Africa secures Sh12 trillion for green industrialisation

African development financial institutions and leading banks have committed to mobilising up to Sh12 trillion (Usd100 billion) to speed up the continent’s green industrialisation.

President William Ruto witnessed the signing of the landmark agreement in Addis Ababa, Ethiopia, during the Africa Climate Summit.

The pact brings together Africa’s financial institutions, including AfreximBank, Africa50, KCB Group, Equity Group, Stanbic Bank Kenya, and Ecobank, alongside the Africa Continental Free Trade Area (AfCFTA) Secretariat.

Together, they will channel Africa’s renewable energy wealth into building climate-smart industries, modernising value chains, and creating millions of jobs.

The Africa Green Industrialisation Initiative (AGII), first launched at COP28 and anchored in the 2023 Nairobi Declaration at the inaugural Africa Climate Summit, has now been transformed into a concrete action framework.

Its priorities include scaling up renewable energy-powered industrial clusters, supporting new value chains in critical minerals, green fuels, and battery manufacturing, and aligning cross-border policies to boost intra-African trade under AfCFTA.

Speaking at the signing ceremony on Monday, President Ruto hailed the breakthrough as proof of Africa’s determination to claim its rightful place in the global economy.

“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,” he said.

Industry leaders echoed the President’s remarks with KCB Group CEO Paul Russo pledging support for renewable-driven growth.

“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,” he said.

Equity Bank’s James Mwangi committed $1 billion of its recovery and resilience plan towards AGII projects.

Africa50 announced a flagship energy infrastructure project in Kenya, a $313 million public-private transmission line that will open up renewable power for industry.

The framework complements the Accelerated Partnership for Renewables in Africa (APRA), headquartered in Nairobi, which aims to deliver 300 GW of renewable energy by 2030.

Together, AGII and APRA position Africa not just as a supplier of raw materials, but as a hub of innovation, manufacturing, and sustainable trade.

With the secretariats for both AGII and APRA hosted in Kenya, the country is set to play a central role in steering Africa’s green transformation.