Climate Financing in Africa: Strategies for the Future

A joint report by the African Private Capital Association (AVCA) in partnership with the Tony Blair Institute for Global Change (TBI)

This report provides a comprehensive overview of climate policy in Africa, highlighting existing policy frameworks geared towards building climate resilience across the continent. It also examines the categories of, investors in, and capital deployment strategies present in Africa’s climate finance ecosystem. We believe this collaborative report, which contains valuable recommendations for both governments and private sector investors, will undoubtedly spur effective action and have a positive impact in Africa’s fight against climate change.

AVCA Members

AVCA Members can access underlying and supplementary data informing the report

Key findings:

  • 822 climate-related private capital deals with a cumulative value of US$17.4 billion took place in Africa between 2012 and 2022.

  • Utilities – dominated by renewable energy deals – was the leading sector by both deal volume and deal value, attracting US$14.6 billion (84%) of private capital in the decade to 2022.

  • Geographically, East Africa experienced the most deal activity, with 32% of total deals struck in the region, spearheaded by Kenya.
  • 82% of investors see a strong business case and sufficient financial incentive for climate investments.
  • The most attractive sectors for climate investment are Renewable Energy (71%); Agriculture (47%) and; Transport (35%).

We look forward to hearing your thoughts