Africa faces a significant funding gap in meeting its climate commitments, with a requirement of $277 billion annually, but currently attracts only about $30 billion in climate finance. This disparity was highlighted by Dr. Kola Adesina, Group Managing Director of Sahara Power Enterprise Group, at a United Nations General Assembly roundtable on Sustainable Global Investment, Economic Resilience and Climate Financing in New York. The funding shortfall poses a considerable threat to the continent's development and resilience.
The climate-finance challenge in Africa is compounded by a broader infrastructure deficit, with nearly 600 million people in Sub-Saharan Africa lacking access to electricity. The continent faces an estimated annual infrastructure financing gap of between $68 billion and $108 billion. Dr. Adesina emphasized that closing the financing gap is critical to enabling African economies to expand productive capacity, strengthen infrastructure, and withstand growing economic, environmental, and geopolitical shocks.
Dr. Adesina stressed that Africa's most pressing challenge is expanding its productive capacity at scale, requiring sustained investment in energy, infrastructure, industry, agriculture, and enterprise development. This investment is necessary to create jobs, strengthen competitiveness, and support long-term resilience. He argued that sustainable investment, climate finance, and economic resilience should no longer be treated as separate development priorities, given the continent's exposure to multiple pressures.
Africa is facing increasing risks from droughts, floods, and extreme heat, despite contributing less than four percent of global greenhouse-gas emissions. Dr. Adesina noted that the continent requires substantial investment not only to grow but also to protect infrastructure, businesses, food systems, and communities that underpin development. He pointed to the scale of global capital available for investment, with foreign direct investment reaching approximately $1.6 trillion in 2025.
Dr. Adesina highlighted that assets linked to sustainable investment strategies have grown to $16.7 trillion globally. However, the challenge lies in developing financing structures capable of directing a greater share of that capital towards productive projects in Africa. He called for stronger project preparation, greater mobilization of African institutional capital, deeper local-currency financing markets, and increased regional cooperation in energy, transport, and logistics.
Sahara Power Enterprise Group is investing in LNG, LPG, gas-to-power infrastructure, and logistics as part of its strategy to support Africa's energy needs while pursuing a net-zero ambition by 2060. This approach is consistent with Sahara's Beyond platform, which focuses on sustainable development through investment, innovation, talent development, collaboration, and environmental stewardship. Dr. Adesina emphasized that Africa's investment opportunity ultimately hinges on converting capital into productive capacity and jobs.
Dr. Adesina concluded that Africa's opportunity lies in building resilient prosperity, where investment translates into productive capacity, jobs, reliable infrastructure, and sustainable economic growth that endures for generations. He added that sustainable investment and climate financing could provide the capital needed to unlock that opportunity across the continent.
Key points
- Africa requires $277 billion annually for climate action but currently attracts only $30 billion.
- The continent faces an estimated annual infrastructure financing gap of between $68 billion and $108 billion.
- Sustainable investment, climate finance, and economic resilience are critical for Africa's development and resilience.
