“Africa holds the key to the world’s green future – but without fair financing, that key may never turn.”
By Ethical Business Reporter
By 2030, African economies must invest nearly a third of their total GDP to meet renewable energy targets – more than double the burden on other emerging markets, and eight times more than wealthier nations. That stark reality was laid bare by Yann Le Pallec, President of S&P Global Ratings, at the 2025 S&P Global South Africa Conference in Johannesburg on June 4.
“African countries are not only on the frontlines of climate impacts—they’re also critical players in solving the global climate puzzle,” Le Pallec said. “Without a strong global push to bridge the financing gap in low-income nations, we risk derailing the world’s energy transition.”
Yann Le Pallec, President of S&P Global Ratings, says without urgent global financing, Africa’s climate transition, and the world’s stability, hangs in the balance. IMAGE: The Telegram.
A disproportionate burden
While developed nations in the G7 can hit their green energy targets with investments amounting to just 4% of their GDPs, African countries must marshal more than 30%—a figure that highlights the deep inequality in climate finance access.
Yet despite this uphill battle, Le Pallec underscored a key point: Africa’s energy future is the world’s energy future. Failing to close the transition and adaptation financing gap, he warned, could ultimately destabilize the entire global financial system.
Signals of hope
Le Pallec pointed to encouraging signs of innovation and ambition across the continent. South Africa, as current G20 president, is using its platform to spotlight creative solutions to the interlinked crises of climate and debt. South African banks, particularly FirstRand, Standard Bank, and Absa, are leading with green bond issuances in local currency.
Meanwhile, Rwanda Development Bank is making headlines of its own. In collaboration with the World Bank, it launched its first-ever sustainability-linked bond, designed to boost ESG standards while unlocking capital for women-led SMEs and affordable housing.
“Our assessment found that Rwanda’s targets are closely aligned with global sustainability-linked bond principles,” Le Pallec noted.
Private sector, public leadership
Still, public and private sectors must act in tandem. “Private sector capital is essential – but it needs the confidence that only strong governance and multilateral support can provide,” Le Pallec stressed.
He called for African-led multilateral institutions to step up as catalysts for intra-African trade and capital market development, unlocking the kind of cooperation that can redefine the continent’s energy trajectory.
The bottom line
If Africa is to rise to the challenge, it will not be through aid alone. It will require bold leadership, homegrown financial innovation, and a radical shift in how the world views climate finance justice.
As Le Pallec put it: “No global energy transition can succeed without Africa. And Africa cannot succeed without the world stepping up.”
