Africa secures Sh12 trillion to fast-track green industrialisation
Through this alliance, Africa’s renewable energy will be channelled into creating modern industrial hubs, diversifying value chains, and generating employment opportunities for millions.
African banks and development financiers have unveiled a Sh12 trillion ($100 billion) plan to accelerate green industrialisation across the continent, marking one of the most ambitious efforts to build climate-resilient industries and jobs.
The deal was sealed in Addis Ababa, Ethiopia on Monday during the Africa Climate Summit in the presence of President William Ruto.
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The agreement pools the resources of AfreximBank, Africa50, KCB Group, Equity Group, Stanbic Bank Kenya, and Ecobank, working alongside the Africa Continental Free Trade Area (AfCFTA) Secretariat.
Through this alliance, Africa’s renewable energy will be channelled into creating modern industrial hubs, diversifying value chains, and generating employment opportunities for millions.
The Africa Green Industrialisation Initiative (AGII), which was introduced at COP28 and anchored in the Nairobi Declaration of 2023, has now shifted from vision to execution.
Key areas of focus include expanding clean energy-powered industrial parks, building new value chains around critical minerals, green fuels and battery technologies, and harmonising trade rules to advance intra-African commerce under AfCFTA.
President Ruto, who attended the signing, described the agreement as a milestone for the continent’s economic agenda.
“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 players echoed his remarks with KCB Group CEO Paul Russo affirming the bank’s commitment to green development.
“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.
Equity Bank’s James Mwangi confirmed that $1 billion (Sh129.5 billion) from its recovery and resilience fund will be directed towards projects under the initiative.
At the same time, Africa50 revealed a landmark investment in Kenya, a $313 million (Sh40.5 billion) public-private transmission line to open up renewable power for industries.
The framework is aligned with the Accelerated Partnership for Renewables in Africa (APRA), headquartered in Nairobi, which targets delivery of 300 GW of renewable capacity by 2030.
Together, AGII and APRA are designed to reposition Africa from being a supplier of raw materials to becoming a centre of innovation, clean manufacturing, and sustainable trade.
With the secretariats of both AGII and APRA based in Kenya, the country is expected to take a leadership role in driving Africa’s transition to green growth.
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