Africa needs $2.8tn for climate action, report warns

Africa climate finance gap hits $2.8tn as report warns continent needs urgent funding for climate adaptation and mitigation

African countries will require an estimated $2.8 trillion between 2020 and 2030 to effectively combat climate change and meet obligations under the Paris Agreement, according to a new policy analysis released by Harrison Rehoboth Consulting.

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The report revealed that the continent needs approximately $277 billion annually to finance climate adaptation and mitigation projects aimed at reducing the devastating impact of floods, droughts, desertification and other environmental threats affecting millions of people across Africa.

Speaking on the findings, Femi Sekoni said the investment requirement reflects the urgent need for African countries to strengthen infrastructure, improve food security, protect vulnerable populations and accelerate the transition to renewable energy and sustainable economic systems.

The Africa climate finance gap report noted that despite increasing climate threats, the continent remains heavily dependent on foreign sources of funding.

According to the analysis, domestic financial institutions including banks, pension funds, insurance companies and private investors contribute only about 10 per cent of climate finance available across Africa, while international organisations and development partners provide the bulk of the support.

The report highlighted significant disparities in the distribution of climate funding across the continent, with countries such as South Africa, Egypt, Nigeria, Morocco and Kenya attracting a larger share due to relatively stronger financial systems and investment frameworks.

However, many countries facing severe climate risks continue to struggle to secure funding because of weak institutions, policy uncertainty, inadequate project preparation and concerns about investment risks.

The analysis also warned that much of the available climate financing comes in the form of loans rather than grants or concessional funding, raising fears that climate-related borrowing could worsen the debt burden of already struggling economies.

According to the report, adaptation projects such as flood control infrastructure, drought resilience programmes and coastal protection systems often deliver long-term environmental and social benefits but generate limited direct revenue, making debt repayment difficult for governments.

The report said these concerns have intensified global debates around climate justice and the responsibility of wealthier nations to provide greater grant-based support for vulnerable developing countries.

It acknowledged ongoing efforts by the African Development Bank and countries including Rwanda, Senegal and others to develop financing mechanisms capable of attracting private sector investment into climate projects.

Despite these efforts, the consulting firm stressed that the Africa climate finance gap cannot be bridged through international pledges alone.

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The report called for stronger domestic financial systems, improved governance, increased concessional financing and closer collaboration between governments and private investors to unlock sustainable climate funding across the continent.

Victory Emmanuel