As climate change bites harder: African central banks bosses discuss stability, sustainability….

This was the focus of AACB Governor’s symposium in Yaounde yesterday. Exchanges were on the theme: “Climate Change and Macroeconomic Stability: The Role of Central Banks”. 

The Minister of Finance, Louis Paul Motaze, represented the Head of State, Paul Biya, at the symposium. His counterpart of the Economy, Planning and Regional Development, MINEPAT, Alamine Ousmane Mey, also attended the symposium alongside the Governor of the Centre Region, Naseri Paul Bea.

Other officials at the event were; the  Chairperson of AACB,  Dr Priscilla Muthoora Thakoor, who is also the Governor of the Central Bank of Mauritius; the Governor of the Bank of Central African States, BEAC, alongside heads of central banks and  resource persons from across Africa and beyond.

Addressing delegates, Minister Motaze said it is time for Africa to rise to the billing and shape a common front in dealing with the shocks and threats of climate change. 

He averred that central banks of African countries must synergise to ensure monetary and budgetary policies tie with climate policy with accent on dialogue and projections in dealing with climate change risks.

Motaze noted that Africa is increasingly living the realities of the shocks of climate change. He said Cameroon like elsewhere is feeling the pinch with visible signs in parts of the Congo Basin in the South Region and the Lake Chad Basin in the north with local communities bearing the consequences of climate change.

The representative of the Head of State noted that despite being a low emitter of greenhouse gases, Africa is the victim of loss of biodiversity, rising sea levels, droughts, food and water security threats among others that distablise the growth.

He called for the integration of measures to deal with environmental risks and price instability among others to ensure sustainable development. 

The minister also praised the central bank leaders for federating forces to share experiences and solidify cooperation for a blueprint that will birth resilience and innovation in governance.

The Governor of the Bank of Central African States, BEAC, Yvon Sana Bangui, called for revolutionary adjustments in the policies of central banks to deal with the challenges of the times. 

He underscored that: “We must work with our development partners, modernise our system, retain investor confidence and guarantee a robust financial market”. 

He appealed to actors to exploit the spirit of African unity and fraternity to devise macroeconomic strategies to best deal with the risks climate change is posing to growth and stability. 

Africa needs one voice on climate issues 

Africa Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, Francisca Tatchouop Belobe, underscored that to make meaningful strides in driving the continent’s position in dealing with climate change shocks, unity must remain the priority.

Tatchouop said the demand is urgent given that nine of 10 countries most vulnerable to climate change are found in Africa. She said the continent needs an estimated 30 million United States dollars annually to handle climate change related hurdles but maintained that funding remains insufficient.

The AU commissioner noted that Africa benefits just around 10 percent of climate financing despite being responsible for just four percent of greenhouse emissions. Central banks, she indicated, must collaborate to improve access to climate financing and carbon credits.

The AU, Tatchouop reiterated, is engaged at the level of G20 to put the Continent’s needs at the centre of global discourse in tackling climate change. Central banks, she noted, must develop innovative ideas in ensuring macroeconomic stability that ties with AU’s agenda 2063.

She called on the banks to analyses scenarios, anticipate vulnerabilities due to climate change to take actions that ensure resilience. 

Tatchouop proposed interest in green financing to mobilise capital for renewable energy and resilient infrastructure among others.

“We’ve reached tipping point”

The Chairperson of AACB raised an alarm at the conference that, the world has reached tipping point in greenhouse emissions and dangers of climate change. Dr Muthoora Thakoor said central banks must come on board with sustainable measures.

Climatic hazards, Dr Thakoor opined, are dealing a severe blow to the Gross Domestic Product, GDP, of African countries. She said climatic disruptions are responsible for about two to five percent GDP losses.

Climatic disruptions, she intimated, could result in lasting struggles for economies, exposing banks and insurers to heightened risk. Such situations, she warned, kills investor confidence and credit ratings. 

Climatic variables, Dr Thakoor maintained, must be adopted into risk assessment with monetary policies adjusted to accommodate green financing, climate-resilient agriculture, climate-adapted infrastructure and building of sustainable assets.

Time to appropriate technology, track data

Leonardo Gambacorta, Head of Emerging Markets, Monetary and Economic Department at the Bank for International Settlements, BIS, appealed to bank executives to appropriate technology in dealing with climate change-provoked constraints.

Climate change, Gambacorta stated, put economies in the situation of battling to ensure recovery and inflation at the same time. 

Banks, he declared, must be alert given the persistent swings between prolonged dry periods and downpours. He underscored the need for improved climate data and macro-economic models. 

Climate shocks if not anticipated, the BIS official said, could push up the cost of production and cause assets to lose value. In this age, he said macroeconomic indicators must be viewed alongside disaster estimates.

This article was first published in The Guardian Post Edition No:3639 of Friday November 28, 2025