. however energy consumption of liquid fuels comes at a cost. the carbon dioxide ( co2 ) pollution as a result of energy consumption in africa was approximately 3. 5 % of the global emission of co2, ( unep, 2003 ). growth in demand in the fishing sector has ultimately resulted in the threat of the sustainability of particular coastal and marine populations. to - date the per capita fish catch worldwide has remained static since 1972, however, this measure for southern africa has declined significantly ( unep 2003 ). globalisation has resulted in the specialisation of economies in areas in which they have a comparative advantage. the prevalence of cheaper labour costs has led african countries to primarily move towards the role of producing goods in labour intensive sectors such as agriculture and mining. the demand for cash crop exports from african countries by the developed world has equally soared. however the use of pesticides in cash crop production in order to maintain certain international standards has the potential to reduce soil quality due to toxic residue build up. future population growth, expansion in the agricultural sector, and general economic expansion in africa will see heightened competition for water resources among these sectors. competition for water resources between households, industry, and agriculture is expected to increase in future, as currently 25 % of the population is living in areas already facing severe water stress ( unep, 2003 ). although africa ’ s exports at the global level are very small at about 2 %, the concentration of the exports in the extraction sector is cause for concern on the environment. it means that the more africa is integrated into the global economy the more the consequences for extraction activities on the environment will become pronounced, unless mitigating measures are taken. in addition, multinational businesses are quickly realising the existence of less strenuous environmental standards in most of the african countries, which themselves are desperately seeking for foreign direct investment ( fdi ). as a result, these businesses are rushing to invest in these economies and realise profits but may never be available to attend to the possible redress of negative effects their business activities leave on the environment. in this respect, as african policy makers and other stakeholders pursue economic growth, it is important to appreciate the benefits presented by the natural ecosystems and diverse forms of wildlife and other species. despite the economic benefits of constructing roads, mining areas, and farming blocks, there exists a real threat of the destruction of large areas of natural habitats. the emergence of industries and the effect of urbanisation in africa, has largely contributed towards increased air pollution in

collaboration among all stakeholders. ▪ prospects in the medium to long - term are very positive. need to continue with the reform process can hardly be overemphasised. state of the local economy ( cont. ) status of debt service ▪ in quarter 1 of 2024 debt service was only to multilateral and plurilateral institutions. ▪ in the second quarter, there was a sharp upward jump following the conclusion of restructuring of the commercial ( eurobond holders ) as broader debt service resumed ( see chart below ). liquidity risk secondly, the industry ’ s concerns on liquidity risk is noted. however, it is important to fully appreciate the context that informed boz actions. ▪ the environment has for sometime now been characterized by strong underlying inflationary pressures, stemming not only from the debilitating drought shock of 2023 / 24 agricultural season, but also the persistent exchange depreciation. ▪ managing such pressures points to the need to implement relatively tight monetary policy to contain the inflationary pressures. ▪ we are the first to admit that the policy rate, on its own, is not sufficient to manage exchange rate pressures. the bank has had to complement the policy rate changes with upward adjustments in the statutory reserve ratio. in this regard, in early february 2024 we raised the srr to 26 % from 17 % on 5 february 2024. ▪ at the same same time it was deemed necessary that the government transfers its unutilised deposits from commercial banks to the boz. thus, on 29 january 2024, commercial banks were instructed to transfer such deposits to boz. ▪ the increased statutory reserve ratio resulted in a net withdrawal of k8. 1 billion of excess liquidity. with respect to government deposit transfers, between endjanuary 2024 and july 2024 k3. 4 billion had been transferred to boz — far much less than the projected k12 billion. liquidity risk ( cont. ) ▪ the less - than - satisfactory performance of the government deposit transfers meant that the impact was not fully achieved. with this development another way of achieving the intended objective had to be found. the bank turned to making overnight lending facility ( olf ) as the main source of commercial banks ’ liquidity as opposed to use of regular open market operations ( omo ). ▪ upon observing relative stability in the foreign exchange market conditions since june 2024, the bank started to provide commercial banks liquidity relief through the much cheaper omo facility compared with the olf