The future of climate action companies in Africa

Investing and supporting the right companies will play a crucial role in mitigating the impacts of global climate change 🌍 🍀 🌊 

The world is grappling with rising sea levels and declining water supplies, which are directly affecting the livelihoods of millions of people across the globe.

Africa, despite being responsible for less than 10% of global greenhouse gas emissions, is unfortunately, highly vulnerable to the effects of climate change..

For example, over 110 million people in Africa were directly affected by climate and water-related hazards in 2022, resulting in economic damages of over 8.7 billion EUR.

Likewise, the Emergency Event Database reported approximately 5,000 fatalities, with 48 percent attributed to drought and 43 percent to flooding. However, the true toll is likely much higher due to under-reporting. Investing in climate action, and by extension, companies addressing climate change, will be crucial in addressing these repercussions in Africa.

Thankfully, investments into the local industry are already picking up! 📈

As of end-December 2022, the African Development Bank had approved 34 projects for which it has deployed 920 million EUR equivalent in CIF resources in addition to 1.99 billion EUR equivalent of its own co-financing deployed into climate change initiatives on the continent.

Likewise, venture capital recorded a cool US$800 million deployed into African climate action startups for all of last year!
Africa's abundance of renewable energy resources, available land, and young population make it an attractive investment destination for climate action 🌄 

The opportunities in the continent are drawing investors who are determined to bring about meaningful change for global climate issues..

Another example of this has come in the form of ‘carbon sinks’ on the continent.

According to the United Nations Development Programme (UNDP), carbon markets are trading systems in which carbon credits are sold and bought. Of which, carbon sinks are the physical embodiments that can help accumulate and store carbon, removing it from the atmosphere, and accumulate carbon credits in the process!
Africa, with its rich mosaic of natural ecosystems, could potentially build carbon credits into the continent's next significant export 🌿 🍃 And with it, the tech solutions that can enable its fostering, maintenance, and management. All developed and deployed locally 💻 🤓 👧 🛠 

In the recent COP28 UN Climate Change Conference in Dubai, more deals were announced as part of the Africa Carbon Markets Initiative (ACMI), with an aim to raise US$6 billion by 2030.

At EE Digital Capital, we’re at the forefront of these opportunities, seeing first hand how the right levers of capital can make lasting changes on the ground. And Africa’s role in our global pursuit of sustainability, though yet fully realised, is definitely on its way 🚂 🚂

#africa #tech #climatechange

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​𝐈𝐟 𝐲𝐨𝐮'𝐯𝐞 𝐞𝐧𝐣𝐨𝐲𝐞𝐝 𝐭𝐡𝐢𝐬 𝐩𝐢𝐞𝐜𝐞 𝐨𝐟 𝐜𝐨𝐧𝐭𝐞𝐧𝐭, 𝐥𝐞𝐚𝐯𝐞 𝐮𝐬 𝐚 𝐜𝐨𝐦𝐦𝐞𝐧𝐭, 𝐬𝐡𝐚𝐫𝐞 𝐭𝐡𝐢𝐬 𝐩𝐢𝐞𝐜𝐞, 𝐨𝐫 𝐬𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐨𝐮𝐫 𝐑𝐒𝐒 𝐟𝐞𝐞𝐝!

​𝐏𝐥𝐞𝐚𝐬𝐞 𝐠𝐢𝐯𝐞 𝐮𝐬 𝐚 𝐟𝐨𝐥𝐥𝐨𝐰 𝐨𝐧 𝐬𝐨𝐜𝐢𝐚𝐥 𝐦𝐞𝐝𝐢𝐚 @ 𝐄𝐄 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐂𝐚𝐩𝐢𝐭𝐚𝐥