibid
[38] Ibid