Addressing Africa's Workforce Challenges Amid Climate Change: Strategies for a Just Transition

A key presentation during the session was delivered by Ms. Nadia Ouedraogo, Economic Affairs Officer at the ECA, who focused on the precarious state of Africa's labor market.

The Eleventh Session of the Africa Regional Forum on Sustainable Development (ARFSD) recently hosted a significant side event that brought together key policymakers, economists, and development experts to discuss the challenges and opportunities facing Africa's workforce amid the ongoing climate crisis. This critical dialogue, organized by the UN Economic Commission for Africa (ECA) – Macroeconomic Policy, Finance, and Governance Division, was centered around the findings of the Economic Report on Africa 2023 and 2024, which highlighted the urgency of adopting strategic interventions to ensure a just and sustainable transition for Africa's labor market.

Informal Employment: A Vulnerable Workforce in the Face of Climate Change

A key presentation during the session was delivered by Ms. Nadia Ouedraogo, Economic Affairs Officer at the ECA, who focused on the precarious state of Africa's labor market. She revealed that informal employment accounts for a staggering 83% of total employment across the continent, with agriculture, construction, and services being the primary sectors. These sectors are, unfortunately, highly vulnerable to climate-induced shocks such as droughts, floods, and extreme temperatures. The informal workforce, consisting mainly of low-wage and vulnerable workers, is particularly at risk, with women and youth being disproportionately affected by job losses and income reductions.

Ms. Ouedraogo stressed the need for targeted policies and strategies to safeguard these workers, emphasizing that the current trajectory would only deepen inequality and unemployment if the necessary adjustments are not made to the labor market.

Climate Change’s Impact on Growth and Financial Stability

The session’s moderator, Ms. Zuzana Schwidrowski, Director of the Macroeconomic Policy, Finance, and Governance Division at the ECA, stressed the multifaceted nature of climate change’s impact. She underscored how climate change-induced shocks have already started to reduce economic growth, deplete fiscal reserves, and destabilize financial systems across Africa. In addition to these economic challenges, climate change is also destroying lives and livelihoods, deepening poverty, and worsening inequality.

Despite these alarming trends, Ms. Schwidrowski pointed out that this "megatrend" also presents unique opportunities for growth, innovation, and structural transformation that Africa cannot afford to miss. Africa has the potential to leverage climate action to transform its economies, foster green growth, and create millions of new jobs, especially if it invests in sustainable practices and solutions.

The Call for Climate Action: A Roadmap for a Sustainable Future

Mr. Sam Mugume Koojo, Assistant Commissioner in the Ministry of Finance, Planning, and Economic Development of Uganda, added his voice to the call for climate action. He emphasized the critical importance of a just and sustainable transition, which must focus on creating decent jobs, promoting inclusive growth, and ensuring that Africa’s transition to a low-carbon economy does not leave anyone behind. He highlighted that collaboration among policymakers, the private sector, and development partners is essential in addressing the complex and multifaceted challenges posed by climate change.

Mr. Koojo’s remarks aligned with the calls of Ms. Olapeju Ibekwe, CEO of Sterling One Foundation, who stressed the role of public-private partnerships in driving investment into green sectors. She also highlighted the need for gender-inclusive approaches that ensure women are not left out of the green transition process, particularly when it comes to access to decision-making roles and skill development.

The Global Crisis and the Risk to Livelihoods

Mr. Andrew Mundalo Allieu, Senior Economist at the International Labour Organization (ILO) Regional Office for Africa, painted a dire picture of the global scale of the crisis. According to Allieu, the livelihoods of 1.2 billion workers, whose jobs are directly dependent on the natural environment, are at risk due to climate change. A significant concern is the impact of rising temperatures, which have already led to substantial losses in working hours. For example, heat stress has been responsible for a 2.3% loss in global working hours, and this figure is expected to escalate dramatically, potentially leading to the loss of 14 million jobs by 2030.

The long-term consequences of climate change on the workforce are profound. Allieu warned that the worsening effects of heat stress, coupled with extreme weather events, would undermine job security, particularly in vulnerable regions like sub-Saharan Africa. This scenario could further exacerbate social and economic disparities and hinder progress toward achieving sustainable development goals (SDGs).

Strategic Regional Coordination for Climate-Resilient Employment

In his address, Mr. Etienne Espagne, Senior Climate Economist at the World Bank, emphasized the need for regional coordination to build a more climate-resilient workforce in Africa. As climate change disrupts agricultural yields and redefines commodity values, aligning supply chains with regional strengths and capabilities is crucial for reducing risk and fostering shared prosperity. He highlighted that although renewable energy costs are steadily decreasing, challenges related to market uncertainty remain. To mitigate these risks and ensure the creation of green jobs, early investments and coordinated actions are essential.

Mr. Espagne also noted that the potential for job creation in the green economy, especially in renewable energy, sustainable agriculture, and carbon markets, is immense. If Africa can tap into these opportunities, it could not only meet its climate goals but also create millions of jobs by 2050. For example, the carbon market alone could support up to 400 million jobs over the next few decades.

Addressing Economic Losses and Inequality

The panel discussions highlighted the stark economic losses that climate change is projected to inflict on Africa. A 1% rise in global temperatures could result in a 2.2% GDP loss across the continent by 2030, with the most severe effects felt in West Africa. Beyond economic losses, climate change is also contributing to conflicts and displacement, placing additional strain on fragile labor markets in regions already facing high levels of poverty and unemployment.

However, the experts were quick to point out that transitioning to greener and more sustainable economies could mitigate these losses while generating a wide array of job opportunities. The challenge, they said, lies in ensuring that the benefits of this transition are equitably distributed to avoid worsening inequality.

Ensuring a Just Transition

In closing, panelists identified several key strategies to ensure that Africa’s transition to a greener, more sustainable economy is both just and inclusive. These include investing in reskilling and upskilling initiatives tailored for youth and informal sector workers, promoting innovative financing models for green projects, and strengthening social protection systems to safeguard vulnerable communities.

To conclude, while the challenges facing Africa’s workforce in the context of climate change are immense, the solutions are within reach. By prioritizing a just and sustainable transition, leveraging the opportunities created by green industries, and ensuring inclusive policies, Africa can pave the way for a resilient future that benefits all of its people.