Beyond Recovery: Africa’s Green Economy and the Imperative of a Just Transition

Five years after the onset of the COVID-19 pandemic, Africa’s journey toward a green economy and a just transition has made encouraging progress, though significant challenges remain. The pandemic represented the most significant global disruption in recent memory, impacting health systems, livelihoods, and particularly vulnerable communities across the continent. It deepened existing inequalities and disrupted efforts to address climate change and develop a sustainable green sector. Africa, already disproportionately affected by the effects of climate change, received inadequate climate finance during this period. Yet, despite the hardships, the pandemic also presented an opportunity to reimagine a post-pandemic economy grounded in resilience and sustainability.

The Disruptions: Economic Shocks and Socio-Environmental Setbacks

The global supply chain disruptions affected Africa severely, as the continent relies on external markets for over 70% of its trade. This stunted economic growth and hindered investment in key infrastructure, such as energy access in rural and informal settlements leaving an estimated 13 million more people energy-insecure in 2020 alone. Food security also became a critical issue, particularly for small-scale farmers who faced market restrictions and ongoing climate shocks such as floods and droughts. These challenges intensified hunger, especially in regions like Eastern and Southern Africa. Meanwhile, unemployment surged due to declining economic growth, especially within the informal sector, which accounts for nearly 85% of the continent’s economy. These compounded impacts made it even more difficult to pursue and commit to green sector development.

The Green Turn: Catalysing Resilience Through Green Recovery

Despite these difficulties, the pandemic laid bare the urgent need for climate-resilient development that promotes local solutions and long-term sustainability. In response, a number of African countries began to adopt green recovery plans focused on renewable energy, sustainable agriculture, and nature-based solutions. Clean energy investments have increased substantially, reaching over US$40 billion across the continent. There has been a clear shift towards off-grid energy access, circular and blue economy strategies, and support for youth- and women-led green enterprises. Major initiatives such as Mission 300, the African Union’s Blue Economy Strategy, and the implementation of the African Continental Free Trade Area (AfCFTA) reflect this momentum. At the same time, global institutions such as the World Bank and African Development Bank have committed billions in funding for green investments and infrastructure.

African governments have also made renewed commitments under the Paris Agreement, with several updating and enhancing their Nationally Determined Contributions (NDCs), and exploring carbon markets as a mechanism to attract finance and reduce emissions. There is a growing push for greater equity in climate finance to support Africa’s development and resilience goals.

A Just Transition: Embedding Equity in Climate Action

Perhaps most importantly, the pandemic exposed the vulnerabilities of global economic systems and the specific fragility of developing regions such as Africa. It demonstrated the importance of embedding social justice at the core of climate action. A Just Transition is central to this vision, ensuring that as economies decarbonise, no one is left behind. It calls for aligning environmental sustainability with socioeconomic equity, supporting the most vulnerable, and fostering green jobs, green skills, and inclusive policies. This means putting people at the heart of the green economy transformation.

The Path Forward

Looking ahead, Africa’s green economy must be built on a foundation of equity, resilience, and innovation. The Africa Green Economy Summit 2025, held in Cape Town, highlighted the growing consensus among governments, private sector actors, and civil society on the need to accelerate investment in climate-resilient infrastructure and inclusive green growth. The Summit served as a crucial platform for discussing how to catalyse finance and innovation to unlock the potential of Africa’s green and blue economies. Key discussions focused on scaling up renewable energy access, building climate-resilient food systems, advancing nature-based solutions, and mobilising capital to support green entrepreneurship, especially among youth and women.

Despite the progress made in recent years, considerable challenges persist. Economic recovery across the continent has been uneven, and growth has not yet returned to pre-pandemic levels. Millions remain without reliable access to energy, and many regions continue to experience the devastating effects of climate-related disasters. Significant investment both public and private is still required to bridge these gaps and to support the implementation of NDCs, carbon markets, and locally driven climate adaptation efforts.

Furthermore, ensuring that the transition to a green economy is just and inclusive remains one of the most pressing concerns. It is vital that no community is left behind as Africa embraces low-carbon development. This includes supporting workers in high-carbon sectors to retrain for green jobs, investing in education and skills development, and creating an enabling environment for small and medium enterprises (SMEs) to thrive in the green economy. Social protection mechanisms must also be strengthened to cushion vulnerable communities from the immediate shocks of climate impacts and economic transitions.

To move forward, coordinated efforts are needed at all levels, from local governments and grassroots innovators to regional institutions and international donors. Africa must also play a more assertive role in global climate negotiations to secure adequate climate finance and equitable access to green technologies. Platforms like the Africa Green Economy Summit, the African Union’s Agenda 2063, and COP processes provide critical opportunities to align national priorities with global ambitions.

Ultimately, the path forward must be one of inclusive, sustainable, and climate-resilient growth, where environmental sustainability goes hand in hand with socioeconomic justice. With the right investments, partnerships, and policies in place, Africa has the opportunity not only to recover but to lead in shaping a green economy model that is both just and transformative for generations to come.

 

Author: Kennedy Simango

Research Analyst

 

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