The Association of African Central Banks opened on 15 May 2023 in Yaounde, a three-day continental seminar on the theme “Impact of climate change on food security and inflation in Africa: the role of the financial sector in financing agriculture and the green economy”.
“The sensitivity of food production to climatic conditions creates a strong dependence of African countries on imports, which leads to their high exposure to imported inflation,” says Abca, which maintains that in such a context, central banks and the financial sector in general have a role to play. In particular, there is a role for central banks and the financial sector in general to play in increasing financing for agriculture, while remaining respectful of environmental standards.
In order to meet this challenge, the central bankers meeting in the Cameroonian capital until 17 May 2023 will work on “identifying the main climate shocks in Africa and the new challenges linked to these events that constitute a threat to food security; taking stock of food insecurity and inflation, while highlighting the main factors that cause them; contributing to a better understanding of the role of central banks in stabilising prices, and then the role of the financial system in a context marked by climate change.
With about 40 members to date, the Association is a framework for dialogue on monetary and financial issues. Among other objectives, the association aims to “promote monetary, banking and financial cooperation in Africa; contribute to the strengthening of efforts aimed at establishing and maintaining price and financial stability in Africa; envisage, at the end of a convergence process, the advent of a single currency and an African central bank…”.