Africa’s transition to a greener economy will depend on its ability to expand affordable energy access, mobilise climate finance, create decent jobs and develop local industries, speakers at the inaugural Africa Sustainability Forum 2026 have said.
The forum, held on Tuesday, October 20th, at the Oriental Hotel in Lagos, brought together business leaders, policymakers and sustainability professionals to examine how African economies can pursue climate goals while addressing poverty, infrastructure gaps and the need for industrial growth. Discussions centred on how the continent can build a green economy that delivers tangible benefits for households and communities, not just emissions reductions.
A central presentation at the forum identified five requirements for a credible green transition: universal access to affordable and reliable energy, decent jobs for a growing workforce, industrialisation and local value addition, fair distribution of transition costs, and protection for workers and communities dependent on fossil-fuel industries. The speaker argued that a transition that fails to expand energy access and support industrial development while keeping emissions low would not be credible.
The forum also highlighted a substantial financing gap, with less than $2.5 billion committed towards energy access against an estimated annual requirement of about $15 billion. This gap underscores the scale of investment needed to connect the continent’s roughly 600 million people who still lack electricity access.
Research from the International Energy Agency estimates that around $22 billion per year is required from 2023 to 2030 to connect all African homes and businesses to electricity, with a further $4 billion per year needed for clean cooking solutions. Private sector spending needs to grow 2.5 times between 2022 and 2030 to meet Africa’s energy investment needs, with $190 billion of private capital required by 2030, up from around $75 billion today.
Investors look for predictable policies, credible power purchase agreements and institutions capable of managing complex infrastructure projects, alongside investments in transmission networks, storage technologies and digital systems to ensure renewable energy can reliably power factories and cities. Without meaningful financial support, many African countries may struggle to move beyond fossil fuels while maintaining jobs, government revenue and energy access.
Studies by the United Nations Economic Commission for Africa have shown higher returns on investment in green sectors such as renewable energy compared to fossil-fuel-intensive sectors, with sustainable value chains generating gross value addition of up to 420 per cent while creating up to 250 per cent more jobs. In South Africa, green investments built around renewable energy, sustainable transport and nature-based rehabilitation could deliver 250 per cent more jobs and 420 per cent more value added compared to traditional fossil fuel investments.
The consensus at the forum was clear: the success of Africa’s green transition will depend not only on investment and regulation but also on whether households and vulnerable communities can participate in, and benefit from, the changes taking place.
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