Africa, a frontier for the next Green Economy

In the global green transition scenario, Africa, with a population of around 1.5 billion, more than China, is one of the most dynamic and at the same time underestimated frontiers: a reservoir of natural resources, entrepreneurial opportunities and growing human capital (by 2050, one in four people in the world will be African). A continent set to scale up to lead the sustainable economy of the future, as long as the international community chooses to invest in it seriously. 


A continent of great resources
Historically, Africa has only accounted for 3% of CO2 emissions, but is currently experiencing the highest impacts (50% of global excess mortality by 2050). Today, it produces 2.2 tonnes of greenhouse gases per capita, 3 times less than the global average and 8 times less than the US; it holds 25% of the world's biodiversity, 65% of the planet's untilled arable land, and 35% of critical minerals.

In terms of energy, the figures are also very significant. Renewables are expected to grow by 25% by 2030. Solar is worth 10 TW, or 60% of the global potential, with imports of panels soaring. Added to this are 110 GW of wind, 350 GW of hydro and 15 GW of geothermal. Yet despite this huge potential, Africa currently faces one of the world's greatest energy challenges: 600 million people have no access to electricity, representing 83% of the global energy deficit, according to estimates by the African Development Bank (AfDB).

Key player in global transition
<<The continent is undertaking a series of projects to not only defend itself against climate impacts, but also to assume a leading role in the global transition.>> Davinah Milenge Uwella, Head of Climate Change and Green Growth Department of the African Development Bank, emphasised this on the occasion of the 14th edition of the States General of the Green Economy, held at Ecomondo 2025.

Above all, AfDB and World Bank launched Mission 300, with the goal of bringing energy to 300 million people by 2030, through the deployment of mini-grids and off-grid solar solutions to reach the most remote communities. The financial requirement is more than $236 billion, but there is no shortage of initial responses: at the Africa Energy Summit in Dar es Salaam in January 2025, $55 billion was promised, while Project Zafiri, a $1 billion fund, is being set up to become the largest patient capital instrument in Africa to support decentralised renewable energy sub-sectors.

 

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Green jobs, youth, and innovation
Africa is the continent with the lowest average age and the highest percentage of young people worldwide, and its green transition will inevitably pass through the involvement of the younger generation. The YouthADAPT programme was therefore created to sustain the entrepreneurs of the future: so far, it has financed 41 enterprises in 20 countries, creating 11,000 jobs, 61% of which for women, and mobilising $7 million. The next phase aims at much more ambitious goals: 100 enterprises supported; $21 million allocated; 40,000 new jobs, half of them for women; one million young people trained, through the Sustainability Academy. All in all, an investment in human capital that has transformative potential for the entire continent.

The circular economy
The African Development Bank is fostering a country-led approach to the circular economy, with initiatives ranging from the drafting of national roadmaps to the creation of the Africa Circular Economy Facility, a fund specifically designed to support SMEs and public policies. A real economic engine, if backed by adequate investment: it is estimated that in Africa circular models could reduce food loss and waste by 50% by 2050, while the textile recycling market will grow to $12.8 billion by 2031. The value of raw materials that can be recovered from e-waste is $3.2 billion; that of plastic packaging, currently lost, amounts to about $4-6 billion per year.


Nature-based Solutions
Nature-based Solutions constitute one of the areas of greatest opportunity for Africa, not only environmentally, but also economically. The Congo Basin, for example, plays a key role in combating climate change, thanks to its ability to absorb CO2: almost 1.5 billion tonnes per year. The total value of the benefits of this ecosystem has grown from $590 billion in 2000 to $1,150 billion in 2020. Strategic growth opportunities are offered by ecotourism, forest monitoring, value-added processing and carbon markets, while challenges lie in the limited participation of local authorities and the scarcity and unpredictability of climate finance.
In Sahel, the Great Green Wall Initiative project is contributing to combating desertification, soil degradation and climate change. With $6.5 billion already pledged and over 100 projects started, the goal by 2030 is to regenerate 100 million hectares of degraded land, sequester 250 million tonnes of CO₂ and create 10 million green jobs.

Adaptation projects
Initiatives supported by the African Development Bank illustrate how Africa is already building advanced adaptation solutions. In Ethiopia, the Borana Resilient Water Development project is providing continuous access to water for 24,800 people and 83,000 livestock, through infrastructure powered by smart wells, nature-based interventions and digital drought and flood warning systems. The impact is also significant in social terms: at least 50% of the beneficiaries are women and the new WASH (Water, Sanitation, Hygiene) facilities increase girls' school attendance. In the Gambia, the expansion of the Port of Banjul is a resilient coastal infrastructure model, in public-private partnership, with digital risk monitoring systems and mangrove forests as a natural barrier against storms.

 

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Finance and investments
Yet despite progress, the gap remains huge. Africa receives $43.7 billion per year (2021/2022) in climate finance, but would need $2.6-2.8 trillion by 2030 just to implement the NDCs. An international mobilisation is thus required to tap into the full potential offered by this continent. For example, the Benban Solar Park in Egypt, one of the largest photovoltaic installations in the world, or the Kigali Innovation City in Rwanda, a smart, green city, are examples of what is possible when public and private capital work together. As Davinah Milenge Uwella pointed out, <<Africa is ready to lead the next climate economy, but it needs long-term vision and strategic partners, ready to collaborate with pan-African institutions and support young people and SMEs.>>
Article written by Maria Carla Rota

This blog is a joint project by Ecomondo and Renewable Matter
 

Credits

• Photo by Aaditya Arora
• Photo by Julian Vera Film