By Abbas Nazil
Africa would require an estimated $2.8 trillion between 2020 and 2030 to effectively tackle the growing threats posed by climate change and meet obligations under the Paris Agreement, according to a new policy analysis by Harrison Rehoboth Consulting.
The report projected that the continent needs about $277 billion annually to fund climate adaptation and mitigation projects aimed at reducing the devastating effects of floods, droughts, desertification and other environmental disasters threatening livelihoods across Africa.
Speaking on the findings on Friday, spokesperson for the consulting firm, Femi Sekoni, explained that the huge financial requirement is necessary to help African countries strengthen infrastructure, safeguard vulnerable communities, improve food security, expand renewable energy initiatives and transition towards cleaner and more sustainable economies.
The analysis noted that despite Africa’s increasing vulnerability to climate change, the continent still relies heavily on foreign support for climate financing, while domestic investors contribute only a small fraction of the required funding.
According to the report, local institutions such as banks, pension funds, insurance companies and private investors account for only about 10 percent of climate finance inflows into Africa, while the bulk of the support comes from international organisations and development partners.
The report further revealed that climate financing across the continent remains unevenly distributed, with countries including Nigeria, South Africa, Egypt, Morocco and Kenya attracting a significant share of available funds due to relatively stronger financial systems and investment structures.
It added that many African nations facing severe climate threats are unable to attract large-scale investment because of weak institutions, limited project preparation capacity, policy uncertainties and concerns over investment risks.
The consulting firm also raised concerns over the nature of financing available to African countries, warning that a large percentage of climate funds are provided as loans instead of grants or concessional financing.
According to the report, this trend could worsen the debt burden of several African nations already struggling with rising debt-servicing obligations and economic pressures.
It stressed that repayment of such loans remains difficult because many climate adaptation projects, including flood control systems, drought resilience programmes and coastal protection infrastructure, generate limited direct revenue despite their significant social and environmental benefits.
The report therefore called on wealthier nations to provide more grant-based financial support to vulnerable African countries to enable them effectively confront the harsh realities of climate change.
