Africa loses $1.84bn annually to natural hazards

AFRICA loses an average of $1.84 billion each year to natural hazards, with floods being the leading contributor, according to a new report by the Coalition for Disaster Resilient Infrastructure (CDRI).

The power sector accounts for 46 per cent of these risks, followed by telecommunications and transportation, underscoring the urgent need to rethink how infrastructure is designed and financed across the continent.

The Minister of State for Climate Change and Sustainability, Mr Seidu Issifu, disclosed this in a speech read on his behalf by the Technical Director, Office of the Minister of State, Mr Cedriz Dzelu, on Monday at the opening of the Second Africa Climate Summit ACS2 2025 in Addis Ababa.

He said the continent’s infrastructure financing needs were estimated between $130 and $170 billion annually, with existing deficits already slowing Gross Domestic Product (GDP) growth by around two per cent each year.

Mr Issifu said that the government of Ghana created a new office dedicated to driving climate resilience in Ghana.

According to him, plans were underway to establish a Climate Change and Sustainability Hub and dedicated units across ministries and municipal assemblies to mainstream resilience in policy and planning.

Mr Issifu said that Africa’s infrastructure priorities must extend beyond traditional roads and power plants to post harvest and cold storage systems in order to reduce food waste, market access infrastructure to connect farmers to markets, climate-resilient energy systems, sustainable transportation, and robust digital networks.

“Africa’s future must be built to last, resilient infrastructure is not only about protecting assets it is about securing food, connecting markets, reducing dependency, and safeguarding our people.” the Minister said.

The Chief Executive Officer (CEO) of Intelligence Nature International (INI), Dr William Bannerman, said Africa was shifting from pledges to action in the fight against climate change, with leaders calling for immediate investment in climate smart infrastructure and renewable energy.

He said Environmental, Social, and Governance (ESG) policies, climate finance, and sustainability reporting were central in driving accountability and attracting global investment.

Dr Bannerman said science was crucial for developing inclusive innovation in ensuring that solutions were tailored towards addressing Africa’s unique challenges while unlocking opportunities for growth and job creation.

“Africa is ready to lead. The time for declarations is over the time for delivery is now, participants stressed, urging governments, investors, and communities to move from commitments to concrete action,” Dr Bannerman added.

INI is a private firm that offers sustainability consulting services to organisations globally. It partners with and advise organisations across key sustainability issues through their sustainability strategy consulting.

The CDRI is a global partnership launched by the Government of India in 2019 to promote the resilience of infrastructure systems against climate change and natural disasters.

It aims to help countries design, build, and maintain infrastructure that can withstand disasters such as floods, cyclones, earthquakes, and rising sea.

The Second Africa Climate Summit ACS2 2025 is on the theme “Built to Last: Securing Africa’s Infrastructure Future.”