It is time to unlock Africa’s green bond market potential

Africa’s green bond market accounts for less than 1% of the global market, but around $9.6 billion has been raised through 76 issuances by about 40 entities, according to FSD Africa. Nigeria led the way with its first sovereign green bond in 2017, followed by issuers including Egypt, Kenya, Morocco, Namibia and South Africa. The bonds can finance renewable energy, clean transport and climate-resilient infrastructure while bringing in capital to meet the continent’s climate needs. Growing the market will require clearly defined eligible projects, transparent frameworks, and reporting on proceeds and environmental impacts.