“Financing Africa’s green transition” was among the core topics of the Nairobi workshop on the Remaking Trade Project, themed “Greening Africa’s Future: Sustainable Trade and Green Industrialisation.” . With some of the fastest-growing economies, immense natural resources, and vast renewable energy potential, Africa could anchor the next phase of global decarbonisation. But to seize that role, it must close a staggering finance gap. In 2021-2022, Africa received approximately 43.7 billion USD in climate finance, roughly 23% of the total 250 billion USD required annually, implying a cumulative shortfall of around 2.5 trillion USD that is required between 2020 and 2030.

Closing this gap requires the alignment of trade and sustainability. Three instruments hold particular promise for financing sustainable trade in Africa: the carbon markets, green bonds, and development finance institutions. Anchoring these within the AfCFTA framework can unlock far greater potential, as the agreement provides a platform and framework for diverse stakeholders, from the AU and AfDB to the UN, to coordinate efforts. AfCFTA implementation is therefore a timely opportunity to embed sustainable trade principles directly into national and regional policies.