On 23 January 2026 in Cape Town, South Africa, African policymakers, investors and development financiers confirmed plans for Africa’s Green Economy Summit, scheduled for 24–27 February, as governments across the continent confront a widening shortfall between climate policy commitments and the capital required to build power plants, water systems and resilient infrastructure. The summit comes at a time when Africa is securing only about 25 percent of the climate finance it needs annually, despite facing escalating climate risks and rising development pressures.
For more than a decade, African countries have produced climate strategies, energy transition plans and adaptation frameworks, many of them aligned with global agreements and donor expectations. What has proved far more difficult is converting these documents into projects that meet the risk and return thresholds of lenders and equity investors. High borrowing costs, currency volatility and regulatory uncertainty have narrowed the pool of capital willing to enter African green infrastructure, even as demand for electricity, transport and water services continues to grow.
This tension is visible across major African economies. South Africa has accelerated renewable energy procurement to stabilise a power system strained by years of underinvestment, yet grid congestion and delayed transmission upgrades are slowing new connections. Nigeria, home to the world’s largest population without reliable electricity, has seen rapid growth in off-grid solar, but many companies remain exposed to foreign exchange shocks as the naira weakens. In Kenya and Ethiopia, climate-resilient agriculture and water projects are widely recognised as economic priorities, but few reach financial close without heavy concessional support.
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Organisers of the Green Economy Summit argue that Africa’s climate challenge has entered a more technical phase, where the central question is no longer ambition but execution. The 2026 programme is designed around how projects are structured, priced and financed, reflecting a broader shift in global capital markets. As interest rates remain high and competition for investment intensifies, investors are demanding clearer revenue models, stronger governance and more predictable policy environments before committing funds.
Africa’s position in global climate finance remains marginal. Data from the Climate Policy Initiative shows that while global climate finance has increased in recent years, flows to Africa have not kept pace with need, particularly for adaptation and nature-based projects that do not generate immediate commercial returns. This imbalance has direct economic consequences. Climate-related shocks are already reducing agricultural output, damaging infrastructure and increasing public spending across the continent, compounding existing fiscal stress.
The summit’s agenda reflects these pressures. A central feature is an investment showcase presenting more than 50 African projects across renewable energy, battery storage, electric mobility, water infrastructure, waste management and climate-smart agriculture. The focus is on projects that have moved beyond concept stage, with defined capital requirements and risk mitigation strategies, in an effort to bridge the gap between developers and financiers.
The African Union’s role as host signals an attempt to address structural barriers that extend beyond individual countries. Fragmented regulation and small domestic markets raise transaction costs and deter long-term investment. Through the AU–Green Recovery Action Plan, which reaches the end of its first phase at the summit, policymakers are seeking to align national priorities with regional financing mechanisms capable of absorbing larger volumes of capital.
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Africa’s vulnerability to climate change is well documented, but its economic opportunity is often underestimated. The continent holds some of the world’s richest solar and wind resources and faces rapid urbanisation that will require massive investment in transport, housing and public services. Whether these investments are built in a low-carbon, resilient way will depend less on political declarations than on the ability to structure projects that can attract and retain capital under real market conditions.
By centring its 2026 edition on financing mechanics rather than aspirational targets, Africa’s Green Economy Summit reflects a more restrained and pragmatic phase in the continent’s sustainability debate. The outcome will matter beyond the conference halls of Cape Town. If Africa cannot close the gap between policy and finance, its green transition risks remaining largely theoretical. If it can, sustainability could become a central driver of economic growth rather than a parallel agenda.
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