Africa faces a significant challenge in meeting its climate commitments due to a substantial funding gap. According to Dr. Kola Adesina, Group Managing Director of Sahara Power Enterprise Group, the continent requires about $277 billion annually for climate action but currently attracts only around $30 billion in climate finance. This disparity was highlighted at a United Nations General Assembly roundtable on Sustainable Global Investment, Economic Resilience and Climate Financing in New York. Dr. Adesina emphasized that the funding shortfall could undermine Africa's development and resilience.
The climate-finance challenge in Africa is compounded by a broader infrastructure deficit. Nearly 600 million people in Sub-Saharan Africa still lack access to electricity, and the continent faces an estimated annual infrastructure financing gap of between $68 billion and $108 billion. Dr. Adesina stressed 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 argued that sustainable investment, climate finance, and economic resilience should no longer be treated as separate development priorities. He cited the continent's exposure to multiple pressures, including inadequate infrastructure, energy shortages, food insecurity, and climate-related disasters. Africa contributes less than 4% of global greenhouse-gas emissions but faces increasing risks from droughts, floods, and extreme heat.
To address the funding gap, Dr. Adesina 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. He pointed to the scale of global capital available for investment, with foreign direct investment reaching approximately $1.6 trillion in 2025 and assets linked to sustainable investment strategies growing to $16.7 trillion globally.
Dr. Adesina highlighted Sahara's investments 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. He emphasized that Africa's investment opportunity ultimately hinges on converting capital into productive capacity and jobs. The approach is consistent with Sahara's Beyond XXX platform, which focuses on sustainable development through investment, innovation, talent development, collaboration, and environmental stewardship.
Dr. Adesina noted 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.
The Sahara executive's call for action underscores the urgent need for increased climate finance in Africa. With the continent's development and resilience at stake, efforts to bridge the funding gap and mobilize sustainable investment are crucial. As Dr. Adesina emphasized, Africa requires substantial investment not only to grow but also to protect the infrastructure, businesses, food systems, and communities that underpin development.
Key points
- Africa requires $277 billion annually for climate action but gets only $30 billion.
- The continent faces an estimated annual infrastructure financing gap of between $68 billion and $108 billion.
- Closing the financing gap is critical to enabling African economies to expand productive capacity and strengthen infrastructure.
