- Afreximbank urged governments and investors to fund green infrastructure by combining public finance, carbon markets, and private capital.
- The bank highlighted tools like green bonds and PPPs as effective ways to support clean energy, eco-transport, and climate-smart agriculture projects.
The African Export-Import Bank (Afreximbank) has urged stronger and more coordinated investments in green infrastructure across Africa, stressing the urgent need to tackle the continent’s twin challenges of environmental degradation and sustainable development.
In its newly released Trade and Development Finance Brief (ATDFB), Afreximbank lays out a roadmap for mobilising public funding, multilateral development bank instruments, carbon finance, and private capital to support infrastructure that meets global climate goals and Africa’s development priorities.
The bank underscores that climate-resilient infrastructure is now essential, not optional, as climate change intensifies its economic and ecological effects across the continent.
“As climate change continues to reshape the global economic landscape, green infrastructure financing must sit at the heart of Africa’s development agenda,” the bank stated.
The Trade and Development Finance Brief identifies Multilateral Development Banks (MDBs) as pivotal players in this transition. It highlights the Asian Development Bank (ADB) as a model, referencing the ADB’s $600 million investment in green infrastructure in China, including waste-to-energy projects, carbon emission reduction initiatives, and sustainable transport systems.
Afreximbank calls for similar interventions in Africa, noting that several countries have already begun leveraging public finance tools such as green bonds, carbon emission auctions, and climate-sensitive national budget allocations.
The publication also points to the growing potential of carbon markets as a viable funding stream, particularly for African countries implementing emission reduction, renewable energy, and reforestation initiatives.
Beyond public and international finance, the bank emphasises the private sector’s critical role. It advocates for public-private partnerships (PPPs), green infrastructure investment vehicles, and blended finance structures that provide stable returns while supporting green growth.
These partnerships can drive projects in renewable energy, eco-friendly transport systems, green buildings, and climate-smart agriculture—sectors that increasingly serve as pillars of resilient, future-proof African economies.
The report concludes that blending traditional and innovative financing mechanisms is vital for building Africa’s climate-conscious, resilient, and inclusive infrastructure.
“By leveraging this mix of funding tools,” the brief asserts, “Africa can unlock a new era of infrastructure development—one that fuels economic growth while safeguarding the continent’s natural capital.”
Afreximbank’s call aligns with broader continental goals, including those outlined in the African Union’s Agenda 2063 and Africa’s Common Position on Climate Change, as well as commitments under the Paris Agreement and the UN Sustainable Development Goals (SDGs), particularly SDG 9 (Industry, Innovation and Infrastructure) and SDG 13 (Climate Action).