Africa needs $2.8tn for climate fight – report

From Bamigbola Gbolagunte, Akure

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 policy analysis recently released by a consulting firm, Harrison Rehoboth Consulting, revealed this.

The report stated that the continent needs about $277 billion annually to fund climate adaptation and mitigation projects aimed at reducing the devastating impact of floods, droughts, desertification and other environmental challenges threatening livelihoods across Africa.

The spokesperson of the consulting firm, Femi Sekoni, explained that the huge funding requirement is necessary to help African countries strengthen infrastructure, protect vulnerable communities, improve food security, expand renewable energy and transition to cleaner and more sustainable economies.

Sekoni said despite the growing climate crisis, Africa still depends heavily on foreign sources for climate financing, with domestic investors contributing only a small portion of the available funds.

According to estimates cited in the analysis, local institutions including banks, pension funds, insurance firms and private investors contribute only about 10 percent of climate finance flowing into the continent, while international organisations and development partners account for the larger share.

The report further revealed that climate financing across Africa remains unevenly distributed, with countries such as South Africa, Egypt, Nigeria, Morocco and Kenya attracting a significant percentage of available funding due to stronger financial systems and investment structures.

It added that many African countries facing severe climate threats are unable to attract large-scale funding because of weak institutions, limited project preparation capacity, policy uncertainties and concerns over investment risks.

The analysis also raised concerns over the structure of climate financing available to African countries, warning that a large portion of the funds comes in the form of loans rather than grants or concessional financing.

According to the report, this situation could worsen the debt burden of several African nations already struggling with rising debt-servicing obligations and economic pressures.

It explained that 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, making loan repayment difficult for governments.

The report noted that concerns over rising debt levels have continued to fuel 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.

It acknowledged 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, the consulting firm stressed that Africa’s climate finance gap cannot be closed through international promises alone, insisting that stronger domestic financial systems, improved governance, better project planning and reforms in global financial institutions would be necessary to make climate funding more accessible across the continent.

The report called for increased concessional financing, improved collaboration between governments and private investors, and stronger policies that would encourage long-term investment in climate and infrastructure projects across Africa.