When the first Africa Environment Outlook (AEO) report was presented to the African Ministerial Conference on Environment (AMCEN) in 2002 it was adopted by the Ministers as a tool for African policy makers to use in the assessment of the pressing environmental issues facing the region. UNEP, through its Division of Early Warning and Assessment (DEWA) and the Regional Office for Africa, continues to assist AMCEN with the regular production of the report. This booklet has been prepared as a complimentary product of the AEO and summarizes major environmental events and trends from July 2002 - May 2004, focusing on poverty and environment, freshwater, land, biodiversity, environmental emergencies and security, small islands developing states, climate and the major regional institutional developments in the area of environment. The objective is to keep these rapidly evolving issues in the focus of the decision makers in the region and stimulate timely action to address them.