Climate Change Reshaping Africa’s Workforce: Experts Call for Urgent, Just Transition

KAMPALA– Policymakers, economists, and development experts gathered this week at a side event of the Eleventh Session of the Africa Regional Forum on Sustainable Development (ARFSD) to address the growing challenges and emerging opportunities for Africa’s labour market in the era of climate change.

Organized by the UN Economic Commission for Africa (UNECA) through its Macroeconomic Policy, Finance and Governance Division, the event spotlighted key findings from the Economic Report on Africa 2023 and 2024, emphasizing the urgent need for strategic interventions to ensure a just and sustainable transition for the continent’s workforce.

In her presentation, Ms. Nadia Ouedraogo, Economic Affairs Officer at ECA, highlighted that 83% of employment in Africa in 2024 was informal, with the majority of workers engaged in agriculture, construction, and services—sectors highly vulnerable to climate-induced stresses and seasonal shocks. She underscored the disproportionate risks faced by women and youth, who are most exposed to job and income losses.

Moderating the session, Ms. Zuzana Schwidrowski, Director of the Macroeconomic Policy, Finance and Governance Division, warned that climate shocks are not only diminishing growth and depleting fiscal reserves but also destabilizing financial systems. “While the impacts are devastating, climate change also presents opportunities for innovation, structural transformation, and sustainable growth that Africa must seize,” she said.

Mr. Sam Mugume Koojo (PhD), Assistant Commissioner at Uganda’s Ministry of Finance, Planning and Economic Development, called for enhanced collaboration among policymakers, private sector leaders, and development partners. “We must prioritize climate action and invest in a just transition that promotes decent jobs and inclusive growth,” he urged, emphasizing the need for co-creation and knowledge-sharing to address Africa’s complex workforce challenges.

Mr. Andrew Mundalo Allieu, Senior Economist at the ILO Regional Office for Africa, noted that 1.2 billion workers globally depend on the natural environment for their livelihoods and are at risk. Citing ILO research, he warned that heat stress is already reducing working hours by 2.3%, a figure projected to result in 14 million job losses by 2030.

Mr. Etienne Espagne, Senior Climate Economist at the World Bank and Co-director of C3A, highlighted the need for regional coordination to create high-skill, climate-resilient employment. “As climate change disrupts yields and alters commodity values, aligning supply chains with regional strengths will be crucial. Falling renewable energy costs are promising, but uncertainty remains. Early and coordinated investments are essential,” he said.

Ms. Olapeju Ibekwe, CEO of the Sterling One Foundation, emphasized the role of public-private partnerships in mobilizing green investments and driving innovation. She also stressed the importance of gender-inclusive approaches to ensure women benefit equally from the green transition through access to skills training and leadership roles.

Panelists warned of the economic fallout of inaction. A 1°C rise in temperature could reduce Africa’s GDP by 2.2% by 2030, with West Africa expected to be hit hardest. Climate change also exacerbates conflict and displacement, further straining already fragile labour markets.

While the transition to greener economies may lead to job losses—particularly in fossil fuel sectors across West and Central Africa—experts agreed that the shift presents major job creation opportunities. The carbon market alone could support up to 400 million jobs by 2050, alongside growth in renewable energy and sustainable agriculture.

To ensure a just transition, panelists proposed several key strategies:

• Investing in reskilling and upskilling, especially for youth and informal workers
• Innovative financing mechanisms for green projects
• Strengthened social protection systems to cushion vulnerable communities

The side event concluded with a call for bold, coordinated action to transform climate risks into sustainable employment opportunities and resilient economies across Africa.