Green Investment Key to Unlocking Africa's Potential Amid Climate Challenges: Planning, Dev't Minister

Addis Ababa, August 29, 2025 (ENA)—Unlocking green investment is vital for Africa, which has been emerging as a land of opportunity and hope for investors amid climate challenges, Planning and Development Minister Fitsum Assefa said.

“Africa is not a place for charity, but a destination for smart, high-return investments,” the minister noted.

 In an article published on Project Syndicate on 28 August 2025 under the title “Africa’s Green Economy Is a Good Investment,” she said the Addis Ababa Climate Summit that takes place next month will be a decisive moment to declare Africa’s green economy as “a wave of smart investment just waiting to be unleashed.”

 The summit will bring together heads of state and government, scientists, private-sector leaders, civil-society and youth representatives as well as global development partners to chart a new course for climate action and green investment on the continent.

 The minister cited the African Development Bank, which noted that Africa faces severe climate threats with droughts, floods, and extreme weather cutting GDP by 5–15 percent annually.

 She also stated that the continent holds 60 percent of the world’s best solar resources but accounts for only 1 percent of global solar capacity, receiving just 3 percent of global energy investments.

 Furthermore, Fitsum cited Ethiopia as an example where the national grid runs almost entirely on renewable energy, led by hydropower.

 The Grand Ethiopian Renaissance Dam (GERD) is already generating 2,350 megawatts and will reach 5,150 MW at full capacity, while also supplying power to neighboring countries, including Djibouti, Kenya, Sudan, and Tanzania.

 In the article, she also highlighted renewable projects such as Gambia’s 23 MW Jambur Solar Power Station, South Africa’s 330 MW Impofu Wind Complex, and Kenya’s solar-powered green ammonia production initiative on the continent.

 According to the minister, the forthcoming Africa Green Industrialization Initiative and ACS2 Flagship Report will provide frameworks for scaling up such projects with the support of governments, the private sector, and development finance institutions.

Challenging perceptions of Africa as dependent on aid, Fitsum said: “Africans are not asking to be rescued. Our continent’s young demographics, abundant resources, and innovation make green investments among the most promising worldwide.”

She further underlined Africa’s critical role in global climate solutions, noting that “the road to a stable climate and fair economy runs through Africa.”

As world leaders and investors prepare to gather in Addis Ababa in September, she said they face a choice between investing in Africa’s green economy for sustainable growth or allowing climate change to worsen instability and missed opportunities.