Africa represented less than 1% of global GSS bond issuances in 2024, with volumes dropping to just $1.35bn – down 25% from 2023. Despite Morocco issuing seven green bonds worth $500 million, most issuances remain one-off transactions. Notable niche issuances include Nigeria’s $30 million sovereign green sukuk (2017), Seychelles’ pioneering $15 million blue bond (2018), and Gabon’s $500 million debt-for-nature swap (2023), but such green sukuk and blue bonds are rarely replicated at scale. Domestic institutional participation meanwhile is minimal, hindered by FX volatility, and the absence of a regional green taxonomy. How can Africa move from isolated GSS bond deals to a scalable climate finance ecosystem integrated into national development strategies?
Key points:
- Beyond green bonds for climate mitigation: How to scale financing solutions for maritime climate risks, port financing, climate adaption and social development?
- What role can Islamic finance, via green sukuk, play in mobilising regional capital for climate-aligned infrastructure projects?
- Which incentives, de-risking tools (e.g. guarantees, tax incentives), and pipeline development strategies are essential to scale climate-themed bonds beyond initial pilots?