• Although Central and East Africa demonstrated substantial rates of forest cover change, the local hotspot was limited to Southern Africa. • Grants were consistent in modifying cropland, whereas IMF loans had significant effects on forest land cover change. • Forest cover loss, IBRD loans and credit led to severe biodiversity loss, but grants had a beneficial effect. According to most globalisation and econometric studies, the high inflow of external financial inflows (foreign direct investments FDI, International Bank for Reconstruction and Development IBRD loans, remittances RM, International Monetary Fund IMF loans, and technical assistance TA) has a positive impact on Africa’s socioeconomic progress. However, on EFI’s impact on the environment, these studies have produced opposing viewpoints: a pollution haven (negative), Porter (positive), and halo (neutral) effect. Possible reasons are that they focus on one or a few EFI variables while proxying the environment as pollution or carbon emissions, which prevents country/regional-level and ecological analysis. To settle the contradictory viewpoints, this study employs a spatial and environmental approach based on telecoupling theory and a multiscale spatial weighted regression technique to assess the EFI and environment nexus in Africa. Data on forest cover, farmland, and species distribution were acquired from the World Bank and IUCN databases for 55 African countries. Results showed that all three contrasting viewpoints of EFI’s impact on the environment were prevalent but differed by type of EFI and spatial scale. TA and Grants enhance the protection of threatened species and forest cover; FDI and RM have neither a positive nor a negative impact. On the contrary, IBRD generated negative impacts across all nations, with higher impacts in Eastern African countries and less in Northern and Southern Africa. The study recommends that international environmental agencies and African countries should work with the IBRD to develop nature-based loans/finance with strong biodiversity conservation tenets
Adams Osman (Sun,) studied this question.