The Just Transition was central to discussions during the just concluded Finance in Common Summit 2025. 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.
Global leaders, policymakers, and development finance institutions gathered in Cape Town against the iconic backdrop of Table Mountain 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, stressed 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 while 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, 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.
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 not just our economies but the lives of millions of people. Imagine a farmer in the Sahel watching their crops wither under relentless drought or a mother in Mozambique rebuilding her home for the third time after severe flooding. These are not abstract statistics--they are lived realities."
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 a unique 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 step up and invest in Africa's green economy."
Mokaddem reinforced this call, stating, "This is not just about reducing emissions. It is about securing Africa's future--creating jobs, driving industrialisation, and ensuring no one is left behind. The time to act is now."
