Maputo, Mozambique — The African Development Bank (AfDB) has issued a stark warning, indicating that a powerful El Niño event could cost African economies up to $20 billion.
The phenomenon, characterized by unusually warm waters in the equatorial Pacific Ocean, poses a significant threat to the region’s economic stability. Despite projections that Africa’s economy would expand by 4. 2% in 2026, the AfDB now cautions that the El Niño event could see heavily affected countries lose up to 2% of their GDP.
This includes the disruption of agriculture, destruction of infrastructure, and increased strain on government finances.
The AfDB’s Director of Climate Change and Green Growth, Anthony Nyong, emphasizes that the damage would extend beyond immediate disaster losses, affecting food production, banking systems, government budgets, and long-term development. Officials commented on the matter. Agriculture, which millions of Africans depend on for rain-fed farming, is expected to bear the brunt of the climate shock.
Reduced harvests could lead to higher staple food prices, lower export earnings, and exacerbate food insecurity across vulnerable regions.
The AfDB’s warning comes at a critical time as many countries are beginning to emerge from years of high inflation and currency pressures.
The event could also lead to the weakening of banking sectors if governments struggle to repay loans used for rebuilding damaged assets.
Furthermore, the AfDB noted that prolonged drought and repeated flooding could accelerate migration from heavily affected communities, as households lose crops, livestock, and other sources of income.
The World Meteorological Organization (WMO) has urged governments to use seasonal forecasts and early warning systems to prepare for possible heatwaves, droughts, floods, and other extreme weather events expected over the coming months.
As Africa continues to grow, the AfDB’s warning underscores the need for decisive action in mobilizing and deploying capital at scale to sustain faster, inclusive, and more resilient growth. It is a reminder of the interconnectedness of global climate patterns and the potential for such patterns to impact economies worldwide.
*Additional reporting by ImNews | Sources consulted: 5*
—
This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Ayodeji Adegboyega
