Exploring the Nexus Between Climate Variability, Finance, and Gender Inequality in Sub-Saharan Africa

Abstract

The main purpose of the study was to examine the relationship between climate finance, rainfall variability, and gender inequality in 46 Sub-Saharan African countries. The study aimed to assess whether fluctuations in climate-related factors, particularly rainfall variability, exacerbate gender inequality, while also evaluating the role of climate finance in addressing gender disparities in the region. To analyze the data, the researchers used the system generalized method of moments (GMM) approach, which is particularly useful for addressing the endogeneity problem that often arises in models with complex relationships between variables. This approach allows for more accurate estimation of the impacts of climate finance and rainfall variability on gender inequality. The study also conducted sensitivity tests to assess the robustness of the findings, using panel quantile regression. This method provides a more detailed understanding of the relationship by examining how the impacts of climate finance and rainfall variability vary across different points of the gender inequality distribution. The findings from the analysis indicated that countries in Sub-Saharan Africa experiencing high rainfall variability tend to face worsening gender inequality in both the short-run and long-run. This suggests that increased climate variability, particularly in terms of changing rainfall patterns, has a negative impact on gender equality, likely due to the disproportionate vulnerability of women to the effects of climate change. Women in many parts of Sub-Saharan Africa are often more reliant on agriculture, which is highly sensitive to rainfall changes, and they are also more likely to bear the burden of adapting to environmental stresses. On the other hand, the study found that climate finance had a significant positive effect on gender equality in Sub-Saharan Africa. Both in the short-run and long-run, climate finance was shown to strengthen gender equality in the region. This finding suggests that financial support aimed at mitigating and adapting to climate change is not only helping countries cope with the adverse impacts of climate change but also contributing to reducing gender disparities. Climate finance targeted at developing countries appears to provide opportunities for women to improve their economic and social standing, particularly in sectors like agriculture, education, and health, which are heavily influenced by climate change. The study underscores the importance of integrating gender considerations into climate finance strategies. It suggests that climate finance can be a key tool in addressing both the challenges posed by climate change and the persistent gender inequality in Sub-Saharan Africa. By supporting projects that focus on both climate resilience and gender equality, climate finance can play a dual role in fostering sustainable development that benefits all segments of society, particularly women.