African development finance institutions and major banks have pledged Ksh12 trillion ($100 billion) to support the continent’s green industrialization, in what leaders described as a landmark moment for Africa’s economic transformation.
The deal was signed on Monday, September 8, during the Africa Climate Summit in Addis Ababa, Ethiopia, with President William Ruto, chair of the Committee of African Heads of State and Government on Climate Change, playing a central role.
The pact brings together Afreximbank, Africa50, local banks in Kenya, and the African Continental Free Trade Area (AfCFTA) Secretariat. Funds will be directed towards renewable energy-powered industries, modernized value chains, and job creation.
The initiative builds on the Africa Green Industrialization Initiative (AGII), launched at COP28 and anchored in the 2023 Nairobi Declaration. Priorities include renewable energy clusters, new value chains in critical minerals, green fuels and batteries, and harmonised policies to boost intra-African trade. President Ruto hailed the agreement as proof Africa was moving from “conversation to collaboration.”
Kenya stands to benefit significantly, with Nairobi hosting both AGII and APRA secretariats. Analysts project thousands of new jobs in solar, wind and geothermal energy, while the electricity grid could expand from its current 2,708 MW to 9,800 MW by 2030 under Vision 2030. A $313 million (Ksh40.4 billion) Africa50 transmission project with KETRACO was also announced to improve renewable energy access for industries.
Still, doubts remain about implementation. Past climate finance pledges have often stalled, raising fears that benefits may bypass local communities and instead enrich political and business elites. Observers also warn that much of the financing could be loan-based, deepening Africa’s debt challenges.
Analysts argue the deal’s success will depend on strong governance, accountability, and equitable distribution. For many citizens, the test will be whether it delivers jobs, resilience, and sustainable industries, or becomes another unfulfilled promise.
