ADDIS ABABA – Next month, heads of state and government, climate scientists, private-sector leaders, civil-society and youth representatives, and global development partners will convene in Addis Ababa, Ethiopia’s vibrant capital and the seat of the African Union, for the Second Africa Climate Summit (ACS2). This is not a symbolic gathering. It is a declaration of intent by Africa, an opportunity to unleash a wave of high-return investment, and a potential turning point in how the world confronts the climate crisis.
Africa is on the frontline of a socially and economically corrosive global environmental catastrophe. Droughts and floods are disrupting agriculture and displacing millions of people across the continent. According to the African Development Bank, climate change is reducing Africa’s GDP growth by 5-15% each year – losses that mean millions fewer jobs and less investment in critical infrastructure.
But while Africa is a poster child for climate vulnerability, it is also a model of climate possibility, boasting vast renewable resources, rich biodiversity, rapidly growing economies, and a young, innovative population. But Africa’s green potential remains largely untapped. For example, though the continent possesses 60% of the world’s best solar resources, it currently accounts for only 1% of global installed solar capacity – and only 3% of global energy investment.
This represents a major missed opportunity, not least for investors. Whereas the industrialized countries are attempting to retrofit economies based on voracious fossil-fuel consumption, Africa can build resilient, sustainable economies from the ground up. This lowers the risk profile of green investment on the continent, and increases long-term returns. A broadly shared commitment to green development by African governments creates favorable conditions to seize these opportunities.
Africa has proven its ability to turn bold vision into concrete progress that benefits people and the planet. In fact, pipelines of bankable projects are already in place, ready to be scaled up. Ethiopia has built a national grid powered almost entirely by renewable energy sources, especially hydropower.
The Grand Ethiopian Renaissance Dam (GERD) has already reached 2,350 megawatts in power-generation capacity, and will generate 5,150 MW when all 13 turbines are operational. Ethiopia’s renewable generation is so effective that its energy exports are now powering homes and businesses in Djibouti, Kenya, Sudan, and Tanzania, increasing its revenues while deepening regional ties.
In The Gambia, the Jambur Solar Power Station (23 MW) – a project, backed by a $165 million blended-finance package, that created over a thousand local jobs – delivers clean power to thousands of households. In South Africa, the Impofu Wind Complex (330 MW) powers industrial decarbonization through innovative “wheeling” agreements that attract global capital. And in Kenya, solar-powered green-ammonia production is reducing agricultural emissions, lowering costs for farmers, and boosting food security.
The Africa Green Industrialization Initiative (AGII) and the Flagship Report produced at ACS2 will show how African governments, private companies, and development-finance institutions can scale such transformative projects. And these examples are only the beginning. Africa’s renewable-energy potential is measured not in megawatts, but in terawatts – a scale that can reshape the future of energy globally. Beyond energy, investors can find bankable projects in areas like climate-smart agriculture, sustainable transport, and nature-based solutions.
Tapping Africa’s vast green-investment potential will require investors to abandon the outdated perception that Africa is a high-risk destination – a place for doing charity, not reaping returns. Africans are not asking to be rescued. The continent’s long-term fundamentals – demographics, resources, and innovation – are among the strongest in the world, and green investments are well positioned to deliver measurable economic, environmental, and social returns, for Africa and the world.
If Africa is empowered to advance green industrialization, it will be able to make major contributions to global climate stability, food security, and sustainable economic growth. If Africa is left behind, climate change will continue to accelerate, supply-chain disruptions will proliferate, and global instability will intensify.
At this November’s United Nations Climate Change Conference (COP30) in Belém, Brazil, the world will define the next phase of climate and development action. But one thing is already clear: the road to a stable climate and an equitable global economy runs through Africa. Rather than attempt to bypass it – and risk never reaching our shared destination – governments, investors, innovators, development partners, and all who believe in a greener future must arrive in Addis Ababa next month ready to deliver resources where they are needed most.
Fitsum Assefa Adela
Fitsum Assefa Adela, Minister of Planning and Development of the Federal Democratic Republic of Ethiopia, is Designated National Coordinator for the Second Africa Climate Summit (ACS2).
