Business Maverick: What Africa Needs to Go Green Is Finance

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From sunshine to rare minerals to a youthful population, Africa has the raw ingredients to make the green transition. Now it needs the finance.

It’s an issue that looms large over this year’s climate conference, which is taking place in Dubai.

Even the continent’s buzzing startup scene lags behind the rest of the world. Africa was on the receiving end of just over 1% of the $415 billion in venture capital that went into the startup sector globally in 2022, according tofirm Briter Bridges. Of that, 15%, or around $800 million went into “clean tech” or “climate tech.”

“Two days ago, we went to distribute food relief to 4.3 million affected Kenyans in an emergency program that has forced us to re-allocate funds budgeted for education and health,” Kenya’s newly-elected president, William Ruto, told COP27 leaders in November. “The tradeoffs we are forced to make between indispensable public goods is evidence that climate change is directly threatening our people’s life, health and future.

“They ban coal, and we follow, they say firewood is not for fetching, they say we need to plant more trees,” Bola Tinubu, a leading candidate in this month’s Nigerian presidential elections, said in October. “If you don’t guarantee our finances and work with us to stop this, we are not going to comply with your climate change.”

The African Hydrogen Partnership, a grouping of private sector organizations, is pushing to develop green hydrogen as an alternative fro everything from public transport to clean cooking fuel.

 

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