By Witness Radio team.
Addis Ababa, Ethiopia; African financial institutions have signed a landmark Cooperation Framework to transform Africa’s renewable energy, resources, and industries into a climate-smart growth engine through operationalization of the Africa Green Industrialisation Initiative (AGII) during the Second African Climate Summit (ACS2) in Addis Ababa, Ethiopia.
This significant step towards sustainable development and climate resilience underscores the gravity of the decision and its potential to shape Africa’s future.
The AGII, built on the Nairobi Declaration and COP28, will accelerate renewable-powered industries, expand regional value chains, and establish Africa as a global hub for sustainable trade, anchored in millions of new jobs and climate-smart industries.
The $100 billion deal, backed by the African Development Bank (AfDB), Afrexim Bank, Africa50, AFC, leading commercial banks, and the African Continental Free Trade Area (AfCFTA) Secretariat, is a testament to African leadership in shaping the global energy transition. This framework, which prioritizes mobilising African capital first, de-risking projects, and aligning policies to attract international investment, is a source of pride and inspiration for the continent.
President William Ruto of Kenya, and a key architect in the initiative, described the agreement as a milestone for economic development.
“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.
The three-day Summit, which began yesterday, the 8th, and ends tomorrow, the 10th, is being hosted by the government of Ethiopia in collaboration with the African Union (AU). The African heads of state, who have converged in Ethiopia’s capital, Addis Ababa, are not just participants but leaders in charting Africa’s climate future at the second Africa Climate Summit (ACS2).
Under the theme, “Accelerating Global Climate Solutions: Financing for Africa’s Resilient and Green Development,” they are actively contributing to the discussions and decisions that will shape Africa’s climate future.
While opening the Summit, H.E. Abiy Ahmed Ali, the Prime Minister of the Federal Republic of Ethiopia, called for real investments in climate solutions.
“We are not here to negotiate our survival. We are here to design the World’s next climate economy. As COP30 approaches, Africa must stand not just as a bloc of negotiators, but as a continent of solutions. We call for real investment, not charity, and proudly present Ethiopia’s bid to host COP32 in 2027.” H.E. Abiy Ahmed Ali said, emphasizing the urgent need for immediate and substantial investments in climate solutions.
He proposed establishing the Africa Climate Compact, a comprehensive initiative that aims to produce innovators by 2030 and will be financed and owned by Africa, with implementation supported by partners. The Africa Climate Compact is a strategic plan that aims to foster a culture of innovation and entrepreneurship in climate solutions across the continent. It will be a continent-wide partnership uniting university, research institutions, startups, rural communities, and innovators across the continent.
The African Climate Innovation Compact (ACIC) will be a continent-wide partnership uniting university, research institutions, startups, rural communities, and innovators across the continent.
The Compact is structured around five pillars—innovation discovery, financing, knowledge development, policy enablement, and public engagement. ACIC will be backed by a blended financing model targeting $50 billion in annual investments.
Before the opening, H.E. Dr. Fitsum Assefa, Ethiopia’s Minister of Planning and Development and the Coordinator of ACS2, briefed the Press about the Summit, saying, “This is not just a meeting. It is a defining moment. Africa is disproportionately affected by climate change, contributing less than 4% of global emissions, yet bearing some of its harshest impacts. Yes, Africa is a victim of climate change, but it is also providing climate solutions. But we cannot do this alone. We need global solidarity, Fair finance, and genuine partnership and investment to ensure that Africa’s resilience becomes the World’s resilience.” H.E. Dr. Fitsum Assefa said.
She further added that, “At the same time, Africa is home to extraordinary potential: the youngest population in the World, vast renewable energy resources, and innovative communities driving locally rooted solutions.”
The leaders are tasked to develop Africa-led solutions in renewable energy, adaptation, green growth, and nature-based resilience, and unlocking climate finance by pushing for fair, predictable, and scaled-up resources for Africa’s priorities, out of the Summit.
