Nearly 600 million people across Africa still live without access to electricity, while close to one billion rely on traditional biofuels for cooking, a stark reality that underscores the continent’s unique climate change challenges. Despite contributing less than 5 percent of the world’s greenhouse gas emissions over the past 170 years, Africa remains one of the most vulnerable regions to the impacts of climate change. As the Second Africa Climate Summit approaches in Ethiopia this September, leaders, financiers, and civil society are rallying to push for a fairer global deal on phasing out fossil fuels and mobilising the enormous funds needed for a green transition.
According to The Conversation, renewable energy currently supplies just 24.1 percent of Africa’s electricity, with a hefty 76 percent of that coming from hydropower—a source increasingly threatened by climate extremes. Solar energy, despite Africa’s vast potential, accounts for only 3 percent of generation. The scale of the transition required is staggering: African countries collectively need between $1.6 trillion and $1.9 trillion by 2030 to move away from fossil fuels. Yet, much of the available climate finance comes as loans, not grants, leaving many nations in a cycle of debt that undermines their ability to invest in climate resilience and sustainable development. About 751 million Africans are negatively affected as governments divert funds to repay high-interest external debt instead of building climate-resilient futures.
Global initiatives, while well-intentioned, often fall short. The World Bank and African Development Bank’s Mission 300 project, for instance, aims to connect 300 million Africans to electricity by 2030 but will still leave another 300 million in the dark. Africa currently receives just 4 percent of global climate investment, a figure that remains woefully inadequate even as the 2023 COP28 climate conference pledged to triple global renewable energy investments. For this reason, African leaders argue, the continent needs its own summit to demand fair global responses—including meaningful emissions cuts from high-emitting developed countries and more equitable financing mechanisms.
The first Africa Climate Summit in 2023, as reported by The Conversation, issued the Nairobi Declaration, a landmark agreement that committed African nations to reduce their greenhouse gas emissions by 43 percent by 2030. The declaration also called for the overdue delivery of the world’s $100 billion annual climate finance pledge, advocated for a fair phase-down of unabated coal and fossil fuel subsidies, and pledged a fivefold increase in funding for new renewable energy systems. Other commitments included setting up green industries, climate-aligned trade, and financial system reform, with a focus on prioritising growth over austerity and promoting local currency financing. However, progress since the summit has been difficult to track, with no formal progress reports or measured outcomes, though initiatives like the Africa Green Industrialisation Initiative and the Continental Circular Economy Action Plan (2024-2034) have been launched to drive green jobs, empower youth and women, and position Africa as a global leader in climate-resilient growth.
The upcoming 2025 summit will tackle six key agenda items: reimagining climate finance and investment architecture; accelerating renewable energy and technological transformation; scaling nature-based and community-led solutions; strengthening strategic governance and global partnerships; harnessing critical minerals for green industrialisation; and advancing regional implementation mechanisms. These priorities reflect the complex web of challenges facing the continent. For example, Africa holds over 30 percent of the world’s critical mineral reserves—essential for clean energy technologies and net-zero transitions—yet ensuring these resources are mined responsibly and fairly remains a pressing concern.
Decentralised renewable energy systems are seen as a game-changer, particularly for rural communities. As The Conversation notes, these systems not only provide reliable power during climate extremes but also reduce emissions, create jobs, improve health outcomes, and support local enterprises. Indigenous knowledge systems, when combined with modern technologies, offer untapped potential for strengthening resilience, enhancing ecosystem stewardship, and supporting the emergence of green economies. Civil society organisations like the Pan African Climate Justice Alliance have played a crucial role by reaching out to local communities to ensure their voices and interests are represented in climate policymaking. Institutions such as the United Nations Economic Commission for Africa, the African Group of Negotiators, and the African Development Bank have also been instrumental in promoting a bottom-up, inclusive approach to climate action.
Against this backdrop, a major financial commitment was announced on August 16, 2025. The African Development Bank (AfDB) pledged $40 million to the Alliance for Green Infrastructure in Africa Project Development Fund (AGIA-PD), anchoring the Fund’s first close at $118 million, according to EnviroNews Nigeria. The package includes $20 million in grants, $10 million in commercial equity, and $10 million in junior equity from the Sustainable Energy Fund for Africa. AfDB Vice President Solomon Quaynor said the investment aims to de-risk early-stage projects and attract private sector capital, helping to accelerate Africa’s transition to a low-carbon, climate-resilient economy. "Through the $40 million package spanning grants, junior equity, and commercial equity, the AfDB is pioneering a comprehensive approach to unlock Africa’s vast green infrastructure potential. This investment is a bold declaration that the Bank stands ready to share early-stage risk alongside our partners, while mobilising billions in private-sector investment," Quaynor stated.
Other partners have joined the effort. Africa50 CEO Alain Ebobissé highlighted that AGIA’s first close marks a shift from ambition to execution since its launch at COP27. The UK’s Minister of State for Development, Jenny Chapman, emphasized Britain’s support for African-led solutions in vulnerable communities, including solar farms and water treatment plants, saying, "We are partnering with countries to unlock private investment in the places hardest hit by climate change. This will support solar farms, water treatment plants, and other projects that help build stronger, climate-resilient economies." Germany, through its development bank KfW, is contributing 26 million euros to spur investment, while the West African Development Bank (BOAD) reaffirmed its commitment to supporting Africa50 in implementing AGIA, aiming to close Africa’s infrastructure gap and foster private sector investment in innovative projects. AGIA’s goal is to raise $500 million to unlock a $10 billion pipeline of infrastructure projects across energy, sustainable transport, water, and ICT sectors.
Mark Gallogly, Co-founder of the Three Cairns Group, summed up the challenge: "The lack of bankable projects remains a persistent barrier to scaling clean energy and climate-resilient infrastructure. AGIA’s first close marks a significant milestone in tackling the challenge." Georgia Keohane, CEO of the Soros Economic Development Fund, described AGIA as a vital Africa-led initiative, saying, "The Soros Economic Development Fund is proud to support AGIA, a critically important partnership catalysing transformative projects that enhance climate resilience and drive inclusive, sustainable development."
Ultimately, the success of Africa’s climate ambitions will depend on the ability of its leaders to rally around a shared vision and to ensure that the continent’s needs and voices are not sidelined in the global climate conversation. With unity and strategic investment, Africa could well emerge as a global leader in climate action, setting an example of resilience, innovation, and inclusivity for the world.
