Green Industrialisation in Africa: Sustainability Week Africa 2025

Hosted by Economist Impact, the second Sustainability Week Africa brought together policymakers, business leaders, researchers, and civil society to chart a path toward a climate-resilient and economically vibrant Africa. Held in Cape Town from 30 to 31 October, the summit’s theme of “Green Industrialisation: Building Africa’s Future Through Sustainable Innovation” emphasised a growing consensus: Africa’s industrial future must be sustainable, inclusive, and driven by strategic partnerships. 

Green industrialisation is the process of developing industries that are low-carbon, resource-efficient, and environmentally sustainable, while also driving economic transformation. It integrates climate goals with industrial policy, ensuring that growth does not come at the expense of ecosystems or communities. For Africa, this means shifting from extractive to regenerative industries, investing in and scaling renewable energy and circular manufacturing, creating green jobs and climate-smart infrastructure.  

Several key trends emerged at the Summit: 

1. The Power of Renewables 

Affordable and reliable energy is vital for Africa’s economic growth and industrialisation. But limited energy generation, under-developed grids and continued reliance on fossil fuels present a challenge. However, the tide is turning. Renewable energy (especially in the form of solar energy) is on the rise, with imports of solar panels from China increasing by 60% over the past year. Led by the World Bank and African Development Bank Group, the launch of Mission 300 earlier this year signals interest in developing renewable energy in Africa from governments, private investors and multilateral financial institutions. Opportunities and challenges lie ahead. An increase in renewable energy imports could potentially hamper the local manufacturing of these tools. The use of natural gas a ‘bridging’ fuel could compromise pledges to reduce emissions and transition away from fossil fuels. Still, the Summit painted an optimistic picture of what lies ahead for Africa’s energy future. 

2. Public-Private Partnerships 

National governments are duty-bound to implement and support sustainable development agendas. After all, they establish the conditions, frameworks and regulations necessary to promote sustainable development. However, governments cannot do this alone. Buy-in from the private investors is essential for green industrialisation and development. Public-Private Partnerships combine the best of both worlds, leveraging the innovation and experience of the private sector alongside the structure and facilitation that governments can provide. Despite impressive growth in private investment, the continent’s private equity and venture capital remain underdeveloped.   

3. Financing sustainability 

Panel discussions highlighted the need for different financial mechanisms to fund green industrialisation.  Development finance for African countries has been hit hard by foreign aid cuts, but countries and communities can adapt. Philanthropy, multilateral institutions and national loans can fill the vacuum, but there are also opportunities for new revenue streams. Several African countries (including South Africa, Kenya and Morocco) have issued green bonds in a bid to reduce the climate finance gap. Carbon credits are an increasingly attractive option, enabling communities and countries to mobilise climate finance. Ultimately, there are tools and mechanisms available for African countries to generate the financing necessary. The success of these mechanisms relies in part on creating economic environments conducive for investment, prioritising transparency and accountability, and ensuring that local communities reap the rewards.  

Africa is at a pivotal moment. By embracing green industrialisation, the continent can unlock climate-smart growth, create millions of jobs, and position itself as a leader in sustainable development.