Africa’s Future Lies in Green Investment – MoPD Minister

Addis Ababa, August 29, 2025 (FMC) — Green investment is the key to unlocking Africa’s vast potential as a hub of opportunity and innovation amid intensifying climate challenges, Ethiopia’s Minister of Planning and Development, Fitsum Assefa, has said.

In an article published on *Project Syndicate* on August 28, 2025, under the title *“Africa’s Green Economy Is a Good Investment,”* the minister argued that Africa should be seen not as a continent of charity but as a destination for smart, high-return investment.

She noted that the upcoming Addis Ababa Climate Summit, scheduled for September, will be a decisive moment for the continent to position its green economy as a wave of investment “just waiting to be unleashed.” The gathering will bring together heads of state and government, scientists, private-sector leaders, civil society, youth, and development partners to chart a new path for climate action and green growth in Africa.

Citing African Development Bank data, Fitsum highlighted the urgency of climate risks, with droughts, floods, and extreme weather already reducing the continent’s GDP by 5 to 15 percent annually. At the same time, Africa holds 60 percent of the world’s best solar resources but accounts for only 1 percent of global solar capacity and attracts just 3 percent of global energy investment.

She pointed to Ethiopia’s progress as an example of the continent’s potential. The country’s national grid runs almost entirely on renewable energy, led by hydropower. The Grand Ethiopian Renaissance Dam (GERD) is currently generating 2,350 megawatts, with full capacity set to reach 5,150 MW, while also supplying electricity to neighboring countries such as Djibouti, Kenya, Sudan, and Tanzania.

Beyond Ethiopia, she highlighted flagship renewable projects across Africa, including Gambia’s 23 MW Jambur Solar Power Station, South Africa’s 330 MW Impofu Wind Complex, and Kenya’s solar-powered green ammonia production initiative.

The minister said that new frameworks such as the forthcoming Africa Green Industrialization Initiative and the ACS2 Flagship Report will help scale up such projects with the backing of governments, private investors, and development finance institutions.

Challenging the traditional narrative of Africa as aid-dependent, Fitsum stressed: *“Africans are not asking to be rescued. Our continent’s young demographics, abundant resources, and innovation make green investments among the most promising worldwide.”*

She further underlined Africa’s indispensable role in global climate solutions, declaring that *“the road to a stable climate and fair economy runs through Africa.”*

As leaders and investors prepare to convene in Addis Ababa next month, she said they face a defining choice: invest in Africa’s green economy to drive sustainable growth, or risk deepening climate instability and missed opportunities.