Africa's Workforce at a Crossroads: Navigating Climate Change and the Green Transition

Zawya

11-04-2025

A side event at the Eleventh Session of the Africa Regional Forum on Sustainable Development (ARFSD) brought together policymakers, economists, and development experts to address the critical challenges and opportunities facing Africa's workforce in the context of climate change.
Organized by the UN Economic Commission for Africa (ECA) – Macroeconomic Policy, Finance and Governance Division, the event focused on the findings of the Economic Report on Africa 2023 and 2024, highlighting the urgent need for strategic interventions to ensure a just and sustainable transition for the continent's labour market.
In her presentation, Ms. Nadia Ouedraogo, Economic Affairs Officer, said that informal employment, which comprised 83% of all employment in Africa in 20024, is concentrated in agriculture, construction, and services. These sectors are highly susceptible to climate-induced stresses and seasonal shocks. Women and youth are particularly vulnerable to job losses and income reduction.
Ms. Zuzana Schwidrowski, Director of Macroeconomic Policy, Finance, and Governance Division, who moderated the session, stressed that climate change-induced shocks are reducing growth, depleting fiscal reserves and destabilizing financial systems while destroying lives and livelihoods. At the same time, this megatrend creates new opportunities for growth, innovation and structural transformation that Africa must seize.
Mr Sam Mugume Koojo, Assistant Commissioner in the Ministry of Finance, Planning and Economic Development of Uganda, urged policymakers, private sector leaders, and development partners to prioritize climate action and invest in a just and sustainable transition that creates decent jobs and promotes inclusive and sustainable growth. He emphasized the importance of co-creation, collaboration, and knowledge sharing to address the complex challenges facing Africa's workforce.
"The tangible effects of climate change – rising temperatures, extreme weather, and environmental degradation – are already destabilizing job security, forcing communities to relocate, and widening the gap between the rich and poor," said Mr Andrew Mundalo Allieu, Senior Economist, ILO Regional Office for Africa. He highlighted the global scale of this crisis, noting that 1.2 billion workers whose livelihoods depend on the natural environment are at risk. Specifically, heat stress, as documented by an ILO study, is causing a 2.3% loss in working hours, a figure projected to escalate to 14 million lost jobs by 2030.
Mr. Etienne Espagne, Senior Climate Economist at the World Bank and co-director of C3A, underscored that strategic regional coordination is vital to develop high-skill, climate-resilient employment. 'As climate change disrupts yields and redefines commodity value, aligning supply chains with regional strengths can reduce risk and boost shared prosperity. Although the costs of renewables are falling, uncertainty still poses challenges. Early investment and coordinated actions are essential to secure resilient and inclusive green jobs'.
For Ms. Olapeju Ibekwe, CEO of Sterling One Foundation, 'Public-private partnerships are vital to mobilizing investment and fostering innovation in green sectors, while gender-inclusive approaches are essential to ensure that women equitably benefit from the green transition through participation in decision-making and access to skills development."
Economic Losses and the Need to Transition to Greener Economies
Panelists stressed the cascading effects of climate change, noting that a 1% temperature increase could lead to a 2.2% GDP loss across Africa by 2030, with West Africa facing the most severe consequences. They also pointed out that climate change exacerbates conflicts and displacement, placing additional pressure on already fragile labour markets."
The transition to greener and more sustainable economies will result in job losses in fossil fuel industries, particularly in West and Central Africa. There's a risk of worsening inequality if targeted policies are not implemented to ensure equitable benefit distribution.
However, the transition to a green economy also presents significant opportunities for job creation, particularly in renewable energy, sustainable agriculture, and the carbon market. The carbon market alone could support up to 400 million jobs by 2050.
To ensure a just transition and mitigate climate change's adverse effects, panellists highlighted critical strategies, including: investing in reskilling and upskilling initiatives tailored for youth and informal sector workers; fostering innovative financing to support green projects; and strengthening social protection systems to provide vital safety nets for vulnerable communities.
Distributed by APO Group on behalf of United Nations Economic Commission for Africa (ECA).