The Climate Director-General of the Securities and Exchange Commission, Emomotimi Agama, has emphasized the urgent need for Africa to secure over $100 billion annually to bridge the climate adaptation financing gap. He made this appeal during his presentation titled “The Role of Capital Markets in Closing Financing Gaps for Climate Adaptation,” delivered at a recent African Development Bank meeting.
In a statement shared with our correspondent, Agama cited expert data, highlighting that although Africa contributes less than 4% of global greenhouse gas emissions, it suffers over 25% of climate-related damages. He cautioned that the continent could face an annual financing shortfall of up to $100 billion for climate adaptation efforts by 2030.
Agama further referenced the 2022 Africa Economic Outlook by the AfDB, which estimates that Africa will require around $500 billion in climate finance by 2030. Additionally, he noted that more than $3 trillion would be needed for mitigation and adaptation investments to meet the continent’s Nationally Determined Contributions.
Agama underscored that these numbers are not just abstract data; they reveal a stark and growing divide between vulnerability and resilience in Africa. “They represent real human struggles: livelihoods disappearing in the Sahel, declining fish stocks in the Gulf of Guinea, and worsening floods in cities like Lagos and Nairobi,” he remarked.
Referencing the 2023 United Nations Environment Programme Adaptation Gap Report, Agama pointed out that developing countries will need between $212 billion and $387 billion annually by 2030 to adequately adapt to climate change.
“For Africa, the challenge is even more daunting,” he added, “with the adaptation financing gap estimated to be up to 50 times greater than current funding levels.”
The SEC chief urged project developers and private sector participants to bring forward viable, investment-ready projects with strong environmental and social credentials. He noted that Africa’s capital markets can play a crucial role in narrowing the climate financing gap by fostering market integration, standardizing regulations, and embracing the framework set by the International Sustainability Standards Board (ISSB).
“Addressing the climate adaptation financing gap in Africa is not a distant ambition but a pressing development necessity that demands our shared creativity and capital,” Agama stressed.
He pointed to Nigeria’s pioneering issuance of its sovereign green bond in 2017, the first in sub-Saharan Africa, which was oversubscribed by 2.5 times, driven mainly by Nigerian pension funds and diaspora investors. This achievement, he said, demonstrates that local institutional capital can be unlocked for climate-focused initiatives when effective financial tools and regulatory certainty are provided.
