AfDB Warns of $20 Billion Loss from Upcoming El Niño

The African Development Bank (AfDB) has raised alarms about an imminent 'super' El Niño weather event that could result in up to $20 billion in public finance losses for African countries and displace millions. Anthony Nyong, AfDB's Director for Climate Change and Green Growth, indicated that affected nations might experience GDP losses ranging from 1 to 2 percent.

This projection aligns with findings from the World Meteorological Organisation (WMO), which states that Africa loses between 2 and 5 percent of its GDP annually due to extreme weather events. Nyong noted that Africa could require as much as $100 billion for adaptation funding if the El Niño impacts materialize as feared.

He specifically mentioned Nigeria, Sudan, South Sudan, the Democratic Republic of Congo, Somalia, Mali, and Burundi as countries likely to face adverse effects. The AfDB is considering restructuring investments to assist these nations in the event of the storm, highlighting the urgent need for Development Finance Institutions to enhance their focus on climate finance and ESG-compliance.