The 29th UN Climate Change Conference (COP29), currently underway in Baku, Azerbaijan, has once again brought the world’s attention to the urgent need for decisive action on climate change. As nations gather to discuss the future of our planet, African leaders, particularly Rwanda’s representatives, brought a powerful message to the table: Africa is not just a victim of climate change but a proactive agent of change. With a focus on resilience, economic transformation, and innovative financing, African nations have highlighted the path forward to ensure sustainable and inclusive growth in the face of escalating climate challenges. Rwanda, often seen as a model of progressive environmental policies in Africa, used COP29 to emphasise the importance of integrating climate resilience into economic planning. President Paul Kagame's speech underscored that the time has come for Africa to take charge of its destiny by adopting climate-smart strategies that not only mitigate environmental risks but also stimulate economic development. He highlighted how climate change, if left unchecked, threatens to reverse years of economic progress, especially in agriculture, which remains the backbone of many African economies. By investing in sustainable agricultural practices, Rwanda aims to achieve food security while reducing greenhouse gas emissions — a critical balance that other African nations must also strive for. African leaders at COP29 have collectively acknowledged that resilience is no longer an option but a necessity. The continent, despite being one of the least contributors to global carbon emissions, is disproportionately affected by climate change, with extreme weather events becoming more frequent and severe. As President Kagame eloquently noted, building climate resilience is about more than just surviving — it’s about creating systems that thrive even in adversity. For Africa, this means rethinking traditional economic models and embracing a transformation that is rooted in both green and blue economies. Central to this transformation is the agricultural sector, which employs the majority of Africa’s workforce and is highly vulnerable to climate variability. Rwanda's strategy of adopting climate-smart agriculture serves as a blueprint for other nations. By focusing on resilient crop varieties, efficient water management, and agroforestry, Rwanda is demonstrating that it is possible to boost agricultural productivity while also protecting the environment. This approach not only helps mitigate the effects of climate change but also ensures that communities are better prepared to adapt to the changing climate. However, as African leaders emphasised, building resilience requires more than just policy shifts — it needs substantial financial support. One of the most pressing issues raised at COP29 was the lack of access to climate finance for African countries. The pledges made by developed nations in previous climate summits have often fallen short, leaving African countries to fend for themselves. President Kagame, who has been a strong advocate for innovative climate financing, reiterated the need for mechanisms that do not saddle already debt-burdened nations with more loans. He called for increased use of debt-for-nature swaps, where debt relief is provided in exchange for commitments to invest in conservation and sustainable projects. Such financial tools can provide African nations with the breathing space they need to invest in climate adaptation and resilience without further compromising their fiscal health. In this context, the role of parametric insurance was highlighted as a critical tool for disaster preparedness and economic stability. Unlike traditional insurance, which is based on loss assessments, parametric insurance provides immediate payouts when specific environmental conditions, such as rainfall levels or temperatures, are met. This swift financial support can be a lifeline for farmers and communities devastated by climate shocks, enabling them to recover quickly and continue their livelihoods. Lesley Ndlovu, CEO of the African Risk Capacity Group, shared that parametric insurance has already covered millions across the continent, proving its effectiveness in cushioning the economic impact of natural disasters. By scaling up such solutions, African countries can better protect their economies from the uncertainties of a changing climate. Beyond agriculture, African leaders spoke passionately about the need to harness technology for a green and blue economic renaissance. Technology, they argued, is a game-changer that can help Africa leapfrog into a sustainable future. From data analytics and satellite monitoring to mobile platforms that deliver real-time climate information to farmers, technology can transform how African economies respond to climate risks. Various leaders highlighted that with the right technological tools, Africa can not only adapt to climate impacts but also turn these challenges into opportunities for growth. For example, investing in renewable energy, digital agriculture, and eco-friendly industries can generate new jobs and reduce dependency on fossil fuels. But technology alone is not enough. Access to innovative financing remains a significant barrier to achieving these ambitious goals. At COP29, the conversation around green and blue bonds gained traction, with African nations pushing for greater access to these financial instruments. These bonds can fund projects that promote sustainable development, such as reforestation, renewable energy infrastructure, and coastal protection. By tapping into global capital markets with these bonds, African nations can finance large-scale projects that not only reduce emissions but also build resilience against climate change. JP Fabri is an applied economist.
