In a significant move to accelerate Africa’s transition to a low-emission economy, leading development finance institutions, commercial banks, and trade organizations have agreed to create a new, shared platform for green industrial projects. This initiative, developed under the framework of the Africa Green Industrialisation Initiative (AGII), aims to overcome long-standing barriers that have prevented a majority of infrastructure projects from advancing beyond the feasibility stage.
Historically, a staggering 80% of industrial projects in Africa have stalled due to fragmented project design, a lack of technical support in early stages, and misalignment between project implementers and financiers. This has resulted in a mere 10% of projects reaching financial close. The new joint platform is designed to directly address these issues by consolidating technical capabilities, standardizing project design, and streamlining the path to finance for climate-aligned ventures.
In addition to the new project development platform, meeting participants reached a consensus on two other key areas:
- Standardizing “Bankability”: The institutions will work to create a shared investment framework to define what constitutes a “bankable” green industrial project in the African context. This framework will align due diligence processes and provide clarity on project evaluation criteria, including risk assessment, climate justification, and market fit.
- Digital Investment Platform: A new digital platform will be developed under the AGII umbrella. This tool will serve as a centralized hub to catalogue emerging projects, enhance visibility for financiers, and facilitate collaboration between investors and early-stage developers.
Convened by the Office of the Special Envoy on Climate Change in Kenya and the AfCFTA Secretariat, the AGII technical meeting marks a crucial shift from strategic ambition to concrete execution. This new infrastructure is expected to complement the African Continental Free Trade Area (AfCFTA) by building the supply-side readiness required for robust intra-African trade in manufactured goods and climate-resilient products.
The implementation of these platforms is expected to begin with pilot phases later in 2025. The success of this initiative will depend on continued institutional alignment, data sharing, and a concerted effort to build trust among all stakeholders. This coordinated effort represents a deliberate and structured attempt to close the gap between Africa’s ambitious climate goals and their tangible, bankable outcomes.
