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In pursuit of realizing the nation’s 2030 vision to become an upper-middle-income society, the 2024 Zimbabwe Economic Development Conference in the resort city of Victoria Falls is focusing on building resilience to climate change.
The Conference is running under the theme ‘Building Resilience and Driving Economic Transformation under Climate Change’ from 14-18 September 2024 at the prestigious Elephant Hills Hotel in Victoria Falls.
Addressing the conference, His Excellency Mr. Edward Kallon, the UN Resident and Humanitarian Coordinator for Zimbabwe, thanked the Ministry of Finance, Economic Development, and Investment Promotion, and particularly Professor Ashok Chakravarti for his unwavering commitment to facilitating policy and research in working towards realizing the nation’s 2030 vision to become an upper-middle-income society.
“The conference’s theme, “Building Resilience and Driving Economic Transformation under Climate Change,” is particularly timely as Zimbabwe, the SADC region and the world face recurrent climatic shocks. The present El Niño-induced drought, the most severe in 40 years, affecting millions, underscores the urgency of our task.
“Zimbabwe, like many other countries, faces significant challenges due to the impacts of climate change. The El Nino phenomenon has had negative implications on economic growth, agricultural yields, food security, energy, water, sanitation and hygiene, health, and education sectors. The drought cut Zimbabwe’s cereal production by 77 percent, leaving about 60 percent of the country’s population food insecure,” HE Kallon said.
To build resilience and drive economic transformation, the UN Senior Offical shared several recommendations as outlined below:
Mobilizing Resources for Climate Resilience: To fill the adaptation financing gap, Zimbabwe must strategically leverage both domestic and international resources. The national budget should prioritize climate adaptation projects, complemented by seeking support from international institutions such as the Green Climate Fund. Furthermore, the private sector can be engaged through incentives and public-private partnerships, fostering investments in renewable energy, climate-smart agriculture, and sustainable infrastructure. Green bonds present an innovative avenue to finance climate projects, expanding our financial resource base.
Ensuring Effective and Efficient Resource Utilization: Ensuring that resources are used effectively and efficiently is critical. This requires a transparent and accountable governance framework. Establishing clear metrics and reporting mechanisms can help monitor the progress of climate resilience programmes. Additionally, investing in capacity building for local communities and governmental bodies ensures that stakeholders are knowledgeable about implementing and managing adaptation strategies. Incorporating advanced technology and data analytics can further optimize resource allocation and track project outcomes. This requires a whole-government and inter-sectoral collaboration with one entity facilitating.
Catalyzing Coordination and Collaboration: To catalyze and improve the coordination and collaboration of resources, Zimbabwe should foster partnerships between government agencies, non-governmental organizations, the private sector, and the international community. Establishing a robust national resilience platform led by the Government with support from the UN and development partners to climate resilience can help align efforts and avoid duplication of initiatives. Given the borderless nature of climate shocks as witnessed by the current El Nino-induced drought and Cyclone Idai and Freddy in recent years, regional collaboration with neighboring countries can also facilitate share knowledge, resources, and strategies, enhancing collective resilience against climate impacts.
El Niño and La Niña Preparations and Financial Access: Proactive preparation for El Niño and La Niña events can translate into better access to finance by showcasing Zimbabwe’s commitment to mitigating climate risks. We can draw lessons from our first anticipatory action plan which was led by the Department of Civil Protection and supported by the UN and Partners with a total budget of US$28 million of which close to US10 million was mobilized from the UN Central Emergency Response Fund.
The key takeaway from the anticipatory action is that effective preparation requires the establishment of early warning systems, the maintenance of strategic food reserves, and the implementation of crop insurance programs. By showcasing robust risk management strategies, Zimbabwe can bolster its credibility and attract investment from international financial institutions, especially after recently receiving US$32 million from the Africa Risk Insurance and climate resilience-focused donors.
Our proactive approach to managing potential disasters is essential as threats approach. I would like to commend the Government of Zimbabwe for its timely decision to declare a State of Disaster, as announced by His Excellency the President, followed by a comprehensive national response plan. The UN and other partners have been working to support this effort, launching flash appeal amounting to US$430 million, which accounts for 30% of the national response.
HE Kallon added that at the center of building resilience and driving economic transformation under climate change requires massive resources, innovation, technology, infrastructure, overhauling, re-aligning, and making community infrastructure and industries climate-proof.
Countries, including Zimbabwe, face significant obstacles: rising debts, escalating climate threats, and financial systems inadequate for fostering their development or prosperity.
A crucial reform of the global financial system is needed—one that ensures fair opportunities for growth and resilience.
He shared the following perspectives for the conference’s consideration as critical for joint advocacy to facilitate resilience building and driving economic transformation under climate change:
Debt relief and restructuring are vital for Zimbabwe, burdened by debts impeding growth. Reforms such as ‘pause clauses’ for natural disasters and comprehensive debt restructuring are essential as the country confronts its worst drought in 40 years. This is critical to advance indispensable sectors such as food systems, digital connectivity, health, and clean energy.
Climate Finance: Prioritizing climate finance fosters resilience against ecological disruptions and ensures the socio-economic stability of communities. This necessitates international cooperation that extends beyond funding, embracing integrated strategies that incorporate technology and innovation.
SDGs stimulus: the UN Secretary-General in his post-covid policy briefs proposed an annual SDGs stimulus of USD 500 billion, backed by the creation of a Multi-Purpose Trust Fund, which aims to mobilize resources crucial for advancing food systems, digital connectivity, health, education, clean energy, climate action, and jobs and social protection—cornerstones of prosperity and equity. We have been testing here in Zimbabwe with a USD 10 million from the SDG Fund and an additional US$ 35 million of blending finance from the private sector such as Old Mutual. My proposal is we should have a Zimbabwe SDG implementation costed plan within the NDS-1 and 2, a direct matrix from the 2030 National Vision to become an upper middle-income society.
Trade Concessions and Economic Partnerships: Reforming trade policies to guarantee fair market access for developing countries is crucial. Strategic partnerships can unlock economic opportunities, allowing nations to harness their resources sustainably.
This conference offers a unique platform for ambitious and compassionate collaboration. Our efforts today will shape a future of shared prosperity, justice, and environmental sustainability, securing a prosperous and equitable path for Zimbabwe and nations worldwide.
“By implementing these strategies, Zimbabwe—a nation endowed with abundant natural resources and a rich cultural heritage—can effectively tackle its climatic and economic challenges. This approach includes debt relief/resolution from major creditors translating urgently the structured high-level dialogue we have had into action, investing in Sustainable Development Goals (SDGs), and securing climate finance.
“The UN Country Team in Zimbabwe stands ready as facilitator and convenor to work with all stakeholders to support the Government of Zimbabwe to achieve the national vision to become an upper middle-income society by 2030 and the 2030 Agenda for Sustainable Development in the face of climate change,” he added.
