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Next month, heads of state and government, climate scientists, private sector leaders, global development partners, and representatives of civil society and youth will convene in Addis Ababa, Ethiopia’s vibrant capital and the seat of the African Union, for the Second Africa Climate Summit. This is not merely a symbolic gathering; it is a declaration of intent by Africa, an opportunity to unleash a wave of high-return investment, and a potential turning point in how the world confronts the climate crisis.

Africa is on the front line of a socially and economically corrosive global environmental catastrophe. Droughts and floods are disrupting agriculture and displacing millions of people across the continent. According to the African Development Bank, climate change is reducing gross domestic product growth in Africa by between 5 and 15 percent each year, losses that mean millions fewer jobs and less investment in critical infrastructure.

But while Africa is a poster child for climate vulnerability, it is also a model of climate possibility, boasting vast renewable resources, rich biodiversity, rapidly growing economies, and a young, innovative population. Yet Africa’s green potential remains largely untapped. For example, though the continent possesses 60 percent of the world’s best solar resources, it currently accounts for only 1 percent of global installed solar capacity, and only 3 percent of global energy investment.

This represents a major missed opportunity, not least for investors. Whereas industrialized countries are attempting to retrofit economies that were built on voracious consumption of fossil fuel, Africa has the chance to build resilient, sustainable economies from the ground up. This lowers the risk profile of green investment on the continent and increases long-term returns. A broadly shared commitment to green development by African governments creates favorable conditions for seizing these opportunities.

Africa has proven its ability to turn a bold vision into concrete progress that benefits people and the planet. In fact, pipelines of bankable projects are already in place, ready to be scaled up. Ethiopia has built a national grid powered almost entirely by renewable energy sources, especially hydropower. The Grand Ethiopian Renaissance Dam has already reached 2,350 megawatts in power generation capacity, and will generate 5,150 MW when all 13 turbines are operational. Ethiopia’s renewable generation is so effective that its energy exports are now powering homes and businesses in Djibouti, Kenya, Sudan, and Tanzania, increasing its revenues while deepening regional ties.

The continent’s green investments are well positioned to deliver measurable economic and social returns for Africa and the wider world. 

Fitsum Assefa Adela

In The Gambia, the Jambur Solar Power Station (23 MW), a project backed by a $165 million blended-finance package that has created more than a thousand local jobs, delivers clean power to thousands of households. In South Africa, the Impofu Wind Complex (330 MW) powers industrial decarbonization through innovative “wheeling” agreements for the transmission of power to distant customers and attracting global capital. And in Kenya, solar-powered green-ammonia production is reducing agricultural emissions, lowering costs for farmers, and boosting food security.

The Africa Green Industrialization Initiative and the Flagship Report that will be produced during next month’s climate summit will show how African governments, private companies, and development-finance institutions can scale such transformative projects. And these examples are only the beginning. Africa’s renewable energy potential is measured not in megawatts (millions of watts) but in terawatts (trillions of watts), a scale that can reshape the future of energy globally. Beyond energy, investors can find bankable projects in areas such as climate-smart agriculture, sustainable transport, and nature-based solutions.

Tapping Africa’s vast green investment potential will require investors to abandon the outdated perception that Africa is a high-risk destination, a place for doing charity not reaping returns. Africans are not asking to be rescued. The continent’s long-term fundamentals — demographics, resources, and innovation — are among the strongest in the world, and green investments are well positioned to deliver measurable economic, environmental, and social returns, for Africa and the wider world.

If Africa is empowered to advance its green industrialization, it will be able to make major contributions to global climate stability, food security, and sustainable economic growth. If the continent is left behind, climate change will continue to accelerate, supply-chain disruptions will proliferate and global instability will intensify.

At the UN Climate Change Conference, COP30, in Belem, Brazil, in November, the world will define the next phase of climate and development action. But one thing is already clear: the road to a stable climate and an equitable global economy runs through Africa. Rather than attempt to bypass it, and risk never reaching our shared destination, governments, investors, innovators, development partners, and all who believe in a greener future must arrive in Addis Ababa next month ready to deliver resources where they are needed most.

• Fitsum Assefa Adela, minister of planning and development of the Federal Democratic Republic of Ethiopia, is designated national coordinator for the Second Africa Climate Summit. ©Project Syndicate