ADDIS ABABA, Ethiopia – Leading banks and African development finance organisations have pledged to raise Sh13 trillion ($100 billion) to support the green industrialisation of the continent.
At the second Africa Climate Summit, President William Ruto witnessed the historic deal being signed in Addis Ababa, Ethiopia, signalling a clear move from promises to action.
The agreement unites the Africa Continental Free Trade Area (AfCFTA) Secretariat with financial institutions from Africa, such as AfreximBank, Africa50, KCB Group, Equity Group, Stanbic Bank Kenya, and Ecobank.
Together, they will use Africa’s endowment in renewable energy to modernise value chains, develop climate-smart industries, and generate millions of jobs.
Originally introduced at COP28 and based on the 2023 Nairobi Declaration at the first Africa Climate Summit, the Africa Green Industrialisation Initiative (AGII) has now evolved into a tangible framework for action.
Scaling up industrial clusters driven by renewable energy, assisting emerging value chains in the production of batteries, green fuels, and essential minerals, and coordinating cross-border policies to increase intra-African trade under the AfCFTA are some of its top aims.
Why African financial institutions are prioritising green growth
Speaking at the signing ceremony on Monday, President Ruto hailed the breakthrough as proof of Africa’s determination to claim its rightful place in the global economy.
“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,” he said.
Industry leaders echoed the President’s remarks. KCB Group CEO Paul Russo pledged support for renewable-driven growth.
“As a sustainable institution, we have prioritised green growth and deliberately focused on accelerating renewable energy-based industrialisation, as envisioned by the AGII cooperation framework,” he said.
James Mwangi of Equity Bank allocated Sh129 billion ($1 billion) from the recovery and resilience plan to AGII initiatives.
Which role will Kenya play in Africa’s green transition
Africa50 launched a Sh40 billion ($313 million) public-private transmission line in Kenya, a showpiece energy infrastructure project that will enable industries to use renewable energy.
The framework supports the Nairobi-based Accelerated Partnership for Renewables in Africa (APRA), which has set a 2030 target of producing 300 GW of renewable energy.
Together, AGII and APRA present Africa as a centre for production, innovation, and sustainable trade in addition to being a provider of raw materials.
Kenya will play a key role in guiding Africa’s green transition as the host nation for the AGII and APRA secretariats.
Beyond just cash mobilisation, the Addis Ababa deal represents Africa’s leadership, self-determination, and transformation of climate ambition into continental opportunity.
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