The Just Transition was central to discussions during the recently concluded Finance in Common Summit 2025 held in Cape Town. At the core of the concept is ensuring that Africa’s shift to a greener economy is not only environmentally responsible, but also socially and economically inclusive, accelerating solutions for sustainable finance in Africa.
Director General Leila Farah Mokaddem of the Southern Region at the African Development Bank Group speaking at the FICS 2025, Cape Town.
Global leaders, policymakers, and development finance institutions gathered in Cape Town for the fifth summit, co-hosted by the Development Bank of Southern Africa (DBSA) and the Asian Infrastructure Investment Bank (AIIB) with the support of Agence Française de Développement (AFD) and the African Development Bank.
Speaking on the Just Transition during a session on Wednesday 26 February, Leila Mokaddem, Director General for Southern Africa at the African Development Bank, emphasised that Africa’s path to sustainability must be fair, inclusive, and pragmatic.
“With 600 million Africans still without electricity, our transition cannot be about climate targets alone. It must be about jobs, industrialisation, and economic opportunity. If we fail to get this right, the transition could deepen inequality rather than reduce it.”
To ensure the transition benefits all, the African Development Bank supports policy frameworks and financing strategies that enable equitable development. Investments in youth employment and skills development are central to the strategy, preparing Africa’s workforce for the green economy and mobilising public and private investment to create new economic opportunities. The bank is also strengthening social protections to prioritise the most vulnerable, including women, informal workers, and marginalised communities.
Through its Jobs for Youth in Africa (JfYA) Strategy (launched in 2016), the African Development Bank aims to create 25 million jobs and equip 50 million young Africans with the skills needed for the green economy by 2025. In partnership with the ILO, a Just Transition job marker system is being developed to ensure that climate investments translate directly into employment opportunities.
Mokaddem highlighted South Africa’s coal-dependent economy as a case study for why careful planning is critical.
“If we do not manage this transition properly, we risk economic instability, job losses, and deepening poverty. We must ensure that workers and communities dependent on fossil fuels are not left behind.”
In South Africa, where coal remains a key energy source, the bank has committed UA 2.5 billion to support a Just Transition – investing in renewable energy, worker retraining, and energy governance reforms to minimise economic disruption.
Vice President Nnenna Nwabufo - for the Regional Development, Integration and Business Delivery at the African Development Bank Group, moderating a session at the summit.
African Development Bank Vice President Nnenna Nwabufo underscored the urgency of scaling climate finance to support Africa’s sustainable future.
“Africa is at a turning point. We are facing a climate crisis that affects our economies and the lives of millions of people.”
She highlighted Africa's stark financial challenge, needing $2.7 trillion by 2030 to meet its climate goals, yet only 23% of this funding is currently in place. To bridge this gap, the African Development Bank is advancing bold initiatives such as the Climate Action Window, which aims to raise $14 billion to provide low-income African nations with easier access to climate finance. The Desert to Power Initiative, a $20 billion project, will generate 10 GW of solar energy across 11 Sahelian countries, bringing clean electricity to 250 million people while reducing reliance on fossil fuels.
“Africa does not want aid – we want partnerships. We need investment enabling our nations to take ownership of their development, fostering resilience, self-sufficiency, and sustainable growth that benefits Africa and the global economy,” Nwabufo added.
Both leaders emphasised that achieving a Just Transition requires bold action, global cooperation, and significant investment.
“Africa has an opportunity to build a resilient, sustainable future, but we cannot do it alone,” Nwabufo urged. “We need financial institutions, governments, and the private sector to invest in Africa’s green economy.”
For more information visit: www.afdb.org