In the lead up to the Africa Climate Summit 2025, the African Union in collaboration with Global Health Strategies, concluded a recent session of its “Fridays of the Commission” series. The session, led by the Department of Economic Development, Trade, Tourism, Industry, and Minerals (ETTIM), served as a precursor to the Summit, which was held from 08–10 September, and focused on Climate Finance, providing a platform for AU Member States, civil society, academia, the private sector, and development partners to exchange perspectives on Africa’s development priorities. This edition centered on the theme “Future-Proofing Climate Finance for Africa: The Case for Adaptation Finance.”
The meeting brought together stakeholders to discuss Africa's adaptation finance imperative, exploring opportunities for scalable solutions, African-led climate finance mechanisms, and innovative blended finance approaches to mobilize private capital for adaptation. The discussions resulted in a set of recommendations that will be championed at these critical international forums, including COP30 in Belém, Brazil.
The session highlighted the urgent need for a fundamental shift away from debt-creating instruments, with a strong call for grant-based and concessional finance. This was rooted in the recognition that many African nations are already facing unsustainable debt burdens, making it unjust and impractical to borrow to finance a crisis they did not create.
Participants drew attention to the financial injustice faced by Africa, noting that many Least Developed Countries (LDCs) are borrowing for climate adaptation, contrary to the principles of the Paris Agreement. With some countries' debt servicing consuming a third of their national budgets, a unified call was made for external finance to be channeled directly through African-owned institutions. The principle of Common but Differentiated Responsibilities was a central theme, stressing the need for global partners to acknowledge and correct historical injustices.
The conversation addressed the complexities of attracting private capital and reforming the global financial architecture. Participants discussed the challenges of finance for adaptation projects, which often lack immediate commercial returns. Hence, there is the need for blended finance to derisk projects, including by leveraging insurance companies, pension funds and eco-tourism. Participants highlighted the need for stronger governance and clear Key Performance Indicators (KPIs) for African Development Finance Institutions (DFIs) to ensure they take on more risk in line with their mandates, mobilizing private and public capital from within the continent itself and actively contribute to adaptation finance. He also identified the immense potential of
One major area of importance was the need for monitoring and accountability to ensure finance flows effectively reach communities where they are most needed. This is linked to conducting comprehensive needs assessments, and the inclusion of vulnerable groups in all climate actions.
The panelists agreed on the necessity of a unified African voice and collaborative partnerships to leverage forthcoming platforms like the Africa Climate Summit (ACS) and COP30. The outcomes of these discussions will directly feed into Africa's common position at the upcoming Africa Climate Conference in Addis Ababa and at COP30 in Brazil. The following recommendations were made:
-
Advocating for the urgent reform of African multilateral development banks (MDBs) and development finance institutions (DFIs) to take on greater risk and prioritize adaptation finance, and for these institutions to adopt key performance indicators (KPIs) tied to adaptation finance.
-
The need for a common, transparent definition of climate finance and robust accounting mechanisms to ensure that funds promised actually reach the communities most in need. This is a direct response to the ambiguity and lack of accountability that has plagued previous climate finance pledges.
-
The need to channel external climate finance through African-owned and African-led institutions to ensure that solutions are locally relevant, effective, and sustainable.
-
Amplifying the demand for climate justice, including funding for loss and damage, and ensuring that the needs of marginalized communities, women, youth, and persons with disabilities are at the forefront of the discussions.
-
Promoting innovative financial instruments that can reduce Africa’s debt burden while simultaneously freeing up resources for climate action.
The African Union Commission is pleased to announce that the next session of the "Fridays of the Commission" will take place on 12th September 2025, on the theme: "Investment in Africa: Dynamics, Drivers, Challenges and the Contribution of the Africa Virtual Investment Platform (AVIP)."
For further information, please contact:
Ms. Faith Adhiambo | Communication | Directorate of Information and Communication| African Union Commission | E-mail ochiengj@africanunion.org
