Developing Africa’s Green Bond Market: Unlocking Investment and Economic Growth

Welcome to your October edition of the Africa Bulletin.

This month, we focus on the development of Africa's green bond market and its potential to drive investment in economic growth. As Africa faces the dual challenges of climate change and economic development, the investment landscape is shifting rapidly toward environmental sustainability. Green bonds have emerged as a promising financial instrument with the potential to accelerate sustainable growth across the region.

Our focus also delves into major African business headlines impacting the region and the globe. These stories are complemented by reports on Africa’s finance and investment landscape, green energy, sustainable development, and mergers and acquisitions.

As always, we’ve curated news stories to help you navigate today’s business landscape, providing a global perspective on legal issues relevant to your industry.

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Top Story

Africa remains the most vulnerable region to climate change with most countries lacking the resources to implement climate mitigation measures and infrastructure. ?As Africa contends with climate change and economic development, the investment landscape is also shifting rapidly towards environmental sustainability.

In response to these shifts, green bonds have emerged as a promising financial instrument poised to catalyse sustainable growth across the region. They offer several benefits, notably, they provide additional sources of finance, diversify the investor base, attract ESG and new sources of public climate finance specifically dedicated to green bonds, and offer portfolio diversification for investors...Read more .

Stories that Matter

1. East Africa | East Africa Leads Africa’s Economic Recovery?- The degree of economic recovery in 2024 has differed greatly across Africa and the continent’s subregions. However, East Africa remains the most notable subregion, with the highest economic growth rate...Read more
2. Algeria / Niger | Algeria and Niger in Talks to Revive Saharan Gas Pipeline - Top energy officials from Algeria and Niger recently met in Algiers to revive plans to complete construction of a USD 13 billion pipeline that would transport gas from Nigeria to the Mediterr...Read more
3. Egypt | Egypt Poised to Lead Wind Energy in the Middle East with 76 GW Capacity by 2050 -Egypt is positioned to become a leading force in wind energy within the Middle East, generating an excess of 76 gigawatts per hour by 2050, according to an...Read more
4. Kenya | Kenya Leads Africa in Startup Funds Raised - Kenya has emerged as the leading African country in startup funding, raising USD 437 million, which represents 31 percent of total funds raised on the continent, according to data from Africa: The Big Deal. The...Read more
5. Morocco | Morocco’s FDI Boom Gains Momentum with Major Projects on the Horizon - Morocco is consolidating its appeal as a prime foreign direct investment (FDI) destination, with a growing focus on the automotive and green hydrogen sectors. The 2025 finance...Read more
6. South Africa | SA Climbs UN E-Government Index Rankings to Lead Africa’s Digital Transformation - South Africa has rocketed up the rankings in the United Nations (UN) e-Government Index for 2024, climbing from 65 in 2022 to an impressive 40 out of...Read more
7. Tanzania | Tanzania Leaps Ahead in Africa’s Trade Attractiveness Rankings - Tanzania has made a significant leap in its trade attractiveness, now ranking fourth highest in Africa, according to the Standard Bank Africa Trade Barometer released recently...Read more
8. Uganda | Uganda Joins BRICS as Partner Nation - Uganda has officially joined BRICS (Brazil, Russia, India, China, and South Africa) as one of 13 new partner nations in a move set to reshape its international trade and investment prospects. By aligning with the...Read more

Reports

Finance and Investment in Africa | AfDB

This report analyses finance and investment status and trends in Africa, and how these shape the developments in key economic sectors. The focus is on understanding the current state of finance and investment in Africa and identifying opportunities for promoting sustainable finance and investment practices that align with the continent’s economic, ecological, and social potential.

The report highlights the essential need for Africa to adopt sustainable development pathways that acknowledge the significant role of the continent’s natural capital in ensuring long-term prosperity.

Click here to download and read the full report.?

A Prosperous and Sustainable Africa and Europe | NEPAD

The report provides a concise overview of the progress made in delivering on the commitments from the 6th EU-AU Summit, under the “Joint Vision for 2030” aimed at a prosperous and sustainable Africa and Europe. It highlights alignment with AU’s Agenda 2063 and the UN’s Sustainable Development Goals (SDGs), with progress tracked through consultations and reviews by key EU and AU bodies.

Click here to download and read the full report.?

Estimating Investment Needs for the Power Sector in Africa 2023-2030 | AfDB

This study contributes to the ongoing dialogue about the costs and implications of tackling the African continent's two critical energy challenges: achieving universal access to electricity in alignment with Sustainable Development Goal 7 and expanding power systems to foster economic growth while avoiding a high-emissions trajectory.

Specifically, the study aims to derive insights from economic least-cost expansion modelling to: estimate economic least-cost investment requirements and related emissions; and explore existing structural barriers to and enablers of the energy transition.

Click here to download and read the full report.?

2024 M&A Report | BCG

Dealmaking in Africa has stabilised in 2024, ending the downward trend that followed the post-pandemic peak in 2021. Larger-than-usual deals are the primary drivers of this stabilisation, even as deal volume remains significantly below historical levels.

Looking ahead, BCG’s M&A Sentiment Index indicates stable sentiment among dealmakers globally. In Africa, several key factors will shape the prospects for Mergers & Acquisitions (M&A), including rapidly developing economies, securing materials for sustainable technologies increasing risk of slowing growth among other factors. Most industries will participate in the recovery, especially media, energy, and materials sectors

Click here to download and read the full report.?

Thank you for being a part of our community, and we hope you find this edition of the Africa Bulletin informative and inspiring.