A landmark pledge of $100 billion has been made by African financial institutions to support the continent’s transition toward green industrialization. The announcement was made this afternoon at the Africa Climate Summit 2, where leaders from across the region gathered to chart a pathway for climate-resilient economic growth.
The commitment, formalized through a cooperation agreement signed in the presence of President William Ruto, brings together some of the continent’s most influential financial players, including the African Export-Import Bank (AfreximBank), Africa50, Stanbic Bank Kenya, Equity Group Holdings, Kenya Commercial Bank Group (KCB), and Ecobank Transnational Inc. The African Continental Free Trade Area (AfCFTA) Secretariat also joined the partnership, underscoring the cross-border ambition of the initiative.
The new financing pledge has been aligned with the Africa Green Industrialisation Initiative (AGII), a framework launched at COP28 in Dubai and grounded in the 2023 Nairobi Declaration on Climate Change. The initiative prioritizes renewable energy-powered industrial clusters, the development of value chains in critical minerals and green fuels, and the creation of battery manufacturing capacity across the continent.
According to the signed framework, the $100 billion will be deployed to unlock large-scale industrial investments, modernize agricultural and manufacturing value chains, and accelerate job creation. Industrial growth is expected to be powered by Africa’s abundant renewable resources, from solar and wind to hydro and geothermal, positioning the continent as both a manufacturing hub and a global climate leader.
Read also: New report calls for bold action to avert food crisis in Africa
Africa is estimated to face an annual climate financing gap of between $200 and $250 billion. The $100 billion commitment, while not closing this gap entirely, represents one of the largest private sector-led climate finance mobilizations in Africa’s history. Analysts noted that the pledge sends a signal of growing confidence in the continent’s ability to leverage climate action as a driver of industrial and economic transformation.
“This is a historic step,” President Ruto declared during the signing ceremony. “In only a few months, we have moved from conversation to collaboration. United with our financial institutions, our energy systems, and our trade corridors, we can anchor inclusive and globally competitive green value chains.”
Financial institutions outlined their respective commitments during the summit. Equity Bank CEO James Mwangi pledged $1 billion from the bank’s resilience plan to AGII-related projects. KCB Group’s Paul Russo emphasized renewable-powered industrial growth as a priority for the bank’s climate strategy. Africa50 announced a $313 million investment in Kenya’s energy transmission infrastructure, a project aimed at expanding renewable power access to industrial zones.
These investments were described as critical in bridging the infrastructure and financing gap that has long stifled Africa’s industrialization agenda. By directing funds into climate-smart industries, African banks are expected to catalyze private capital inflows while reducing dependence on international concessional finance.
Read also: IATF 2025 highlights African entrepreneurs and SMEs driving innovation and growth
The initiative was presented as closely aligned with the Accelerated Partnership for Renewables in Africa (APRA), which is headquartered in Nairobi and aims to deliver 300 GW of renewable energy by 2030. Together, AGII and APRA form a continental blueprint for shifting industrial and energy systems toward low-carbon pathways.
Observers noted that integration with the AfCFTA framework will be vital for success, as industrial clusters powered by renewable energy will require harmonized policies, efficient trade corridors, and cross-border investment flows.
The pledge was framed not only as a financial commitment but also as a political signal that Africa is ready to define its own climate and industrial agenda. By mobilizing domestic resources at an unprecedented scale, African leaders and financiers demonstrated agency in addressing the dual challenge of climate change and economic development.
Analysts suggested that the initiative could reposition Africa within global value chains, particularly in critical sectors such as green hydrogen, electric mobility, and battery storage, where the continent possesses vast natural resource endowments. At the same time, emphasis was placed on ensuring that growth is inclusive, with attention to job creation, gender equity, and youth participation.
Despite the optimism, challenges remain. Experts pointed out that governance structures, regulatory consistency, and project implementation capacity will determine whether the $100 billion translates into tangible outcomes. Concerns were also raised about the risks of debt accumulation and the need for transparent monitoring of financial flows.
Nonetheless, the signing in Addis Ababa was widely described as a turning point. For the first time, African financial institutions, rather than external donors, have taken the lead in shaping the continent’s green industrial future.
Read also: Eastern Africa unveils first regional guide to scale Carbon Markets at ACS 2
