By Otsile Malebaco
The global climate crisis has created a need for a just transition to a low-carbon economy. At the forefront of this shift are African countries, many of which contribute minimally to global emissions but are disproportionately affected by climate change. As Africa grapples with its challenges posed by climate change, the role of green public finance has become more significant than ever in tackling climate issues and moving towards a just transition for African societies. Notably, Africa faces challenges in balancing economic growth, that is inclusive with access to energy and environmental obligations.
In exploring green public finance as a topical area, the African Organisation of Public Accounts Committees (AFROPAC) hosted a webinar, titled “Green Accountability in the Context of Just Transition in Africa”. The webinar speakers were Mr. Johannes Fergusson – Head, Public Finance and Administration at Deutsche Gesellschaft für Internationale Zusammenarbeit, Dr Shanaz Broermann – Public Finance Management Consultant, Mr. Tatenda Mzezewa – International Private and Public Finance, AFRODAD, Mr. Abbey Oweiziarerebo – Director of Audit at the Office of the Auditor-General for the Federation of Nigeria and Hon Mark Botomani – Secretary General of AFROPAC.
The webinar was supported by the Good Financial Governance in Africa project implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and commissioned by the Federal Ministry for Economic Cooperation and Development (BMZ).
Accountability in Green Public Finance
As highlighted by Mr. Fergusson and Dr. Broermann, accountability is a key factor in ensuring a successful green transition. Supreme audit institutions (SAIs) and Public Accounts Committees (PACs) play a pivotal role in scrutinizing public spending and ensuring that funds allocated for climate initiatives are used effectively and transparently. The role of SAIs is to also review policies, ensuring the implementation of government policy and good governance. PACs have the ability to strengthen their impact on climate governance by collaborating with climate-relevant committees, such as those handling energy, natural resources and budgets. This collaboration can include mutual advice on climate-related expenditure priorities.
It was recommended that PACs and SAIs should involve climate experts early in audit planning to align with sustainability and biodiversity goals. Both entities could develop climate-specific recommendations in their reports and engage with international and regional groups like AFROSAI and the International Organization of Supreme Audit Institutions Working Group on Environmental Auditing (INTOSAI WGEA) to promote peer learning and coordinated audits. Furthermore, they should advocate for fiscal transparency and integrate the green and just transition agenda throughout the budget process.
Good practice initiatives of the SAIs in Africa supported by GIZ demonstrate the relevance of climate aware auditing. Countries like Tanzania, Uganda and Nigeria have successfully carried out environmental audits to assess the effectiveness of their national climate policies. In Tanzania, audits revealed that flood control measures were inadequately implemented, while Uganda’s audit on afforestation highlighted the need for better restoration practices.
The Role of Debt in International Climate Financing
One of the most pressing challenges for African countries is financing their green transition without exacerbating debt levels. Many African nations already spend more on debt servicing than on essential services such as education and healthcare. The growing reliance on debt instruments for climate finance, particularly for mitigation efforts, has raised concerns about the sustainability of this approach.
Mr. Tatenda Mzezewa: International Private and Public Finance from AFRODAD presented alternative financing mechanisms that do not increase debt burdens of African countries. One such mechanism is debt-for-nature swaps, where a portion of a country’s debt is forgiven in exchange for its commitment to invest in environmental conservation.
Ensuring a just transition requires collaboration between governments, development partners, international donors and accountability institutions. Supreme Audit Institutions and Public Accounts Committees must work closely to ensure that climate finance is directed towards projects which benefit the most vulnerable communities and contribute to long-term sustainability.
In his closing remarks, Hon. Botomani, Secretary General of AFROPAC, acknowledged that “Given the pressing nature of climate change – an issue that disproportionately affects Africa despite its minimal contribution to global pollution -AFROPAC recognizes the urgency of addressing these knowledge gaps in state institutions on green accountability.” In response to the insights gathered during the webinar, AFROPAC is currently discussing the development of a needs assessment to identify the specific areas where members require further training. This initiative will also provide a clearer picture of what various countries are doing in relation to climate financing and oversight.
