Cairo-based African Export‑Import Bank has outlined a bold agenda at the United Nations Climate Change Conference in Belém, Brazil, urging the continent to seize the dual opportunity of sustainable development and industrialisation through a just energy transition. Under its new president George Elombi, the institution emphasised the urgency of aligning Africa’s low-carbon ambitions with its economic growth pathways.
Afreximbank is advocating for climate finance mechanisms that recognise Africa’s unique context: a continent responsible for under 4 per cent of global emissions but hosting rich mineral reserves and more than 600 million people without access to electricity. The Bank argues that development financing must shift from debt-heavy loans towards grants and de-risked investments to support adaptation, clean energy infrastructure and industrial capacity building. It emphasised that Africa should no longer export raw materials alone but build value-added industries — for example converting lithium in the Democratic Republic of Congo into batteries.
During its participation at COP30, Afreximbank showcased initiatives such as its Trade Transformation Fund, designed to back green infrastructure and intra-continental value chains. Executive Vice-President Kanayo Awani described the Bank’s mission as “ensuring Africa’s voice is not only heard but heeded”, pointing to strategic sectors including critical minerals, renewables and carbon markets. At the same time, the Bank called for the rapid operationalisation of the Loss and Damage Fund, warning that African nations face disproportionate climate risks despite negligible historical emissions.
A key plank in Afreximbank’s stance is the concept of a “just transition” that addresses energy poverty, economic inclusion and industrialisation simultaneously. The Bank argued that while renewables must play a dominant role, transitional fuels like natural gas can also facilitate industrial growth — especially where access to power is limited. It underlined that Africa holds about 60 per cent of the world’s highest-quality solar resources but receives only around 3 per cent of global clean energy investment. Alongside that gap, biodiversity-rich regions such as the Congo Basin serve as vital carbon sinks and the Bank stressed they should be monetised as part of climate-resilient development.
Industry observers note that Afreximbank’s agenda reflects a broader shift across African financial institutions seeking to reframe climate policy as an engine of industrial strategy, rather than purely a mitigation exercise. In this respect, Africa stands ready to invest in local manufacturing, processing of strategic minerals, and the extension of value chains — though several headwinds remain. Debt burdens, limited technical capacity, currency risks and fragmented regulatory frameworks continue to hamper the scaling of green industrial projects. Afreximbank cautioned that unless financing is structured to support local ownership and capacities, the continent could miss out on industrial dividends.
On the financing front, Afreximbank is pushing for new instruments including blended finance platforms, sovereign-backed guarantees and on-market debt facilities to mobilise green investment at scale. At the same time, the Bank acknowledged that climate financing to Africa remains heavily skewed towards loans and intermediated flows, with adaptation funding particularly under-allocated. It called for direct access to funds through African institutions, reducing reliance on external intermediaries.
Follow Arabian Post
Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.
