Africa wants to be a key player in the energy transition, which can become not another factor in the gap with richer, more advanced countries but a great opportunity for development. The signs of an African awakening, already evident, speak for themselves. Africa has experienced a boom in the past year that could mark a historic turning point in its clean energy race.
Between July 2024 and June 2025, the continent imported nearly 15 gigawatts of solar panels from China, a 60 per cent increase over the previous year. It is a striking figure not only because of its size, but also because it captures a change in trend: it is no longer just South Africa, traditionally at the forefront, that is driving the market, but a plurality of countries that have begun to invest seriously in photovoltaics. In two years, excluding Pretoria, African imports have tripled from 3.7 to 11.2 gigawatts.
Chinese activism
It is a lot and it is a step that confirms Chinese activism on African soil. But in order to give solidity to the energy transition on the continent, the decisive node now is both the resources to create or adapt networks and production facilities and also those also for the creation of value chains that—also using the very rich deposits of rare earths on the continent—will act as a driving force and economically support the energy transition. The goal is to create a virtuous ecosystem.
African leaders spoke of this as they wrapped up the three-day second African Climate Summit held in the Ethiopian capital on Wednesday. The summit concluded with the adoption of the Addis Ababa Declaration, which pledges to transform the continent into a global hub for renewable energy and climate solutions, requiring fair and predictable funding from the international community to compensate for the damage caused by climate change that Africa did not help create. Africa emits only 4 per cent of greenhouse gases, but suffers disproportionately from the impact of global warming. That’s why it is calling for more funding for climate change adaptation in the name of what Mahmoud Ali Youssouf, president of the African Union, has called “climate justice.” According to a 2024 report by the WMO, the World Meteorological Organisation, 48 of 54 African countries are at risk of flooding and 40 are at risk of drought, a risk exacerbated by climate change. Already verified impacts have caused an annual loss of 2-5 per cent of GDP.
Grants, not loans
African leaders, in the summit’s final declaration, made it clear that “climate change adaptation finance is a legal obligation of the developed world, not charity” and stressed that adaptation finance must be provided in the form of grants, not loans.” The heads of state and government spoke with one voice in calling for urgent reform of multilateral development banks to reduce borrowing costs and expand African representation in global financial governance.
As part of the summit, a landmark agreement was also reached to operationalise the long-awaited African Climate Change Fund, supported by the African Development Bank, which will channel green bonds and innovative financing instruments built for African realities. At the initiative of Ethiopia’s Prime Minister Abiy Ahmed, the African Climate Innovation Compact (ACIC) and the African Climate Fund (ACF) were established, committing to “mobilise $50 billion per year in financing to support climate solutions that accelerate innovation and scale up local climate solutions across the continent by providing African solutions to address climate challenges in energy, agriculture, water, transport and resilience by 2030.”
One hundred billion dollars mobilised
African financial institutions such as AfDB, Afreximbank, Africa50 and AFC have signed a cooperation agreement to operationalise the Africa Green Industrialisation Initiative (AGII), backed by $100 billion mobilised for green growth that aims to transform Africa’s renewable energy, resources and industries into a climate-smart growth engine. And some developed countries have pledged funding. The Italian government, for example, reaffirmed its commitment of $4.2 billion for the Italian Climate Fund, dedicating about 70 per cent of that to Africa. And it signed a memorandum of understanding with Ethiopia to give it access to this initiative. In contrast, the government of Denmark announced $79 million to support agricultural transformation.
Ethiopian President Taye Atske Selassie, closing the three-day event, said that “the summit showed that Africa is not a victim of a crisis it did not create,” but rather “wants to become a global centre for climate solutions.” “Our vision,” he continued, “is clear. We are committed to forging a prosperous, resilient and green continent. It is an injustice that more than 600 million Africans still live without access to electricity. Our climate action must begin with massive investments in renewable energy and a call for climate justice.”
“The summit declaration,” Taye Atske Selassie continued, “is based on three pillars: accelerating the development of renewable energy, forming a coalition of Africa’s critical mining producers to ensure fair returns in global supply chains, and protecting natural assets through reforestation and ecosystem restoration partnerships.” Taye stressed that the Addis Ababa Declaration “should not be a document to be placed in the archives,” but “a plan for immediate and measurable action, monitored through an African Union dashboard to ensure transparency and accountability. We have the will, the resources and the unity to realise our ambitions. Africa’s future is in Africa’s hands and we are building it now.”
The climate agenda
Bankole Adeoye, AU Commissioner for Political Affairs, Peace and Security, speaking on behalf of African Union Commission Chair Mahmoud Ali Youssouf, said the summit shifted Africa’s climate agenda from “crisis to opportunity, from aid to investment and from external prescription to African-led innovation.” “We sent a clear and united message ahead of COP30,” the UN climate conference to be held in November in Brazil.
“Africa’s climate finance demands are not charity appeals. They are calls for equity, justice and shared global responsibility,” added Bankole Adeoye, who stressed the need for a reformed global climate finance architecture that would reduce Africa’s debt burden and make climate finance a pathway to sovereignty, not bondage. “Africa is not a problem to be solved. Africa is a solution to be sustained,” Adeoye said. “May our actions match our ambitions. May our unity light the way forward.”
