Ruto signs deal to mobilise Sh12.9 trillion for Africa's green industrial initiative

President William Ruto (fourth right) and leaders from development finance institutions and commercial banks after signing a cooperation agreement to support the Africa Green Industrialisation Initiative (AGII) in Addis Ababa, Ethiopia, on September 8, 2025. [Courtesy] President William Ruto presided over the signing of a landmark cooperation agreement to support the Africa Green Industrialisation Initiative (AGII) at the Second African Climate Summit in Addis Ababa, Ethiopia. This initiative aims to mobilise more than Sh12.9 trillion (approximately $100 billion) to enhance Africa's green industrial opportunities. The event, attended by Africa's development finance institutions and commercial banks, focused on advancing the Climate Positive Agenda, initially launched at the inaugural summit in Nairobi. During the summit, leading banking institutions across the continent made financial commitments that President Ruto highlighted as paving the way for tangible collaborations. "United with our financial institutions, energy systems, trade corridors, and partners working in solidarity, we can establish inclusive and globally competitive green value chains. In doing so, we assert Africa's rightful place in the modern economy-not merely as a source of raw materials, but as a continent of innovation, industry, and growth," Ruto stated. The framework for this initiative was first announced at COP28 and is rooted in the Nairobi Declaration of 2023, serving as an actionable plan. Its purpose is to accelerate the development of renewable-powered industries, expand regional value chains, and position Africa as a global hub for sustainable trade. The African Development Bank (AfDB), Afreximbank, Africa50, Africa Finance Corporation (AFC), KCB Group, Equity Bank, Standard Bank Kenya, Ecobank, and the AfCFTA Secretariat have jointly mobilized this significant funding. Together, these institutions plan to mobilize sustainable finance, align regulatory frameworks, and unlock technical expertise to promote climate-smart industries. Wamkele Mene, the Secretary General of AfCFTA, remarked that the framework will focus on the political, financial, and institutional levers needed to expedite Africa's green transformation. "We are starting with our own resources. Today's signing of the African DFI Cooperation Framework is historic," he noted. "By mobilizing African capital first, we are changing the dynamic. We demonstrate that we are not merely applicants for funding; we are investment partners inviting global capital to join an initiative that is already underway, structured, and de-risked by Africa itself." Wamkele emphasized that the focus will extend beyond individual projects to encompass entire ecosystems-industries that will anchor Africa's future value chains. "Africa is not waiting. We are no longer recipients of external blueprints; we are the architects of our own green future, showcasing African leadership and ownership," he added. With the increasing demand for clean technologies, green energy, and critical minerals, this agreement marks a transformative step toward turning Africa's renewable energy and industrial potential into a climate-smart growth engine. The framework integrates finance, technology, and policy coordination to support the global energy transition. To enhance access to renewable electricity, Africa50 and its partner, PowerGrid, are set to lead Kenya's-and indeed Africa's-first Independent Power Transmission (IPT) project, financed under a Public-Private Partnership (PPP) model, at an estimated cost of USD 313 million. This project aims to facilitate green industrialization by enabling the evacuation and distribution of renewable energy across Kenya's grid, particularly from geothermal and wind sources. It is also expected to create local jobs and promote skill development through capacity building. Designated as a flagship project for the Africa Green Industrialization Initiative, this energy infrastructure project includes a 177 km, 400 kV Lessos-Loosuk line and a 64 km, 220 kV Kisumu-Kakamega-Musaga line, along with accompanying substations. KCB Group CEO Paul Russo emphasized his institution's commitment to accelerating renewable energy-based industrialization, as outlined in the cooperation framework. "Achieving this vision requires a collective effort to provide both financial and non-financial solutions at scale. This is where institutions like KCB Group come in. We recognize that our role goes beyond being a financial intermediary; we are enablers of Africa's transformation," Russo said. Equity Bank CEO James Mwangi from noted that the bank will invest $1 billion of the $6 billion already committed to the Africa Recovery and Resilience Plan into financing projects within the initiative, ensuring that the funding supports local projects in the local currency. Haytham ElMaayergi, Executive Vice President of Global Trade Bank at Afreximbank, stated that the Africa Climate Summit and the African Green Industrialization Initiative offer a continental platform for turning aspirations into action.

Ruto signs deal to mobilise Sh12.9 trillion for Africa's green industrial initiative

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Ruto signs deal to mobilise Sh12.9 trillion for Africa's green industrial initiative

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