According to a study published last August by the United Nations Environment Program (UNEP), the opportunities offered by the green economy in Africa are abundant. “This report, entitled Africa Environment Outlook for Business shows that policymakers can create an enabling environment for investments that respond to the triple global crisis by adopting sound regulatory frameworks; investing in research, innovation and education; and promoting public-private partnerships and collaboration between governments, businesses and local communities," said Elizabeth Mrema, UNEP's Deputy Executive Director.
In support of its argument, the report showcases a range of success stories of green ventures today, as well as data on the potential for growth across sectors. For instance, digital technologies in agribusiness offer a US$1 trillion market towards feeding the continent's growing population, estimated to reach 2.5 billion by 2050.
digital technologies in agribusiness offer a US$1 trillion
“Africa can become trailblazer in renewable energy solutions”
More broadly, the report highlights Climate-smart opportunities for a net-zero transmission, thanks to climate tech, the application of technologies to combat global warming. "Africa can become a trailblazer in renewable energy solutions, with abundant solar, wind, hydro, biomass, and geothermal resources that may contribute to a 6.4 per cent increase in GDP from 2021 to 2050. Ocean renewable energy is a vast untapped resource for Africa, with the potential to generate between 100 to 400 per cent of current global energy demand,” the report estimates.
To this end, businesses in the energy efficiency sector can provide products and services, such as lighting systems, smart buildings, and efficient industrial processes. However, this potential is hampered by an annual gap in climate financing of $213.4 billion.
“Africa faces not just incredible challenges on climate change, nature loss, and pollution, but has a uniquely dynamic economic landscape, youthful demographic, and opportunities for decarbonization, digital transformation and for leveraging an environmental, social and governance (ESG) framework for sustainability in the business sector,” said Rose Mwebaza, UNEP Director and Regional Representative for Africa. “With this new report, we hope to inspire African entrepreneurs and businesses, especially audacious first movers, to engage in green growth and contribute to sustainable development goals.”