Africa – News

CAIRO – Central Bank of Nigeria Governor Olayemi Cardoso has warned that climate change is no longer solely an environmental concern, but a direct and escalating financial risk to African economies, impacting key macroeconomic indicators.

Cardoso delivered the assessment during a keynote address at the Egypt 30by30 Programme in Cairo, an initiative organized by the Central Bank of Egypt and the International Finance Corporation (IFC). The program convened policymakers and financial leaders to discuss strategies for building climate resilience and fostering sustainable growth across the continent.

According to Cardoso, climate-related shocks are increasingly influencing sovereign credit ratings, the cost of capital, inflation dynamics, agricultural productivity, insurance market stability, and overall fiscal sustainability. He argued for a shift in perspective, urging that these risks be treated as systemic threats to financial systems, rather than peripheral environmental issues. “Climate risk is financial risk,” he stated, as reported by the Business Journal.

Even as acknowledging Africa’s minimal contribution to global greenhouse gas emissions, Cardoso emphasized the continent’s disproportionate vulnerability to the adverse effects of climate change. This reality, he said, necessitates coordinated action from central banks and development finance institutions to mitigate the growing risks.

Cardoso stressed the need for Africa to simultaneously pursue industrialization, job creation, and poverty reduction while transitioning towards low-carbon economic models and bolstering resilience against climate disruptions. He characterized the 30by30 initiative as embodying a shared continental vision for a future that is both economically sustainable and climate-conscious. The initiative, as described in reports from Leadership and Daily Times, aims to accelerate sustainable growth across Africa.

The CBN governor further underscored the importance of credibility as the foundation of financial resilience. He highlighted ongoing reforms within Nigeria, emphasizing their role in strengthening macroeconomic fundamentals and restoring confidence in the nation’s financial system. “In Nigeria, disciplined and transparent reforms are strengthening macroeconomic fundamentals and boosting confidence in the financial system, laying the groundwork for sustainable growth,” Cardoso said.

Cardoso’s remarks approach as the Egypt 30by30 Programme seeks to mobilize investment and expertise to support climate-resilient development projects across Africa. The program, a collaboration between the Central Bank of Egypt and the IFC, aims to catalyze private sector participation in sustainable finance and promote innovative solutions to address climate challenges.

The CBN has indicated its commitment to closer collaboration with the Central Bank of Egypt and partners within the World Bank Group to build a resilient, risk-aware financial framework, advance green finance initiatives, and strengthen cross-border cooperation. The bank aims to position Africa to not only withstand economic shocks but to thrive in a rapidly changing global economy.

Harare, Zimbabwe – Vice President Kembo Mohadi attended the closing of the 2026 Iconic Africa Summit & Honors on February 15th, an event convened to foster dialogue on sustainable development and regional integration across the continent.

The five-day summit, held at the Rainbow Towers and Convention Centre from February 11th to 15th, brought together over 1,000 delegates from 54 countries, including policymakers, civil society leaders and private sector representatives, according to organisers Iconic International Holdings, Pty Limited, and the Mayorkings Charity Foundation.

Discussions centered on key development priorities for Africa, including sustainable development, youth inclusion, regional integration, and leadership accountability. A strategic partnership with Concord for Young Women in Business Global, led by Apphia Musavengana, broadened participation among women entrepreneurs and youth groups, organisers stated.

Temisan O. Louis, President and Founder of Iconic International Holdings, emphasized the importance of collaboration with continental institutions. “The engagement with regional and continental institutions including the African Union Youth Council and the Internation Forum for Peace and Diplomacy, was aimed at deepening dialogue on policy, governance and development,” Louis said, according to a statement released by the organisers.

The summit operated under the theme “The Africa We Want: Sustainable Development, Everyone’s Responsibility” and featured the presentation of the ICONIC 500 list, recognizing individuals and institutions for contributions in governance, humanitarian service, youth development, and cultural preservation.

Auxillia Mnangagwa, First Lady of Zimbabwe, received the Iconic Woman of the Year Award for her humanitarian and social welfare initiatives. Prince Lindani of the Kingdom of Eswatini was honoured for his work in youth empowerment and cultural diplomacy. Former Malawian President Arthur Peter Mutharika was also recognized for his commitment to democratic governance, with the award accepted on his behalf by Ben Malunga Phiri of Malawi.

Zimbabwe’s former Youth Minister, Tino Machakaire, was acknowledged for his efforts in promoting youth-driven innovation and national development. The Babukisi Foundation received recognition for its work in preserving African heritage through digital platforms.

The event attracted high-level participation, including Vice President Mohadi, signalling growing regional interest in platforms designed to address Africa’s socio-economic challenges. Mohadi emphasized Zimbabwe’s commitment to regional stability and economic growth in Africa during the summit, according to reports.

Participants indicated that outcomes from the deliberations are expected to inform policy engagement, strengthen partnerships, and shape youth-focused programmes across the Southern African Development Community and beyond. No specific policy commitments were publicly announced at the conclusion of the summit.

Nigeria’s foreign reserves have reached $46 billion, the highest level in a decade, even as concerns mount that President Bola Tinubu’s economic reforms may prioritize macroeconomic stability over tangible improvements in living standards and sustainable development.

The World Bank recently lauded Tinubu’s reform drive, citing Nigeria as a frequent global reference point for implementation. However, Kingsley Moghalu, former Deputy Governor of the Central Bank of Nigeria and President of the Institute for Governance and Economic Transformation (IGET), cautioned that without fundamental changes in governance – specifically accountability, transparency, and the rule of law – the reforms risk becoming “a well-funded mask for governance decay.”

Moghalu argues that while macroeconomic stability is a necessary tool, This proves not an complete in itself. He contends that the Tinubu administration’s policies, including the removal of fuel subsidies and efforts to stabilize the naira, fail to address systemic weaknesses in human development, basic services, and institutional integrity. The Central Bank has achieved success in stabilizing the exchange rate and curbing inflation, but the benefits have yet to significantly impact ordinary Nigerians.

The removal of fuel subsidies, for example, was implemented with insufficient planning for mass transit and other social infrastructure. While the federal government has realized savings, these have not yet translated into visible improvements in healthcare, education, or access to safe drinking water. According to recent data, only 32% of Nigerians have access to safe drinking water at home.

Moghalu emphasizes the need for structural transformation, drawing parallels with the economic successes of Southeast Asian nations like Singapore, Malaysia, and Indonesia. These countries, he notes, paired economic policies with stringent behavioral reforms to achieve lasting growth. Nigeria, in contrast, continues to grapple with significant developmental challenges. The country ranks 140 out of 180 on Transparency International’s Corruption Index and 164 out of 193 on the UN Human Development Index. The World Bank’s Human Capital Index estimates that a child born in Nigeria today has only a 36% chance of reaching full productive potential.

Nigeria’s economy remains heavily reliant on oil, with manufacturing contributing a relatively small 8–10% of GDP. Electricity supply remains constrained at approximately 5,000MW, far below the level required to support robust industrial productivity. According to reports, the Tinubu government has secured loans worth $6.45 billion from the World Bank in the last 16 months, with an additional $1.57 billion recently approved for various projects. Further borrowing is anticipated, potentially bringing Nigeria’s total debt to the World Bank to $9.2 billion in 2025, and potentially $9.6 billion, according to recent projections.

Moghalu urges a shift away from what he calls a “growth delusion” towards a development strategy grounded in transparency, accountability, and citizen-centered policies. He believes that only such a foundation can unlock Nigeria’s potential and deliver tangible prosperity. The World Bank has approved 36 loan requests to the Federal Government, amounting to a substantial total of $24.088 billion within five years, raising concerns about the sustainability of these financial commitments and their potential long-term effects on the economy.