African economies should shift towards a green economy model in order to achieve structural transformation that builds industrial capacity, value added and quality employment, according to a UN economic report on Africa 2016.
The report released on Tuesday by the United Nations Economic Commission for Africa (UNECA) in the Rwanda Capital Kigali recommends Africa to adopt the green pathway towards sustainable and inclusive development to avoid pitfalls and mistakes made by some developed economies.
The 2016 report dubbed "Greening Africa's industrialization-Transformative Industrial Policy" says that Africa as a late industrializer has a unique opportunity to avoid the pitfalls of costly environmental fall-outs, by leapfrogging to a green industrial development pathway.
"Despite having the lowest rates of emissions, Africa is highly vulnerable to environmental and climatic hazards, and its continued dependence on natural resources and fossil fuels will expose the country to enormous environmental challenges," reads part of the findings.
Speaking to reporters shortly after launching the report, Giovanie Biha, deputy executive secretary for knowledge delivery of the UNECA said that it' s possible now for Africa to enhance economic growth and human development by creating the opportunity for green growth and employment.
"More regional policymakers throughout the continent are supporting green economic principles to meet their sustainability goals and this should cut across all nations on the continent," she noted.
Biha stated that the green economy may be in the way of Africa' s industrialization even if some of the continent's industries are still grappling with efficient use of energy issues related to climate change.
Greening industrialization, according to the report which also provides governments with greening policy suggestions, provides thrust for turning current supply chains linking natural resources to markets, into value chains that diversify Africa's economies.
Discussants at the launch recommended Africa to shift away from being a marginal supplier of raw commodities, to harness the full potential of its natural resources. The report banks on both Agenda 2030 and 2063 of Paris Agreement on Climate Change, to emphasize the need for green industrialization and sustainable development in Africa.
The findings indicate that Africa is the fastest urbanizing region globally, growing at 4.5 percent per year, with more than 50 percent expected to live in urban areas by 2035.
The continent's growth is expected to increase to 4.3 percent in 2016 and 4.4 percent in 2017 despite internal and external risks such as weak global economic recovery and the economic slowdown in China, low commodity prices and currency depreciation, tightening of monetary policy in the U.S. and the EU and weather related shocks and security concerns in some countries, says the report.
The report further says that increasing urbanization and young population needs to be matched with an industrialization process that provides the skills demanded. Dr. Vincent Biruta, Rwanda minister of natural resources said that the shift towards a green economy holds huge economic and social potential for African economies. "Rwanda has embarked on a campaign to achieve green economy.
Our country is accredited for direct access to funding from the international Green Climate Fund. We have also endorsed Paris Agreement on climate change," he said. In 2008, the small central African nation passed a law that banned the importation and use of polythene bags, while possession or smuggling them into the country attracted heavy penalties.
The 2016 report highlights that Africa is poised for growth through green industrialization and covers issues related to how the continent can achieve green industrialization.
It notes a lack of or inadequate infrastructure conducive for greening Africa's industrialization process but adds there's willingness on the part of governments to transition from coal to greener pathways of development.
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