Colleagues and friends, 

I'm honoured to join you today at the Africa Sustainability Forum. In my remarks today I will focus on the key opportunities and trends for sustainable finance in Africa. 

With its rapid population growth, abundant natural resources, digital transformation, and increasing global influence, Africa is an undeniable force shaping the 21st century. To cite only three key elements: 

By 2050, one in four people will be African. The African Continental Free Trade Area (AfCFTA), the largest free trade zone in the world, connecting 1.3 billion people across 55 countries, unlocking $3.4 trillion in economic opportunities. Africa has 60% of the world’s best solar potential and massive hydropower, wind, and geothermal resources.  

Ladies and gentlemen, 

We are witnessing extraordinary times.  

Each year, extreme weather diverts 2% to 5% of Africa's GDP. This massive climatic impact is happening, despite the continent contributing less than 4% to global emissions. Conflict and insecurity continue to persistently plague parts of the continent including the Central Sahel and the Horn of Africa; and more recently the Great Lakes. 

There is also a remarkable plunge in global solidarity; and where global principles of equality and climate change are being called into question, and where global ODA flows are on a downward trend. 

Africa financial positioning is worsening due to several factors among which weak economic growth and debt distress. 20 out of 38 low-income countries in Africa were either in debt distress or at a high risk of distress. African countries currently face some of the highest borrowing costs in the world, partly due to structural problems (economic, governance and public finances), but partly also due to low credit ratings which make them seem like risky investments. Debt payments negatively impact the ability to attract FDI and national expenditure on poverty reduction, health and education. As part of UNDP’s project to support African countries improve their credit ratings, a knowledge platform meant to serve as a one-stop-shop for data, methodological information, and research on credit ratings and an advisory council have been established. The establishment of the Africa Credit Rating Agency, by the AU and partners in February 2025, will be a game changer. 

As we navigate these challenges and opportunities, it is essential to recognize the role of institutions that can bridge local needs with global expertise. UNDP occupies a unique position in this landscape. We are neither a bank nor a donor, but a trusted development partner active in nearly every developing nation. Our strength lies in connecting global innovation to local solutions, focusing on building strong, sustainable financial ecosystems through policy advice, technical assistance, and capacity building. By working alongside governments, financial institutions, and investors, we help lay the foundation for a thriving sustainable finance ecosystem that is both resilient and inclusive. 

KEY TRENDS AND CHALLENGES IN SUSTAINABLE FINANCE IN AFRICA 

One of the most pressing challenges is the limited flow of sustainable finance to Africa. Despite the continent’s vast potential, it receives only 3% of global climate finance. 

Embedding climate and environmental considerations into national development plans is a key step. Around 40 African countries are developing or have already completed an Integrated National Financing Framework to align their development plans and financing strategies with the SDGs. In essence, INFFs transform sustainability from an abstract commitment into an actionable blueprint. The impact of INFFs is already tangible. Combined, countries implementing INFFs worldwide have mobilized or reoriented more than $48 billion toward initiatives that advance the SDGs. 

Strengthened policy frameworks will also contribute to finance mobilization. The G20 Sustainable Finance Working Group, which has just concluded its second meeting, is exploring how to enhance the global sustainable finance architecture, with a focus on scaling up co-financing between climate funds, multilateral development banks, national development banks and the private sector. Delegates are also discussing a set of recommendations on financing for adaptation, crucial for Africa's resilience. Its last priority relates to enhancing the transparency, comparability, and interoperability of carbon credit data. With vast carbon sinks, including the Congo Basin and mangrove-rich coastlines, Africa can be a global leader in carbon trading. UNDP is working with African governments to develop regulatory frameworks that ensure carbon markets deliver real benefits for local communities and climate resilience.  

Addressing financial access requires more than just policy frameworks—it demands greater transparency and accountability in financial flows. This is where sustainability disclosure plays a crucial role. In many African countries, regulators are beginning to require greater climate-related reporting and risk assessment from financial institutions. The Johannesburg Stock Exchange (JSE) have been a pioneer with its sustainability reporting requirements. To move beyond climate disclosures, the Taskforce on Inequality & Financial Disclosures is developing recommendations and guidance for businesses and financial institutions to understand and report on impacts dependencies, risks, and opportunities related to people. Transparency builds investor confidence and creates an enabling environment for long-term investment. 

Turning to available financing instruments, African governments and companies are increasingly using green bonds. In Cabo Verde, UNDP provided technical support for issuing a set of green, social, and sustainability bonds that raised $16 million for blue economy infrastructure. UNDP is also exploring social and sustainability bonds, recognizing Africa’s needs to finance infrastructure for health, education, and other critical sectors alongside climate.  

Capacity building is also integral to mobilizing public and private finance for sustainable development. International organizations must work closely with governments, financial institutions, and development organizations to create a pipeline of bankable, impact-driven projects while ensuring that stakeholders have the knowledge, tools, and regulatory frameworks needed to scale sustainable finance.  

• In 2023, the G20 endorsed a Technical Assistance Action Plan (TAAP) which aims to strengthen an ecosystem of capacity-building initiatives to aid mobilization and scale-up of sustainable finance, particularly for emerging economies and least-developed countries.
• Several entities such as our host, the Capacity-building Alliance of Sustainable Investment, are key contributors to this ecosystem.
• UNDP has also recently launched a Platform for Investment Support and Technical Assistance (PISTA) to achieve $500 million in investments across 50 projects over the next four years. Our Sustainable Finance Academy and regional knowledge-sharing networks also equip African policymakers, investors, and stakeholders with practical tools to advance sustainable finance.  

CONCLUSION 

Looking ahead, trends indicate promising avenues for sustainable finance in Africa: growing policy harmonization, emerging carbon markets, and enhanced sustainability disclosure practices. Yet, critical gaps remain—limited capital access, fragmented policies, and perceived investment risks. Addressing these requires robust blended finance solutions, transparent frameworks, and comprehensive capacity-building initiatives. 

UNDP is committed long-term to bridging these gaps, leveraging our global reach and local expertise.  

Colleagues, imagine an Africa where transparent, resilient financial systems power sustainable and inclusive growth—where investments reach climate-smart agriculture, clean energy infrastructure, and resilient communities. This vision is achievable through sustained collaboration and innovative finance partnerships. 

Thank you.