On 17 September 2025, African leaders made a bold statement to the world: the continent is not just a recipient of climate finance it is determined to design and drive the global green economy.
At the centre of this shift is Ethiopia’s Prime Minister, Abiy Ahmed, who unveiled an ambitious plan to mobilise $50 billion a year by 2030 through the new Africa Climate Innovation Compact and the African Climate Facility. Alongside this, African development banks and lenders pledged up to $100 billion for green industrialisation, signalling a collective commitment to finance the continent’s climate future from within.
This is more than just an economic policy, it is climate diplomacy in action. For years, Africa has been positioned as a climate victim, relying on promises from international donors and global funds that often fall short. By pivoting to home-grown financing, leaders are reframing the conversation: Africa is not pleading for climate justice; it is building climate opportunity.
External climate financing has long been a double-edged sword. While donor funds provide lifelines, they often come with delays, conditions, or political strings attached. The move toward internal financing mechanisms is Africa’s declaration of agency proof that the continent can back its climate ambitions with its own capital, innovation, and strategic planning.
The tension, however, remains. Donor funds will still play a role, particularly for vulnerable nations with fragile economies. But African leaders are making it clear: external support must complement, not dictate, Africa’s climate path.
Ethiopia may have made the headlines today, but it is not alone. Kenya continues to champion renewable energy with its geothermal and wind projects. South Africa is piloting green hydrogen as a future export. Nigeria and Morocco are investing in solar mega-grids to power millions. These initiatives are diverse, but they share a common thread: innovation rooted in Africa’s own resources and realities.
Of course, the road will not be smooth. Governance gaps, debt burdens, and limited institutional capacity could slow progress. Mobilising billions in domestic resources will require not only financial engineering but also political will, transparency, and trust. The success of these initiatives will hinge on whether African governments can channel funds into projects that deliver both environmental and social impact.
The timing is significant. With global attention fixed on climate action, Africa is no longer waiting on the sidelines. By pushing for home-grown climate finance, the continent is positioning itself not as a passive participant, but as a co-architect of the world’s climate economy.
If Africa succeeds, it won’t just meet its own green goals it will redefine what climate diplomacy looks like for the Global South.
Source: Green Central Banking