2025 reinforces Africa’s role as a key player in the global green transition

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“Africa stands at the frontline of climate change, and on the frontier of opportunity”

– Carl Roothman, CEO, Sanlam Investments

 

Africa has continued to record positive momentum in the green economy during 2025, with several encouraging developments across energy, finance and climate resilience. Renewable energy remains a standout area. Multiple large-scale solar and wind projects reached key milestones this year, particularly in Egypt, South Africa, Namibia and Senegal, adding significant clean power capacity and supporting regional energy security.

Green hydrogen has also moved from planning to early implementation, with pilot projects in Namibia, Morocco and South Africa attracting global investment and positioning Africa as a future exporter of clean fuels.

Green finance expanded further in 2025. More African governments and cities issued green and sustainability-linked bonds to fund clean transport, water infrastructure and climate adaptation. Carbon markets also gained traction, with improved standards and transparency helping African nature-based carbon projects generate revenue for conservation and community development.

On the adaptation side, climate-smart agriculture projects scaled up across East and West Africa, supporting farmers with drought-resistant crops, digital weather tools and regenerative farming practices. Progress on the Great Green Wall continued (across 11 countries), creating jobs while restoring degraded land.

Overall, 2025 has reinforced Africa’s role as a key player in the global green transition, combining climate action with economic growth and job creation.

Some highlights from events around the world this year:

Davos 2025
The World Economic Forum Annual Meeting held in Davos in January placed strong emphasis on Africa’s growing strategic importance in the global economy, particularly in energy transition, digital transformation and sustainable growth. A major highlight was Africa’s role in the global green transition.

This year’s South African presidency of the G20 was widely seen as a significant milestone for both the country and the African continent. It allowed South Africa to shape the agenda around priorities that resonate strongly with developing economies. Overall, the presidency was viewed as constructive and impactful, despite a challenging global environment marked by geopolitical tensions, debt pressures and climate risks.

“Not all doom and gloom”
The carbon market masterclass and the project pitches with a $7.1 bn pipeline were just some of the highlights of the third edition of Africa’s Green Economy Summit in Cape Town. The urgency of rethinking development models that prioritise short-term economic gains over environmental health and fast-tracking Africa’s access to climate finance were strong themes in the keynotes and discussions.

“Africa presents unprecedented opportunities. It is not all doom and gloom,” said Anthony Nyong, Director Climate Change and Green Growth Department at the African Development Bank. He reiterated the need for climate finance and investment to be enhanced, stating: “Africa receives less than 4% of global climate finance. We want to move Africa to a double digit recipient.” Read more.

Invest in African Energy (IAE) in Paris highlighted Africa’s central role in global energy security and transition pathways. Discussions focused on attracting investment into oil and gas alongside renewables, emphasising a balanced and pragmatic energy transition. Key themes included gas-to-power projects, LNG development, energy infrastructure financing and policy certainty.

Africa’s own transition
Enlit Africa held in Cape Town in May highlighted Africa’s accelerating shift towards renewable energy, a just energy transition and a broader green economy. One of the key takeaways was the strong focus on scaling renewable power to meet rising demand while improving energy access. Solar, wind, hydro and battery storage projects featured prominently, with utilities and independent power producers sharing lessons on integrating variable renewables into national grids.

In his keynote address, South Africa’s Minister of Electricity and Energy, Kgosientsho Ramokgopa, urged the continent to define its own path for energy development: “Africa must articulate its own transition that has African characteristics.”

“Energy is everything”
Former Minister of the Economy, Planning and Cooperation in Senegal, Amadou Hott, delivered a continental keynote address at Africa Energy Forum in Cape Town. He prefaced his address by referencing to his recent (unsuccessful) campaign for the job of AfDB president, saying it took him to every corner of the continent where the message from everyone was clear: “Energy is everything. Without abundant, reliable, affordable and sustainable energy, we have no transformation,” said Hott.

Replacing climate aid with investment
The Africa Climate Summit held in Egypt in September underscored Africa’s determination to move from climate commitments to implementation. There were strong calls for scaled-up climate finance, debt relief and faster access to adaptation funding for vulnerable countries. Renewable energy, green hydrogen and climate-smart agriculture were showcased as drivers of growth and jobs. Leaders emphasised Africa’s role as a solution provider in the global climate response.

“It is time to replace climate aid with climate investment,” Ethiopian Prime Minister Abiy Ahmed said at the opening ceremony. “The returns will be measured in avoided emissions, millions of jobs, enhanced food security, stabilised regions and a more resilient global climate.”

Mobilising private capital
London’s AFSIC 2025 emphasised Africa’s growing appeal as an investment destination, with strong focus on energy, infrastructure and the green economy. Key discussions centred on mobilising private capital, reducing risk through blended finance and accelerating bankable renewable energy projects. Sustainable mining, critical minerals and regional value chains featured prominently, reflecting Africa’s role in the global energy transition.

Africa’s high-potential carbon assets
Carbon Markets Africa, held in Sandton in October, highlighted Africa’s rising influence in global voluntary and compliance carbon markets. Key discussions focused on improving integrity, transparency and standardisation to boost investor confidence and ensure real climate and community benefits. Nature-based solutions, including forestry, mangroves and regenerative agriculture, were showcased as high-potential assets for African countries. Governments and developers emphasised linking carbon revenues to local development and adaptation finance.

The UNDP’s Africa Sustainable Finance Hub was the official host part of the event. “We are preparing governments across Africa to become carbon market ready,” says Maxwell Gomera, Resident Representative of UNDP South Africa and Director of the Africa Sustainable Finance Hub. He adds: ”We are seeing a lot of innovation across the African continent. And that is showing us that we can transform the economy.” Read the full interview here.

Africa as “agent of transformation”
At COP30 in Belém, Brazil, several key decisions and initiatives important to Africa were established, including a mechanism for just transition, commitments to triple adaptation finance and progress on the Loss and Damage Fund. However, the summit also faced criticism for failing to secure a binding roadmap for the phase-out of fossil fuels. 

Addressing the COP30 leaders’ summit, African Union Commission Chair H.E. Mahmoud Ali Youssouf called Africa “an agent of transformation, leading the way towards a just, inclusive, low-carbon future.” He lamented, however, that while Africa is home to 40% of global renewable potential, it receives considerably less climate finance. He added, “We do not ask for charity but for climate justice, fair access to finance, technology and opportunity. Those least responsible for this crisis must not bear its heaviest burden.”

 

• This article first appeared in the Green Economy Express newsletter, published by Africa’s Green Economy Summit.