New Africa Sustainable Development Report Shows Critical Importance of Scaled-Up Development Financing

New York, 16 July 2024 (ECA/UNDP/AfDB/AUC) - The United Nations Development Programme (UNDP), the United Nations Economic Commission for Africa (ECA), and the African Development Bank (AfDB), presented today the 2024 Africa Sustainable Development Report (ASDR), at an event held on the margins of the UN High-Level Political Forum for Sustainable Development in New York.

Scaled-up access to concessionary development financing, strengthened climate information and early warning systems, and economic reforms are amongst the key recommendations raised in the new ASDR, titled "Reinforcing the 2030 Agenda and Agenda 2063 and Eradicating Poverty in Times of Multiple Crises: The Effective Delivery of Sustainable, Resilient and Innovative Solutions."

The report provides an in-depth review of African countries progress towards five sustainable development goals and their 32 targets to meet the 2030 Agenda and the African Union 2063 Agenda. The five SDGs under review are: ending poverty (Goal 1); eliminating hunger (Goal 2); combating climate change (Goal 13); promoting peaceful societies (Goal 16) and strengthening global partnerships (Goal 17).

The research shows that Africa is on track to reach only less than three of the 32 targets assessed in this report (ASDR-2024) and that setbacks have been recorded for 8 of them, with slow progress or status quo registered for the remaining targets.

"Advanced economies have rebounded from COVID-19, but many countries in Africa struggle with high debt, double-digit inflation, and limited access to crucial development and climate funding. Disparities in the Human Development Index are widening between top-ranking nations and those at the bottom, highlighting significant challenges across Africa despite some progress in recent decades." said Claver Gatete, ECA Executive Secretary.

Indeed, Official Development Assistance (ODA) to Africa increased by two percent in 2023, but the total ODA remains at 0.37 percent of donors' combined Gross National Income, well below the 0.7 percent target agreed on by UN Member States. Given the short period remaining before the 2030 SDG deadline, most countries may fail to mobilize adequate resources to close their financing gap.

"African countries have made some significant progress in important areas, but we are running out of time," stressed Matthias Naab, UNDP Africa Deputy Regional Director a.i. "It is imperative we reinforce partnerships and look at innovative solutions to stop the current deceleration - and even reversal in some areas - and work more closely with African countries and people to get back on track towards our Global Goals and the Africa We Want. And this report is key, as it provides a path to this critical acceleration."

Africa has made strides in poverty reduction (goal 1), despite setbacks from crises like COVID-19, which increased poverty rates significantly, as in 2022, Africa accounted for more than half (54.8 percent) of people living in poverty worldwide. Efforts are underway to enhance social protection systems, which currently cover only 17.4 percent of the population, though still well below the global average. Access to drinking water has increased, on average, from 68.7 percent in 2015 to 72.9 percent, and basic sanitation services now reach 52% of the population, with ongoing efforts to meet global standards.

Efforts to combat hunger, undernourishment, and stunting (goal 2) in Africa are crucial. Despite challenges such as increased hunger affecting 281.6 million people in 2022, up by 11 million compared to 2021, initiatives are underway to address these issues and need urgent support. Measures include improving agricultural investment and aid to enhance food security.

Africa has demonstrated remarkable resilience and commitment to addressing climate change (goal 13), and efforts to enhance disaster risk reduction continue, though the number of countries having established national and local disaster risk reduction strategies remains at 29 out of 54 since 2015. Financing climate action in Africa is paramount but only $29.5 billion have been mobilized of the $2.8 trillion needed between 2020 and 2030 for African countries to implement their NDCs under the Paris Agreement.

"Financing remains a challenge for Africa. It needs between $118.2 billion and $145.5 billion per year to implement the continent's climate action commitments and Nationally Determined Contributions. This requires the development partners to scale up their support, including by strengthening the system of public development banks focusing on enhancing productive capacities, infrastructure, and human capital development, and for African countries to prioritize domestic resource mobilization through reforms such as digitizing tax administration systems, implementing progressive taxation, and leveraging digital payment platforms," explained Al Hamndou Dorsouma, Manager of the AfDB Climate Change and Green Growth Division.

In terms of governance (goal 16), some nations, such as Malawi, have taken significant measures to combat corruption, though it remains a significant challenge in many African countries, with stagnant progress and rising instances of bribery. Additionally, high illicit financial flows, totaling around $1.3 trillion in outflows and $1.1 trillion in inflows in 2020, continue to hinder the financing of key agendas, with Africa losing about $88.6 billion annually.

The ASDR also highlighted that key data gaps remain in many countries on the continent and recommends to policymakers and academics to include skills and capacity building in their priorities to be able to have a more accurate picture of the state of countries achievements and needs in terms of inclusive and sustainable development.

"This new report underscores African countries' commitment and progress, but it also highlights the challenges that remain for us to shape up 'The Africa We Want'. It stresses on the urgent need to accelerate sustainable development actions and the imperative for African countries to step up their efforts and empower communities for a more inclusive growth. But it also shows clearly how innovative financing and strengthened partnerships are key for countries to be able to redouble their efforts," said Monique Nsanzabaganwa, Deputy Chairperson of the African Union.

To access all findings and read the full set of recommendations, please consult the 2024 Africa Sustainable Development Report: https://repository.uneca.org/handle/10855/50186

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For further information or potential interviews, please contact:

Eve Sabbagh, UNDP Africa Strategic Communications Specialist, New York, [email protected]

Sophia Denekew, ECA Media Relations, [email protected]

Amba Mpoke-Bigg; AfDB Communications and External Relations Department, [email protected]

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