African development financial institutions and major banks including KCB, Equity, Ecobank, AfreximBank, Africa50, and the Africa Continental Free Trade Area (AfCFTA) Secretariat will mobilise up to $100 billion to accelerate the continent’s green industrialisation.
On Monday, September 8, President William Ruto witnessed the formal signing of the agreement in Addis Ababa, Ethiopia, during the Africa Climate Summit, marking a decisive shift from pledges to action.
“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,” Ruto said.
This move comes at a critical time, with Africa needing an estimated $3 trillion to meet its climate goals by 2030. Yet, the continent received only $30 billion between 2021 and 2022, according to a draft declaration from the Ethiopia summit.
The Africa Green Industrialisation Initiative (AGII), first introduced at COP28 and grounded in the 2023 Nairobi Declaration at the inaugural Africa Climate Summit, has now evolved into a practical action framework.
Key priorities under the initiative include scaling up industrial clusters powered by renewable energy, supporting emerging value chains in critical minerals, green fuels, and battery production, and harmonising cross-border policies to enhance intra-African trade through the AfCFTA.
“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,” said KCB Group CEO Paul Russo, voicing support for the shift to renewable-driven development.
Equity Bank CEO James Mwangi also pledged $1 billion from the bank’s recovery and resilience plan towards AGII-related projects.
Africa50, another key partner, is set to launch a flagship energy infrastructure project in Kenya—a $313 million public-private transmission line that will unlock renewable power for industrial use.
The broader aim is to harness Africa’s abundant renewable energy to develop climate-smart industries, modernise value chains, and generate millions of green jobs across the continent.
