Ghana, Gambia, Liberia, Sierra Leone and Sudan have signed a memorandum of understanding to commit 8 million dollars annually from their budgets to promote climate adaptation and support SMEs in their respective countries.
EFFECT OF CLIMATE CHANGE AND $100-BILLION PLEDGE MIRAGE BY DEVELOPED ECONOMIES
Africa has not been spared by the ravages of climate change but promises made by developed economies to mitigate the impact on the continent and other vulnerable countries with 100 billion dollars are yet to be backed by action.
It was in Sharma El Sheik, Egypt during the COP 27 in 2022 that biggest emitters of carbon renewed their commitment to reduce emissions by 1.5 degree Celsius. And to Ghana, Gambia, Liberia, Sierra Leone and Sudan, there is no better place to sign an MOU to scale up their budgetary allocation to climate change issues than at Sharm El Sheik.
AfDB ANNUAL MEETINGS
This was done on the sidelines of the African Development Bank, AfDB, annual meetings underway at Sharm El Sheik in Egypt.
The agreement indicates that from the next five years these countries including Ghana will commit 8 million dollars from taxes raised domestically to bolster private sector led SMEs while enhancing climate resilience.
Under the agreement these countries will even contribute to the replenishment of the African Development Fund, the soft loan arm of the African Development Bank Group.
The Minister of State at the Ministry of Finance, Dr Mohammed Amin described the MOU as a reflection of Ghana’s determination to ramp up domestic resources to support SMEs, which are catalyst for growth, job creation and poverty reduction.
“It is better to mobilize our own resources to address challenges that come with climate change than to wait for pledges which are yet to materialized”.
Ghana, Gambia, Liberia, Sierra Leone and Sudan are in one constituency in the African Development Bank, AfDB.