Afreximbank Advocates for Enhanced Collaboration to Accelerate Africa’s Green Energy Transition

Samuel Mobolaji

Afreximbank is calling for increased collaboration among African nations to achieve a sustainable green energy transition, as highlighted during the eighth Babacar Ndiaye Lecture held at the Four Seasons Hotel in Washington D.C. on 26 October 2024.

The event underscored the urgent need to balance short-term development priorities with long-term climate goals.

Titled “Saving Lives Today versus Saving the Planet for the Future: Can the AfCFTA Resolve the Climate Change Dilemma?”, the lecture explored how the African Continental Free Trade Area (AfCFTA)—the continent’s most ambitious trade initiative—can drive economic growth and environmental sustainability, positioning Africa as a leader in the global green transition.

The event attracted a distinguished audience of policymakers, academics, financial experts, and climate advocates. In his opening remarks, H.E. Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank Group, reflected on Dr. Babacar Ndiaye’s legacy and his deep concerns regarding climate change.

He stated, “Climate change is the greatest threat to development, particularly in Africa, where millions depend on the environment for their livelihoods. Africa’s economic transformation cannot happen without addressing climate change.”

Professor Oramah highlighted the critical challenges posed by the global climate debate, which often prioritises emissions reduction at the expense of developing nations.

He warned that calls for Africa to decarbonise could hinder the socio-economic development of a gas-rich continent, home to over 600 million people without electricity.

The AfCFTA was presented as a potential solution to this dilemma. By promoting local industrialisation, the agreement could reduce carbon emissions associated with transporting raw materials for processing abroad.

“The AfCFTA could offer a pathway to a just transition, enabling local industrial value addition while protecting the planet,” he added.

Professor Yemi Osinbajo, SAN, GCON, former Vice President of Nigeria, delivered a compelling address titled “Sustainable Infrastructure for Africa’s Future: Harnessing Innovation and Partnerships.”

He passionately discussed the AfCFTA’s potential to transform Africa’s trade landscape, lower carbon emissions, and stimulate innovation in green industries.

Osinbajo pointed out that 42% of African nations have enacted legislation prohibiting the export of unprocessed raw materials, allowing for job creation and revenue generation from local manufacturing.

He emphasised that intra-African trade in finished goods would significantly cut down on shipping-related carbon emissions. Referring to a recent ECA/CEPII study, he noted that implementing the AfCFTA could boost intra-African trade by 35 per cent by 2045 while only increasing greenhouse gas emissions by less than one per cent.

The lecture also featured insights into renewable energy’s role in reducing production costs. Osinbajo illustrated this with the example of Guinea, which possesses 25 per cent of the world’s bauxite reserves. By processing its bauxite into aluminium using renewable energy, Guinea could prevent 335 million tonnes of carbon dioxide equivalent emissions annually and create thousands of jobs.

H.E. Dr. Rania A Al-Mashat, Minister for Planning, Economic Development and International Co-operation of Egypt, underscored Africa’s disproportionate burden in financing climate change impacts despite being the least responsible for carbon emissions.

She called for greater collaboration among national and international stakeholders to accelerate Africa’s sustainable development efforts.

In her Goodwill Message, Ms. Amina J. Mohammed, Deputy Secretary-General of the United Nations, warned of the rapidly closing window to mitigate climate change’s worst effects.

She emphasised that access to affordable financial resources is vital for harnessing renewable energy to stimulate economic growth and development, particularly for the over 600 million Africans lacking electricity.