New models for climate finance can boost sustainability in Africa

New finance mechanisms, such as green, blue, and wildlife bonds, as well as biodiversity credits, can help convert Africa‘s climate vulnerabilities into economic opportunity, the Africa’s Green Economy Summit (AGES) has heard.

The Summit, which concluded in Cape Town last week, brought together more than 600 delegates from 42 countries, including global investors, project developers and policymakers.

Financing the transition

Financial solutions and policy innovation were seen as key to driving Africa’s environmental transition, with Carl Roothman, CEO of Sanlam Investment Group, stressing the urgency of scale.

“Africa needs billions of dollars,” he commented. “It’s great to dream, but we must act and at scale.”

Iain Banner, co-founder of Go Green Africa and AGES, framed the sustainable transition as fundamental to the continent’s future economy, adding “The green and blue economies are the new operating systems of the modern world.”

Other discussions focused on moving from policy to tangible outcomes, with South Africa’s Just Energy Transition Partnership (JETP) and renewable energy procurement programmes cited as examples of where policy goals can be translated in investment opportunities.

“This is where the rubber hits the road,” commented Narend Singh, South Africa’s Deputy Minister of Forestry, Fisheries and Environment. “A low-hanging fruit is developing local value chains and beneficiating minerals here, creating jobs and advancing technology.”

‘Carpe digital’

Elsewhere, the integration of climate goals with digital transformation was a core theme, with Chrissy Meier of the Digital Impact Alliance noting that while most African cities have climate plans, they lack sufficient local data to enable implementation.

“Carpe digital,” she explained. “Seize the digital to make economies more efficient, inclusive, and greener.”

The Summit also addressed the challenge of presenting water management projects as an investment opportunity – “How do you convert water outcomes into bankable outputs?” asked World Resources Institute Africa’s Obadiah Mungai – and the need to strengthen food security through renewable energy.

The next AGES summit is scheduled to take place in Cape Town in March 2027. Read more here.