Banks and development financiers back Sh12 trillion green growth plan

Africa has secured a Sh12 trillion (USD 100 billion) financing pact to drive green industrialisation, a deal described as a turning point in the continent’s pursuit of climate-smart growth and job creation.

The agreement was signed in Addis Ababa, Ethiopia, during the Africa Climate Summit and witnessed by President William Ruto.

The deal unites Africa’s leading financial institutions;  AfreximBank, Africa50, KCB Group, Equity Group, Stanbic Bank Kenya, and Ecobank — together with the Africa Continental Free Trade Area (AfCFTA) Secretariat.

Their goal is to channel Africa’s renewable energy resources into modern industries, strengthen value chains, and create millions of new jobs.

The Africa Green Industrialisation Initiative (AGII), first unveiled at COP28 and anchored in the 2023 Nairobi Declaration during the inaugural Africa Climate Summit, has now been converted into a clear action plan. Its priorities include expanding renewable energy-powered industrial clusters, establishing value chains in critical minerals, green fuels and battery production, and harmonising cross-border policies to boost intra-African trade through AfCFTA.

Speaking at the signing ceremony on Monday, President Ruto hailed the pact as proof of Africa’s determination to shape its economic future.
“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 reinforced this commitment. KCB Group CEO Paul Russo said:
“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.”

Equity Bank CEO James Mwangi pledged $1 billion from the bank’s recovery and resilience plan towards AGII projects. Africa50 also announced a flagship investment in Kenya — a $313 million public-private transmission line project that will unlock renewable energy for industrial use.

The framework supports the Accelerated Partnership for Renewables in Africa (APRA), which is headquartered in Nairobi and aims to deliver 300 GW of renewable energy by 2030. Together, AGII and APRA position Africa not only as a supplier of raw materials but also as a hub for innovation, manufacturing, and sustainable trade.

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