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African Leaders Must Prioritise Climate Risks—Verkooijen

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Professor Patrick Verkooijen Climate Risks

By Kester Kenn Klomegah

In this insightful and wide-ranging interview, Professor Patrick Verkooijen, Chief Executive Officer of Global Center on Adaptation discusses the organization’s establishment, its main objectives, challenges and plans for the future.

The Global Center on Adaptation in Africa (GCA Africa), based at the African Development Bank (AfDB), has launched the Africa Adaptation Acceleration Program to mobilize $25 billion to scale up transformative actions on climate adaptation. It hopes to mobilize funds and bridge the financing gap for climate adaptation across Africa. Here are the interview excerpts:

What does the setting up of the Global Center on Adaptation mean for Africa?

Africa is on the frontline of our climate emergency. Five out of the 10 world’s most climate-vulnerable countries are in Africa. Contributing a meagre 5 per cent of global greenhouse gas emissions, Africa is more victim than a contributor to climate change, with the bulk of its emissions deriving from deforestation and poor land-use practices. Climate change is already negatively affecting the continent’s progress towards the Sustainable Development Goals.

Its impacts are showing up in extreme weather events such as floods, droughts and heatwaves affecting most of the continent with severe economic consequences. Hurricanes Idai and Kenneth in 2018 that hit Mozambique, Zimbabwe and Malawi affected over 3 million people, led to the death of over a thousand people and damaged infrastructure worth about $2 billion.

Compounding the already enormous climate challenges, COVID-19 has ushered in an era of multiple, intersecting systemic shocks, and one of its casualties has been our capacity to adapt and respond to escalating climate risks.

Investment in climate adaptation fell in 2020, even as more than 50 million people were affected. There is no doubt the adaptation challenge for Africa is extraordinary. For us, although the adaptation challenge is a global agenda, our priority is Africa.

We must make up for lost ground and lost time by accelerating action on climate adaption and resilience. Climate change did not stop because of COVID-19, and neither should the urgent task of preparing humanity to live with the multiple effects of a warming planet. If the virus is a shared global challenge so too should be the need to build resilience against future shocks.

In September last year, in the midst of the pandemic, we virtually launched our Africa office hosted by the African Development Bank in Abidjan, Côte d’Ivoire. Many African Heads of State and Government participated – they understand how vital accelerated adaptation action is because they are living with the impacts of climate change every day. Our rationale is that it doesn’t make sense to have an Africa office in isolation. We also have offices in Beijing and Dhaka because we think solutions that work well in South Asia, for example, could potentially also be translated to Africa and vice versa.

Do you target regions and different segments of the population in Africa? How do you determine and direct the activities of the GCA-Africa?

If we fail to include fairness and equity in how we adapt to a warming planet, we risk pushing millions of more people into poverty. We know how that story ends – with more conflict, migration and instability. With that in mind, we work closely with our partners including the African Adaptation Initiative and the African Development Bank to ensure our activities are directed towards where the need is greatest. Partnering with existing networks, platforms and organizations ensure that we don’t duplicate existing resources but can play a role in effectively filling the gaps that exist.

Right now, global, regional, national, subnational and local entities are working simultaneously, and in parallel to support adaptation actions and many important initiatives exist. However, the speed and scale of adaptation action is grossly insufficient to meet the demand and many stakeholders are not connected to the resources, knowledge, expertise or support others can offer them.

GCA is key to bridging this gap while ensuring at the same time that best practices can be replicated and scaled up in order to catalyse progress towards resilience in the most effective and efficient way.

Africa’s development – be it in infrastructure, agricultural production, urban development, and youth empowerment – can have a different path from other regions. Africa can have a development that is based on a deep understanding of climate risks for planning, resilient approaches with nature and people at the centre, and continuous innovations in technology, financing, and governance for a climate-smart-adapted future.

What are the long-term priority objectives here? But in the short-term, what projects would you tackle in Africa?

The short-term objective, in terms of the programs, is to make sure that when COVID-19 support packages are developed — and they are being developed in real-time by the IMF [International Monetary Fund] and other partners — they have resilience or adaptation action embedded in them.

Current estimates of the cost of climate change to Africa are between $7 – $15 billion per year. African countries are projected to experience clear detrimental macroeconomic consequences from climate change over the coming decades. The IMF estimates that this cost could rise to $50 billion by 2040, about 3% of the continent’s GDP. It is estimated that climate change could result in lower GDP per capita growth ranging, on average, from 10 to 13 per cent, with the poorest countries in Africa displaying the highest adaptation deficit. So, it’s important we act, and we act now.

Let me give an example. As part of the recovery package in Africa and other continents, there is a lot of investment in infrastructure. We want to make sure that these investments have climate risk embedded in their design and hence in their implementation and maintenance. We don’t want to build infrastructure anymore which will be destroyed when the next floods come.

For us, there is a very simple business case, over and above a moral argument, that investing in adaptation is good economics. We think that it is absolutely vital that, in the development of these new infrastructure projects or agriculture projects, that the climate lens is being applied consistently, and that is what we are planning to do in Africa long-term.

We are developing tools, guidelines, methodologies, and innovation programs for governments and development partners to do precisely that. You cannot develop properly without taking climate into consideration. There is this integrated approach that is not always applied, not only in Africa but also across the globe. That is what we are working on.

Since the start of this initiative, what would you consider as your main achievements on the continent? How did you overcome the initial challenges in order to get these positive results?

The urgency of the compounded COVID-19 and climate crises is compelling a new and expanded effort to accelerate momentum on Africa’s adaptation efforts.

At the GCA, we are joining forces with the African Development Bank to use their complementary expertise, resources and networks to develop and implement a new bold Africa Adaptation Acceleration Program (AAAP) to galvanize climate-resilient actions through a triple win approach to address COVID-19, climate change, and the economy.

The AAAP will contribute to closing Africa’s adaptation gap, support African countries to make a transformational shift in their development pathways by putting climate adaptation and resilience at the centre of their critical growth-oriented and inclusive policies, programs, and institutions.

As part of this program, just a couple of weeks ago, at the inaugural Climate Adaptation Summit, hosted by the Netherlands, we announced a new program to deploy billions of dollars to help young people in Africa build a new digitally-driven model of agriculture that can feed the continent’s people and boost prosperity even as the planet heats up.

The African Development Bank has already committed to putting half its climate finance towards the initiative – $12.5 billion between now and 2025.

The challenge now is to raise an equal amount from donor governments, the private sector and international climate funds. In the COVID-context this is challenging – our latest report “State and Trends in Adaptation” showed that investment in climate adaptation fell in 2020 even as more than 50 million people were affected by a record number of floods, droughts, wildfires and storms.

The pandemic is eroding recent progress in building climate resilience, leaving countries and communities more vulnerable to future shocks. I think awareness is really starting to increase that we can either delay climate action and pay for that choice or plan now and prosper. The returns in investing in building climate adaptation and resilience are much greater than the investment – investing $1.8 trillion globally in the next decade could generate $7.1 trillion in total net benefits.

We are also working to strengthen ecosystems that support youth-led climate adaptation entrepreneurship, and youth participation in adaptation policies; scale up climate adaptation innovations by strengthening business development services to 10,000 youth-owned enterprises and 10,000 youth with business ideas on jobs and adaptation; develop tailored skills and provide starting tool packs for one million youth to prepare them for climate-resilient jobs and entrepreneurial opportunities in adaptation and unlock $3 billion in credit for adaptation action by innovative youth-owned enterprises through innovative financial instruments.

With all these on the agenda, what role do African leaders have to play in terms of the global adaptation agenda?

With climate-related disasters expected to slow GDP per capita growth, African Governments are likely to experience increasing pressure on budgets and fiscal balances. Climate extremes are already leading to increased government expenditure, a reduction in the volume of collected taxes, ultimately resulting in an increase in government debt and impairment of investments. Adaptation and investment in climate resilience remain high development and investment priorities for Africa if the continent is to attain the SDGs.

In their Nationally Determined Contributions, African countries have already identified key areas where investments in adaptation and resilience building could yield high dividends. These include agriculture and forestry, water resources, disaster risk reduction, biodiversity and ecosystems, and human settlement. Many African countries are also in the process of preparing and finalizing their National Adaptation Plans.

Having said that, climate change is an all of social problem, no one can solve it alone. The role of African leaders is crucial to mobilise governments to boost climate action on both mitigation and adaptation. They need to improve their ability to incorporate climate risks into planning and financing major infrastructure, agriculture and other resilience-related investments.

With the youngest population in the world, Africa needs to find ways to unlock the power of its youth for adaptation – something we are very focused on at the GCA. Having said all of that, there are already a lot of good adaptation initiatives happening on the continent and many other countries in different regions are going to be able to learn from what Africa is doing.

Besides this, what specifically are the expectations from the leaders, looking at the fact that policies and approaches are different in African countries?

Earlier this year, we published a GCA policy brief, with the African Adaptation Initiative which recommended focusing stimulus investment in Africa on resilient infrastructure and food security to overcome the COVID-climate crisis. This was endorsed by 54 Heads of State and Government on the continent so when it comes to the need to accelerate adaptation action, it’s clear African countries are very much aligned. We are working hard on the ground to facilitate knowledge management and capacity building both within countries and between countries as well as promoting partnerships and co-operation at sub-regional and regional levels for increased synergy and scale. This cannot happen without the support of African leaders.

For example in Ghana, we are working to develop its first national-level assessment of the resilience of its infrastructure systems to climate change. By exploring and showcasing the potential co-benefits of nature-based solutions as part of a country-level package of investment in grey and green infrastructure, Ghana will function as a demonstration country of how to reduce costs and enhance ecosystems and we plan to roll out the initiative to other countries across the continent.

What platforms are there for discussing the GCA initiatives and programs for the African elite and the public? Do foreign organizations offer any support for these?

In January 2021, we hosted our first annual Ministerial Dialogue with over 50 ministers and leaders from international organizations including the newly appointed climate envoy John Kerry and Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva. The aim of this event is to help scale-up global leadership cooperation to accelerate climate adaptation.

Going forward, it will also serve as an annual high-level forum on climate change adaptation, acting as a lever for global leadership to drive a decade of transformation for a climate-resilient world by 2030. African leaders were very active in the dialogue and we look forward to hearing from them in our future sessions.

There are also other partnerships such as the Climate Commissions of the African Union and the African Climate Policy Center. The African Risk Capacity, a specialized agency of the African Union is making important progress enabling countries to manage climate risks and access rapid financing to respond to climate disasters. The African Union is leading the pan-African Great Green Wall initiative which involves many international organizations and foreign governments.

But climate adaptation will not be successful if it just comes from the top-down. The design of adaptation actions must include and be led by local communities who are best placed to understand needs. Solutions need to be context relevant and accompanied by soft support designed to enhance uptakes such as formal education initiatives, agricultural extension or behavioural change campaigns.

Do you suggest governments have to act now to accelerate issues that you have on the agenda for the next few years? What kind of support do you envisage from African governments?

Over half of Africa’s total population experiences food insecurity. The growing number of extreme climate events, from droughts and new crop diseases to floods and unpredictable growing seasons, continue to threaten Africa’s ability to feed itself.

There are increasing rainfall and malaria risks in East Africa, increasing water stress and decreasing agricultural growing periods North Africa, severe flood risks in coastal settlements in West Africa and increased food insecurity, malaria risks and water stress in Southern Africa. The effect of aggregated climate impacts could decrease the continent’s GDP by 30 per cent by 2050.

Suffice to say Africa really doesn’t a moment to lose and we need to accelerate climate adaptation now. In looking towards recovery from the pandemic, we have a unique opportunity to ensure that we all build forward better. It is our responsibility to ensure that the opportunity isn’t wasted and countries around the world must support Africa in this.

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Brent’s Jump Collides with CBN Easing, Exposes Policy-lag Arbitrage

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CBN’s $1trn Mirage

Nigeria is entering a timing-sensitive macro set-up as the oil complex reprices disruption risk and the US dollar firms. Brent moved violently this week, settling at $77.74 on 02 March, up 6.68% on the day, after trading as high as $82.37 before settling around $78.07 on 3 March. For Nigeria, the immediate hook is the overlap with domestic policy: the Central Bank of Nigeria (CBN) has just cut its Monetary Policy Rate (MPR) by 50 basis points to 26.50%, whilst headline inflation is still 15.10% year on year in January.

“Investors often talk about Nigeria as an oil story, but the market response is frequently a timing story,” said David Barrett, Chief Executive Officer, EBC Financial Group (UK) Ltd. “When the pass-through clock runs ahead of the policy clock, inflation risk, and United States Dollar (USD) demand can show up before any oil benefit is felt in day-to-day liquidity.”

Policy and Pricing Regime Shift: One Shock, Different Clocks

EBC Financial Group (“EBC”) frames Nigeria’s current set-up as “policy-lag arbitrage”: the same external energy shock can hit domestic costs, FX liquidity, and monetary transmission on different timelines. A risk premium that begins in crude can quickly show up in delivered costs through freight and insurance, and EBC notes that downstream pressure has been visible in refined markets, with jet fuel and diesel cash premiums hitting multi-year highs.

Market Impact: Oil Support is Conditional, Pass-through is Not

EBC points out that higher crude is not automatically supportive of the naira in the short run because “oil buffer” depends on how quickly external receipts translate into market-clearing USD liquidity. Recent price action illustrates the sensitivity: the naira was quoted at 1,344 per dollar on the official market on 19 February, compared with 1,357 a week earlier, whilst street trading was cited around 1,385.

At the same time, Nigeria’s inflation channel can move quickly even during disinflation: headline inflation eased to 15.10% in January from 15.15% in December, and food inflation slowed to 8.89% from 10.84%, but energy-led transport and logistics costs can reintroduce pressure if the risk premium persists. EBC also points to a broader Nigeria-specific reality: the economy grew 4.07% year on year in 4Q25, with the oil sector expanding 6.79% and non-oil 3.99%, whilst average daily oil production slipped to 1.58 million bpd from 1.64 million bpd in 3Q25. That mix supports external-balance potential, but it also underscores why the domestic liquidity benefit can arrive with a lag.

Nigeria’s Buffer Looks Stronger, but It Does Not Eliminate Sequencing Risk

EBC sees that near-term external resilience is improving. The CBN Governor said gross external reserves rose to USD 50.45 billion as of 16 February 2026, equivalent to 9.68 months of import cover for goods and services. Even so, EBC views the market’s focus as pragmatic: in a risk-off tape, investors tend to price the order of transmission, not the eventual balance-of-payments benefit.

In the near term, EBC expects attention to rotate to scheduled energy and policy signposts that can confirm whether the current repricing is a short, violent adjustment or a more durable regime shift, including the U.S. Energy Information Administration (EIA) Short-Term Energy Outlook (10 March 2026), OPEC’s Monthly Oil Market Report (11 March 2026), and the U.S. Federal Reserve meeting (17 to 18 March 2026). On the domestic calendar, the CBN’s published schedule points to the next Monetary Policy Committee meeting on 19 to 20 May 2026.

Risk Frame: The Market Prices the Lag, Not the Headline

EBC cautions that outcomes are asymmetric. A rapid de-escalation could compress the crude risk premium quickly, but once freight, insurance, and hedging behaviour adjust, second-round effects can linger through inflation uncertainty and a more persistent USD bid.

“Oil can act as a shock absorber for Nigeria, but only when the liquidity channel is working,” Barrett added. “If USD conditions tighten first and domestic pass-through accelerates, the market prices the lag, not the headline oil price.”

Brent remains an anchor instrument for tracking this timing risk because it links energy-led inflation expectations, USD liquidity, and emerging-market risk appetite in one market. EBC Commodities offering provides access to Brent Crude Spot (XBRUSD) via its trading platform for following energy-driven macro volatility through a single instrument.

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Gen Alpha: Africa’s Digital Architects, Not Your Target Audience

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Emma Kendrick Cox

By Emma Kendrick Cox

This year, the eldest Gen Alpha turns 16.

That means they aren’t just the future of our work anymore. They are officially calling for a seat at the table, and they’ve brought their own chairs. And if you’re still calling this generation born between 2010 and 2025 the iPad generation, then I hate to break it to you, but you’re already obsolete. To the uninitiated, they look like a screen-addicted mystery. To those of us paying attention, they are the most sophisticated, commercially potent, and culturally fluent architects Africa has ever seen.

Why? Because Alphas were not born alongside the internet. They were born inside it. And by 2030, Africa will be home to one in every three Gen Alphas on the planet.

QWERTY the Dinosaur

We are witnessing the rise of a generation that writes via Siri and speech-to-text before they can even hold a pencil. With 63% of these kids navigating smartphones by age five, they don’t see a QWERTY keyboard as a tool. They see it as a speed bump, the long route, an inefficient use of their bandwidth. They don’t need to learn how to use tech because they were born with the ability to command their entire environment with a voice note or a swipe.

They are platform agnostic by instinct. They don’t see boundaries between devices. They’ll migrate from an Android phone to a Smart TV to an iPhone without breaking their stride. To them, the hardware is invisible…it’s the experience that matters.

They recognise brand identities long before they know the alphabet. I share a home with a peak Gen Alpha, age six and a half (don’t I dare forget that half). When she hears the ding-ding-ding-ding-ding of South Africa’s largest bank, Capitec’s POS machine, she calls it out instantly: “Mum! Someone just paid with Capitec!” It suddenly gives a whole new meaning to the theory of brand recall, in a case like this, extending it into a mental map of the financial world drawn long before Grade 2. 

And it ultimately lands on this: This generation doesn’t want to just view your brand from behind a glass screen. They want to touch it, hear it, inhabit it, and remix it. If they can’t live inside your world, you’re literally just static.

The Uno Reverse card

Unlike any generation we’ve seen to date, households from Lagos to Joburg and beyond now see Alphas hold the ultimate Uno Reverse card on purchasing power. With 80% of parents admitting their kids dictate what the family buys, these Alphas are the unofficial CTOs and Procurement Officers of the home:

  • The hardware veto: Parents pay the bill, but Alphas pick the ISP based on Roblox latency and YouTube 4K buffers.

  • The Urban/Rural bridge: In the cities, they’re barking orders at Alexa. In rural areas, they are the ones translating tech for their families and narrowing the digital divide from the inside out.

  • The death of passive: I’ll fall on my sword when I say that with this generation, the word consumer is dead. It implies they just sit there and take what you give them, when, on the contrary, it is the total opposite. Alphas are Architectural. They are not going to buy your product unless they can co-author the experience from end to end.

As this generation creeps closer and closer to our bullseye, the team here at Irvine Partners has stopped looking at Gen Alpha as a demographic and started seeing them as the new infrastructure of the African market. They are mega-precise, fast, and surgically informed.

Believe me when I say they’ve already moved into your industry and started knocking down the walls. The only question is: are you building something they actually want to live in, or are you just a FaceTime call they are about to decline?

Pay attention. Big moves are coming. The architects are here.

Emma Kendrick Cox is an Executive Creative Director at Irvine Partners

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Why Digital Trust Matters: Secure, Responsible AI for African SMEs?

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Kehinde Ogundare 2025

By Kehinde Ogundare

For years, security for SMEs across sub-Saharan Africa meant metal grilles and alarm systems. Today, the most significant risks are invisible and growing faster than most businesses realise.

Artificial Intelligence has quietly embedded itself into everyday operations. The chatbot responding to customers at midnight, the system forecasting inventory requirements, and the software identifying unusual transactions are no longer experimental technologies. They are becoming standard features of modern business tools.

Last month’s observance of Safer Internet Day on February 10, themed ‘Smart tech, safe choices’, marked a pivotal moment. As AI adoption accelerates, the conversation must shift from whether businesses should use AI to how they deploy it responsibly. For SMEs across Africa, digital trust is no longer a technical consideration. It is a strategic business imperative.

The evolving threat landscape

Cybersecurity threats facing sub-Saharan African SMEs have moved well beyond basic phishing emails. Globally, cybercrime costs are projected to reach $10.5 trillion this year, fuelled by generative AI and increasingly sophisticated social engineering techniques. Ransomware attacks now paralyse entire operations, while other threats quietly extract sensitive customer data over extended periods.

The regional impact is equally significant. More than 70% of South African SMEs report experiencing at least one attempted cyberattack, and Nigeria faces an average of 3,759 cyberattacks per week on its businesses. Kenya recorded 2.54 billion cyber threat incidents in the first quarter of 2025 alone, whilst Africa loses approximately 10% of its GDP to cyberattacks annually.

The hidden risk of fragmentation

A common but often overlooked vulnerability lies in digital fragmentation.

In the early stages of growth, SMEs understandably prioritise affordability and agility. Over time, this can result in a patchwork of disconnected applications, each with separate logins, security standards, and privacy policies. What begins as flexibility can involve operational complexity.

According to IBM Security’s Cost of a Data Breach Report, companies with highly fragmented security environments experienced average breach costs of $4.88 million in 2024.

Fragmented systems create blind spots; each additional data transfer between applications increases exposure. Inconsistent security protocols make governance harder to enforce. Limited visibility reduces the ability to detect anomalies early. In practical terms, complexity increases risk.

Privacy-first AI as a competitive differentiator

As AI capabilities become embedded in business software, SMEs face a choice about how they approach these powerful tools. The risks are not merely theoretical.

Consumers across Africa are becoming more aware of data rights and are willing to walk away from businesses that cannot demonstrate trustworthiness. According to KPMG’s Trust in AI report, approximately 70% of adults do not trust companies to use AI responsibly, and 81% expect misuse. Meanwhile, studies also show that 71% of consumers would stop doing business with a company that mishandles information.

Trust, once lost, is difficult to rebuild. In the digital age, a single data leak can destroy a reputation that took ten years to build. When customers share their payment details or purchase history, they extend trust. How you handle that trust, particularly when AI processes their data, determines whether they return or take their business elsewhere.

Privacy-first, responsible AI design means building intelligence into business systems with data protection, transparency and ethical use embedded from the outset. It involves collecting only necessary information, storing it securely, being transparent about how AI makes decisions, and ensuring algorithms work without compromising customer privacy. For SMEs, this might mean choosing inventory software where predictive AI runs on your own data without sending it externally, or customer service platforms that analyse patterns without exposing individual records. When AI is built responsibly into unified platforms, it becomes a competitive advantage: you gain operational efficiency whilst demonstrating that customer data is protected, not exploited.

Unified platforms and operational resilience

The solution lies in rethinking digital infrastructure. Rather than accumulating disparate tools, businesses need unified platforms that integrate core functions whilst maintaining consistent security protocols.

A unified approach means choosing cloud-based platforms where functions share common security standards, and data flows seamlessly. For a manufacturing SME, this means inventory management, order processing and financial reporting operate within a single security framework.

When everything operates cohesively, security gaps diminish, and the attack surface shrinks. And the benefits extend beyond risk reduction: employees spend less time on administrative friction, customer data stays consistent, and platforms enable secure collaboration without traditional infrastructure costs.

Safer Internet Day reminds us that the digital world requires active stewardship. For SMEs across the African continent who are navigating complex threats whilst harnessing AI’s potential, digital trust is foundational to sustainable growth. Security, privacy and responsible AI are essential characteristics of any technology infrastructure worth building upon. Businesses that embrace unified, privacy-first platforms will be more resilient against cyber threats and better positioned to earn and maintain trust. In a market where trust is currency, that advantage is everything.

Kehinde Ogundare is the Country Head for Zoho Nigeria

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