Africa is staring down a climate finance chasm of over $100 billion per year by 2030, as the continent battles rising climate-related losses and lagging investments in adaptation. The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, made this sobering revelation during his presentation at the African Development Bank (AfDB) Annual Meetings.
Agama, speaking on “The Role of Capital Markets in Closing Financing Gaps for Climate Adaptation,” warned that although Africa contributes less than four per cent to global greenhouse gas emissions, it disproportionately suffers more than 25 per cent of the resulting climate-related damages. From persistent droughts in the Sahel to intensified flooding in Lagos and Nairobi, climate disasters are increasing in both frequency and economic cost.
According to AfDB’s 2022 Africa Economic Outlook cited by Agama, the continent will require around $500 billion in climate finance by 2030. This includes an estimated $3 trillion in mitigation and adaptation investments necessary to meet the continent’s Nationally Determined Contributions (NDCs) under the Paris Agreement.
“These are not just statistics,” Agama said. “They represent devastated livelihoods, food insecurity, displaced communities, and the collapse of biodiversity across entire ecosystems.”
The SEC boss cited the 2023 UN Environment Programme’s Adaptation Gap Report, which estimates that developing countries will need between $212 billion and $387 billion annually for climate adaptation by 2030. For Africa, the shortfall is particularly severe—up to 50 times current levels of funding.
Dr. Agama called for urgent mobilisation of Africa’s capital markets to bridge the massive funding gap. He stressed the need for innovative instruments, improved regulatory frameworks, and credible climate-related disclosure practices that align with the International Sustainability Standards Board (ISSB) framework.
“Capital markets can unlock large-scale private sector investments into green infrastructure, sustainable agriculture, renewable energy, and climate resilience,” Agama said. “We must work towards market integration, harmonised ESG standards, and adoption of the ISSB’s IFRS S1 and S2 standards to make this happen.”
Nigeria, he added, has already taken pioneering steps. In 2017, the country launched the first sovereign green bond in sub-Saharan Africa, which was oversubscribed by 2.5 times, driven by domestic pension funds and diaspora investors.
“Local institutional capital is available,” Agama noted. “What we need are bankable projects, de-risking tools such as credit enhancements, and investor confidence built on transparency.”
The SEC also plays an integral role in Nigeria’s roadmap for adopting the ISSB standards. Voluntary implementation of the IFRS sustainability standards is already in motion, with mandatory compliance slated for 2027. Agama described these frameworks as “game-changers” in elevating investor confidence and ensuring accountability in climate-related investments.
Beyond national efforts, Agama advocated for deeper regional collaboration across African capital markets. He called on regulators, investors, and governments to embrace a unified approach that will attract both domestic and foreign investments into climate adaptation.
“Closing Africa’s climate finance gap is not an option—it is a development necessity,” he said. “Our continent cannot afford to wait. The time to act is now.”
He also underscored that public-private partnerships (PPPs), green bonds, sustainability-linked loans, and climate-focused private equity can form a comprehensive climate finance ecosystem that delivers both resilience and returns.
Recent studies from institutions like the International Monetary Fund and World Bank have highlighted the disproportionate climate risk facing Africa, despite its minimal carbon footprint. Countries such as Nigeria, Mozambique, and Kenya are already recording substantial GDP losses from flooding, heatwaves, desertification, and crop failure—challenges that will intensify without adequate adaptation finance.
Climate scientists have warned that without accelerated investments in adaptation, Africa may face irreversible social and economic setbacks. This includes food crises, population displacement, weakened healthcare systems, and stunted industrial development.
As Africa edges closer to a climate tipping point, the call from the SEC DG is both timely and urgent. The mobilisation of capital markets, policy alignment, and international cooperation are critical to financing the continent’s adaptation goals. As Agama succinctly put it, “This is our defining moment—to finance the future of our people and our planet.”