Africa needs more green financing to unlock growth: report

Infrastructure deficits, climate change, and debt sustainability challenges are holding Africa back from unlocking its growth potential, S&P Global said in a new report.

The continent is poised to play an important role in the energy transition with its natural resources, young population, and expanding middle class. But to unlock this potential Africa needs more green financing, stronger capital markets, and better regional integration, the company said.

Productivity growth in Angola, Nigeria, South Africa, and Zambia has slowed over the last decade, S&P noted, as infrastructure development and maintenance have not kept up with the needs of expanding populations. The increased demand for energy transition minerals could boost productivity growth in resource-rich economies while others need government reforms that improve the business environment and draw investment, it said.

A chart showing the average annualized real GDP growth for select African countries, pre-pandemic, and then post-pandemic.

— Preeti Jha