African nations are looking beyond pledges from developed countries, turning to private investment to shield their economies from mounting climate risks, as reported by Bloomberg. 

While the continent accounts for just 4% of global greenhouse gas emissions, its communities face some of the most severe consequences, including floods, droughts, and cyclones that threaten livelihoods and infrastructure.

Leaders attending the second Africa Climate Summit in Addis Ababa warned that climate finance is “a legal obligation and not charity,” as defined under the United Nations Framework Convention on Climate Change and the Paris Agreement. Yet, investments in adaptation are falling, and reductions in development assistance from Europe and the United States have intensified the shortfall. Africa alone will need an estimated $500 billion by 2030 to strengthen infrastructure, install early warning systems, and support farmers with irrigation and drought-resistant crops, according to the Global Center on Adaptation.

Ethiopia showcased the continent’s potential to generate green energy with the inauguration of its $4.8 billion hydroelectric dam, Africa’s largest, capable of producing 5,150 megawatts at full capacity. While hydropower offers low-carbon energy, environmental activists caution about the impact on river systems.

Speaking at the summit, Ethiopian Prime Minister Abiy Ahmed proposed a $50 billion African Climate Innovation Compact to fund solutions in energy, agriculture, water, and transport. “Too often, Africa’s story at climate summits begins with what we lack. Let us begin instead with what we have,” he said, highlighting the continent’s arable land, critical minerals for green technologies, and abundant renewable energy sources.

The summit statement urged African nations to mobilise private capital for green industrialisation, energy transitions and climate finance for adaptation. Abiy’s message was clear: the era of relying on climate aid is over. “It is time to replace climate aid with climate investment,” he said, signalling a shift toward self-directed, market-driven solutions.