African Banks Face $218 Billion of Climate Change Risk
- Transport, oil and gas vulnerable to shift from fossil fuels
- Banks should be transparent in reporting environmental risks
Photographer: Christopher Furlong/Getty Images
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African banks are vulnerable to the increasing frequency and severity of climate change shocks unless lenders take action to manage these risks, Moody’s Investors Service said in a report.
Moody’s estimates that the 49 banks it rates across 14 African countries have extended almost $218 billion in credit to environmentally sensitive sectors, an amount equivalent to nearly 29% of their total loans, Moody’s analysts including Malika Takhtayeva and Peter Mushangwe wrote.