By Dayo Johnson
Africa will require an estimated $2.8 trillion between 2020 and 2030 to effectively tackle climate change and meet its commitments under the Paris Agreement.
A new report policy analysis by Harrison Rehoboth Consulting, states that the continent needs about $277 billion annually to fund climate adaptation and mitigation projects.
The investment is aimed at reducing the impact of floods, droughts, desertification, and other environmental challenges threatening livelihoods across the region.
Femi Sekoni, spokesperson for Harrison Rehoboth Consulting, said the funding is critical to strengthen infrastructure, protect vulnerable communities, improve food security, expand renewable energy, and support a transition to cleaner, more sustainable economies.
Despite the growing climate crisis, the report notes that Africa remains heavily dependent on foreign sources for climate financing. Domestic investors contribute only a small portion of available funds.
Local institutions including banks, pension funds, insurance firms, and private investors account for roughly 10% of climate finance flowing into the continent. International organisations and development partners provide the larger share.
Uneven distribution and structural barriers
Climate financing across Africa remains unevenly distributed. Countries with stronger financial systems and investment structures—South Africa, Egypt, Nigeria, Morocco, and Kenya—attract a significant percentage of available funding.
Many other African countries facing severe climate threats struggle to attract large-scale investment.
The report cites weak institutions, limited project preparation capacity, policy uncertainties, and concerns over investment risk as key barriers.
The analysis also raises concerns about the structure of climate financing available to African countries.
A large portion comes in the form of loans rather than grants or concessional financing, which could worsen debt burdens for nations already facing rising debt-servicing obligations and economic pressure.
Climate adaptation projects such as flood control systems, drought resilience programmes, and coastal protection infrastructure often provide social and environmental benefits but generate little direct revenue.
This makes loan repayment difficult for governments.
The report notes that rising debt levels have fueled global discussions around climate justice and the need for wealthier nations to provide more grant-based support to vulnerable countries facing the harsh effects of climate change.
The report acknowledges efforts by institutions such as the African Development Bank and some African countries, including Rwanda, Kenya, Senegal, Egypt, and South Africa, to expand climate investment initiatives and develop financing frameworks capable of attracting private investors.
However, Harrison Rehoboth Consulting stresses that Africa’s climate finance gap cannot be closed through international promises alone.
It calls for stronger domestic financial systems, improved governance, better project planning, and reforms in global financial institutions to make climate funding more accessible.
Key recommendations include: increasing concessional financing and grants for adaptation projects; improving collaboration between governments and private investors; strengthening policies that encourage long-term investment in climate and infrastructure projects; and building domestic financial capacity to reduce over-reliance on external funding.
The report concludes that closing Africa’s climate finance gap will require coordinated action at national, regional, and global levels to ensure funding reaches the countries and communities most exposed to climate risk.
Article Africa needs $2.8 trillion by 2030 to meet climate goals — Report Live On NgGossips.
