The African continent will only meet the challenge of ecological transition by actively mobilising both public and private financing. Many sectors are in demand, such as infrastructure, energy, transport and agriculture. While the stakes are high, the solutions are there to address them.
Africa is not a continent like any other. It is the most affected by the impacts of global warming – the major floods currently occurring in Mozambique are a stark reminder of this – and it is also the continent that most needs massive structural financing. Faced with the urgency of effectively implementing an ecological transition, the solutions are there. Provided that both public actors and private financial institutions are mobilised.
Public funds mobilised, but insufficient
In terms of ecological transition, the tone was set by the African Union (AU) with its Climate Change and Resilient Development Strategy and Action Plan (2022–2032), whose initial objective was to serve as a roadmap for all other institutions on the continent. The framework and strategic intervention areas are clear, and obviously highlight the need to improve financial flows and resource mobilisation in favour of ecological transition.
At the continental level, several major plans are already under way. The African Development Bank’s (AfDB) Ten-Year Strategy 2024-2033 aims to be an essential and comprehensive instrument for combating climate change and protecting biodiversity. According to Caroline Kende-Robb, Principal Director of the Strategy and Operational Policies Department at the AfDB, this strategy “aims to mobilise climate finance at sufficient scale and speed through resources, partnerships and commitments made to advance green economy value chains. It will do so by leveraging Africa’s potential in the areas of renewable energy, smart agriculture, sustainable transport, waste management, water management, carbon credit trading and other climate-smart sectors.” This public strategy notably underlines the urgency of mobilising private sector investment, by strengthening partnerships between private finance actors and multilateral development banks.
African public financing is indeed being mobilised. As early as 2024, the AfDB committed 5.5 billion dollars to projects related to climate change and ecological transition, of which 56% went to adaptation projects and 44% to mitigation projects. The African Development Bank drew on its internal resources and is also counting on the mobilisation of other public institutions such as the African Development Fund (ADF), the Africa Climate Change Fund (ACCF), the ClimDev-Africa Special Fund, the Sustainable Energy Fund for Africa (SEFA), the Green Climate Fund (GCF) and the Climate Investment Funds (CIF).
Time is pressing, as the funds announced are not yet commensurate with the challenges. “One of the main obstacles is the enormous financing gap facing Africa’s ecological transition agenda,” says Damilola S. Olawuyi, Professor and UNESCO Chair in Environmental Law and Sustainable Development at Hamad Bin Khalifa University in Qatar. “With the African Group of Negotiators (AGN) on climate change calling for 1,300 billion dollars per year to finance climate-related development across the continent, it is clear that Africa’s ecological transition agenda will require the mobilisation of both public and private capital.“
Private financing to be mobilised urgently
The private finance world is paying close attention to the various challenges facing African countries, countries that are in great need of both external financing and long-term project support and management. In the field of sustainable infrastructure, the challenges are numerous. The development of renewable energy, climate-smart agriculture, low-carbon urban mobility, major transport infrastructure and resource management are all sectors in which major African cities are undergoing transformation. At the heart of local policymakers’ strategies: the use of public-private partnerships (PPPs).
Several foreign funds and companies have already responded to the call from African public authorities. This is notably the case for one of the market’s leading references in PPPs, the French company Meridiam. With one billion dollars in assets under management in 2025 on the African continent, it has succeeded where others have failed: committing to the long term. Its strategy is firmly focused on developing resilient infrastructure, reducing greenhouse gas emissions and improving biodiversity and the living conditions of residents. Today, Meridiam manages projects in ten African countries (Egypt, Togo, Tanzania, Senegal, Kenya, Côte d’Ivoire, Gabon, Madagascar, Ethiopia and Mauritania). “Given our significant presence across the entire continent,” explains Mete Saraçoğlu, Africa Director at Meridiam, “we have a very clear understanding of local needs, whether through the tenders we respond to or through our exchanges with local authorities. The concept of a public-private partnership is like a 25- or 30-year marriage, since that is generally the duration over which we will invest in a project. The key to success lies precisely in involving governments in project development, including in terms of equity participation.“
This success is not measured solely by financial performance. All non-financial criteria are essential, particularly in terms of services rendered to users. One of Meridiam’s flagship projects – the new electric bus system in Dakar, the BRT – is there to prove that sustainable finance and infrastructure development can go hand in hand. But seeing a project through to completion is no easy task. According to Meridiam, 80% of potential projects never reach the feasibility study stage, and 50% of completed feasibility studies never reach the financing close stage. This is due to a lack of coordination within political and economic ecosystems and macroeconomic conditions such as inflation or benchmark interest rates. “Implementing projects in Africa is sometimes complex, lengthy and tedious,” notes Mete Saraçoğlu. “Some projects do not come to fruition, but we position ourselves for the long term with real capacity to support governments on these projects. To do so, we rely on all interested development banks and all potential investors to contribute alongside us.” Despite the structural obstacles to investing in Africa, Meridiam plans to double its investments on the continent.
The African continent today concentrates both the climate emergency and part of the solutions. While strategic frameworks exist and public capital is being mobilised, the success of the ecological transition will largely depend on the ability of private investors to commit over the long term, alongside governments. A complex challenge, but an unavoidable one for building the sustainable infrastructure the continent needs.
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