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From Juliana Taiwo-Obalonye, Abuja
Africa faces an estimated $247 billion annual climate financing shortfall, with only about $30 billion available against the $277 billion required yearly to meet the continent’s climate commitments, Sahara Power Enterprise Group has said.
Group Managing Director of Sahara Power Enterprise Group, Kola Adesina, disclosed this at a United Nations General Assembly (UNGA) roundtable on Sustainable Global Investment, Economic Resilience and Climate Financing.
He warned that closing the gap would require substantially greater mobilisation of private and institutional capital alongside investment in Africa’s productive sectors.
Adesina said climate financing alone could not address the continent’s development challenges, arguing that investment must simultaneously flow into energy, infrastructure, industry, agriculture and enterprise development.
“Africa’s most pressing challenge is expanding its productive capacity at scale. We need sustained investment in energy, infrastructure, industry, agriculture, and enterprise development to create jobs, strengthen competitiveness, and support long-term resilience,” he said.
According to him, the climate financing deficit is compounded by Africa’s infrastructure gap, with almost 600 million people in sub-Saharan Africa still without access to electricity and the continent facing an estimated annual infrastructure financing shortfall of between $68 billion and $108 billion.
He said climate finance should therefore be treated as an instrument for strengthening wider economic resilience as African countries grapple with droughts, floods, extreme heat and other climate-related shocks.
Adesina noted that although Africa contributes less than four per cent of global greenhouse-gas emissions, the continent remains highly vulnerable to the effects of climate change.
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“Africa requires substantial investment not only to grow, but also to protect the infrastructure, businesses, food systems, and communities that underpin development,” he said.
He argued that the size of the global investment market provided an opportunity for Africa to bridge some of its financing deficits, noting that foreign direct investment reached approximately $1.6 trillion in 2025, while assets linked to sustainable investment strategies rose to $16.7 trillion globally.
Adesina said African countries must position themselves to secure a greater share of available capital by improving project preparation, strengthening investment frameworks and developing financing structures capable of turning investor interest into bankable projects.
He also called for greater mobilisation of African institutional capital, deeper local-currency financing markets and stronger regional cooperation in energy, transport and logistics infrastructure.
Adesina said Sahara’s investments in LNG, LPG, gas-to-power infrastructure and logistics reflected its approach of combining energy investment with longer-term sustainability objectives.
He added that the company was pursuing a net-zero ambition by 2060 through gas infrastructure development, renewable energy integration and nature-based solutions.
According to him, the ultimate test of investment in Africa should be its capacity to deliver jobs, productive enterprises, reliable infrastructure and sustainable economic growth.
“Africa’s opportunity lies in building resilient prosperity, where investment translates into productive capacity, jobs, reliable infrastructure, and sustainable economic growth that endures for generations,” he said.
