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Africa Shapes Its Green Future
Elias Kajumia: Head of Risk Management at the African Export-Import Bank
The Belem package—a set of financing and climate adaptation measures adopted at last year’s United Nations Climate Change Conference (COP30) in Brazil—was limited in scope. However, recognizing that the world can no longer design climate solutions for Africa without genuine African contributions, this package represents a profound shift in policymaking.
Although Africa is responsible for less than 4% of global greenhouse gas emissions, it bears the brunt of the climate crisis. As a result, the continent has recently moved from the margins of the dialogue on climate financing to the forefront. Most of the world now acknowledges that Africa’s pathway to net-zero emissions must enhance development rather than constrain it. Instead of repeating old patterns of dependency, African countries must transition to manufacturing and trade, growing while building a low-carbon future.
The inaugural report on Environmental, Social, and Governance (ESG) standards released by the African Export-Import Bank (Afreximbank) under COP30 reflects this shift. The report concludes that African institutions, rather than waiting for external solutions, are already taking necessary steps to support the continent’s economic development and climate ambitions.
To unlock massive climate financing, African multilateral institutions must act as a coordinating force to promote a shared continental vision. The Afreximbank report highlights a range of practical tools, such as the Climate Adaptation Financing Facility, which can help mobilize sustainable investments. Whether to support solar energy projects in Cameroon or provide stable power to Nigerian businesses, these tools demonstrate how decentralized clean energy can support Africa’s transition to manufacturing and economic competitiveness.
Similarly, facilities like the African Trade Transformation Fund can address the dual challenge facing the continent: heavy debt burdens and climate vulnerability. The innovative African Trade Credit Fund, in particular, is an example of the type of project-based tools that will be critical in scaling up investments in climate action.
Effective climate measures in Africa cannot be separated from economic sovereignty and trade. Localizing green value chains, establishing low-carbon manufacturing hubs, and investing in climate-resilient infrastructure are not merely climate initiatives; they are also essential state-building projects necessary for achieving a just transition.
The question now is whether the global financial system can adapt to this new reality. As Africa builds the institutions needed for a sustainable future, advanced economies must fulfill their commitments through full financing of the loss and damage fund, facilitating access to financing on favorable terms, and engaging with Africa not as a donor-recipient but as an equal trading partner.
Far from being an act of charity, supporting Africa’s green transition is the only viable path toward achieving global climate resilience and equitable growth. As clearly demonstrated by COP30, financial institutions on the continent are already moving toward clean energy on their own terms.
Africa’s economic transformation will depend on technology transfer and capacity building, both of which are essential to support projects funded by Afreximbank and its partners. Consider, for example, solar energy farms. Along with installing facilities, this ability to generate electricity becomes part of the future electricity grid, stimulates local component manufacturing, and aids in training a new generation of engineers.
The integrated Aba energy project in Nigeria illustrates this comprehensive approach. By providing stable and clean gas energy to small businesses, the project simultaneously addresses emissions issues, boosts productivity, and strengthens local value chains.
The multiplier effect arising from this strengthens the case for treating climate finance as developmental finance. This answers a crucial question raised by many participants at COP30: how can economies become climate-resilient while remaining competitive on the global stage? The answer lies in integrated projects that link environmental progress to economic strength.
Undoubtedly, some systemic barriers remain. Africa faces a staggering financing gap of $1.6 trillion to achieve the United Nations Sustainable Development Goals by 2030, underscoring the ongoing mismatch between the global financial system and the continent’s needs. The Belem package, acknowledging this imbalance, is a step in the right direction. However, correcting distorted risk perceptions and the resulting high credit spreads will be key in unlocking affordable private capital.
It is encouraging that African institutions are responding by developing tools to mitigate risks and blended finance models, including concessional financing windows and credit funds, to attract private capital. They are effectively building landing zones for global investment, directing it towards projects that enhance both climate and development goals.
All of this indicates that Africa is no longer willing to be defined by a crisis it did not create. Instead, the continent is striving for a fair green transition that drives manufacturing transformation, utilizes local energy resources, expands trade, and integrates markets. It creates one of the standout growth opportunities of the 21st century, laying the foundation for global climate resilience.
