Africa green industrialisation initiative has moved from conversation to collaboration: William Ruto

Kenyan President William Ruto said that the Africa Green Industrialisation Initiative (AGII) has transformed into a concrete action framework. First launched at the 28th Conference of Parties to the United Nations Framework Convention on Climate Change, and rooted in the 2023 Nairobi Declaration, has moved from “conversation to collaboration”. It now underpins practical actions in generating $100 billion to realise the continent’s green industrialisation.

In a culmination of the Nairobi Declaration key players, the AfreximBank, Africa50, KCB Group, Equity Group, Stanbic Bank Kenya, Ecobank and the Africa Continental Free Trade Area (AfCFTA) Secretariat are joining hands to support Africa’s ambition to build green industries. 

These institutions will spearhead renewable energy-powered industrial clusters, support new value chains in critical minerals, green fuels and battery manufacturing, and align cross-border policies to boost intra-African trade under AfCFTA.

President Ruto witnessed the signing of a landmark agreement in Addis Ababa, Ethiopia, where African financial institutions and leading banks committed to mobilise up to $100 billion to accelerate the continent’s green industrialisation.

“United with our financial institutions, our energy systems and our trade corridors, we can anchor inclusive and globally competitive green value chains,“ the President said, adding that in only a few months, the initiative has moved from conversation to collaboration.

Financial leaders also pledged strong backing for the initiative. Africa50 announced a $313 million flagship energy transmission project in Kenya to unlock renewable power for industry.

African development finance institutions and leading banks struck the deal to channel renewable energy wealth into climate-smart industries, modern value chains and millions of jobs across the continent.

The framework complements the Accelerated Partnership for Renewables in Africa (APRA) headquartered in Nairobi, which targets 300 GW of renewable energy by 2030. With both AGII and APRA secretariats hosted in Kenya, the country plays a central role in shaping Africa’s green transformation.

The Addis Ababa agreement is more than just financial mobilisation. It marks Africa’s resolve to chart its own course, asserting leadership in global climate action and turning ambition into opportunity.

Commenting on the agreement, Vitumbiko Chinoko, climate specialist and project manager at Open Forum on Agricultural Biotechnology in Africa, said that the initiative is “investment magnet: this declaration is a statement that investors will leverage on to invest in Africa”. It will also aim for job creation and skills in Africa through the expansion of clean industrialisation, he added. 

The initiative will also ensure Africa’s energy security through focus on solar and other renewable resources, by aligning government banks and development partners, according to Chinoko.

Furthermore, it involves directing funds towards renewable energy, sustainable development and eco-friendly infrastructure, utilising Africa's natural resources and renewable capabilities for industrial change, while also emphasising Africa's accountability in independently addressing climate issues.

The intended $100 billion will be generated through synergised global and local private public partnerships and blended financing and active involvement of private sector investors.

KCB Group CEO Paul Russo pledged support for renewable-driven growth.
“As a sustainable institution, we have prioritised green growth and deliberately focused on accelerating renewable energy-based industrialisation, as envisioned by the AGII cooperation framework,” he said.

Equity Bank’s James Mwangi committed $1 billion of its recovery and resilience plan towards AGII projects.

Africa is estimated to face an annual climate financing gap of between $200 and $250 billion. The $100 billion commitment, while not closing this gap entirely, represents one of the largest private sector-led climate finance mobilisations in Africa’s history. 

AGII is an ambitious multi-stakeholder initiative that seeks to advance green industrialisation and investments across the continent by “prioritising energy-intense industries to trigger a virtuous cycle of renewable energy deployment and economic activity, with a special emphasis on adding value to Africa’s natural resource endowments”, as stated in the Nairobi Declaration. 

The initiative presents a timely opportunity to leverage untapped potential of the continent to drive sustainable development. It is a strategic and collaborative framework that seeks to drive a pan-African transformation by supporting green industrialisation across the continent.