In summary:
Green bonds drive financing for clean energy and climate change projects across Africa. Major issuers attract strong confidence from domestic and foreign investors. The issuance strengthens the sustainable financial framework and market credibility. Green bonds support long-term economic resilience and climate adaptation.
Deep dive!!
Monday, December 22, 2025 – Green bonds are bonds whose proceeds are earmarked for environmentally beneficial projects such as renewable energy, climate-adaptive infrastructure, and sustainable urban development. Although Africa will account for a small share of global green bond issuance in 2024-2025, with total adjusted issuance of approximately USD 1.35 billion in 2024, well below the peak levels seen previously, activity continues to be concentrated in markets with deeper financial systems and strong policy support.
The 2025 publication reflects both sovereign commitment to climate action and innovation at the state and corporate level. Large economies and regional innovators are taking the lead in issuing green bonds, either directly through sovereign bond programs or through sub-sovereign and corporate channels. These instruments not only finance climate-smart projects, but also help develop local capital markets and demonstrate investor confidence in sustainable finance on the continent.
10. Kenya
Kenya’s green bond market has been supported by regulatory guidance, private sector innovation and demonstration deals demonstrating investor appetite for climate-related bonds. The first green bonds were issued in 2019, helping to establish a pipeline for renewable energy and sustainable infrastructure financing, and Kenya will continue to issue or structure deals that support climate-smart investments through the Nairobi capital market by 2025.
Kenya’s increase in issuance reflects broader efforts to incorporate ESG into financial markets, improved guidelines and the creation of a framework that clarifies eligible uses and reporting requirements. Although the total volume remains small compared to peer markets, Kenya’s activity is notable for its role as a frontier for sustainable finance in East Africa.
9. Zambia
Zambia’s Copperbelt Energy Corporation (CEC) has issued one of the country’s first corporate green bonds, raising approximately $200 million to fund sustainable power infrastructure and climate-resilient power systems. This landmark issuance not only diversifies green finance in Southern Africa, but also deepens Zambia’s commitment to sustainability-related instruments.
CEC Green Bonds demonstrate how private sector issuers can leverage bond markets to scale climate change solutions, especially in the context of the energy transition, where electrification and clean power are national priorities. The bond issue will strengthen the activities of sovereign and development banks in building Africa’s green capital markets.
8. Egypt
Egypt’s sustainable finance ecosystem is characterized by momentum from both the state and private sectors, including a notable $500 million sustainability bond issued by the Arab African International Bank, with approximately 75 percent of proceeds earmarked for green projects such as energy efficiency and small-scale renewable energy.
These developments reflect Egypt’s broader climate change goals and institutional capacity to build sustainable measures at scale. While not all revenue is green, Egypt’s combined sustainable bond activities will lead it to surpass many of its peers in terms of total climate-related issuance in 2025.
7. Morocco
Morocco is home to the Nour solar power plant and large-scale renewable energy, which continues to focus investor attention on climate-smart capital instruments. Bonds and blended finance structures related to solar power and renewable infrastructure will mobilize investment to support North Africa’s energy transition and strengthen Morocco’s role as a leader in renewable energy.
While the exact total sovereign green issuance figures for 2025 are emerging, linked structured instruments related to Morocco’s clean energy pipeline are making a significant contribution to the region’s green finance footprint.
6. South Africa
South Africa’s strong capital markets remain central to green bond growth in Africa. Financial institutions such as Nedbank have issued large volumes of green and sustainability-related bonds, including large tranches totaling nearly US$900 million, highlighting the maturity of the market and investor demand.
These bank-led financial products finance renewable energy, sustainable buildings and infrastructure projects, supporting Africa’s largest sustainable debt market in terms of both volume and product diversity. The 2025 South African Corporate Green Issuance demonstrates continued leadership in mobilizing capital at scale for climate-smart investments.
5. Nigeria
Nigeria expanded its sovereign green bond program with the issuance of a £50bn sovereign green bond in June 2025 to finance renewable energy, afforestation and other climate-resilient sectors. This third issuance reflects a sustained policy commitment to embed environmental finance within sovereign debt strategies.
Complementing sovereign activity, local issuers such as Lagos State issued Africa’s first certified local green bonds alongside larger conventional issuances, reinforcing Nigeria’s role as a pioneer in climate-related local bonds. Oversubscription and strong demand highlight investor appetite for ESG products even at the local government level.
4. Ivory Coast
Although specific figures for 2025 green bonds are not readily available, Côte d’Ivoire’s previous $1.1 billion sustainability bond includes green elements and is in line with international standards, placing the country among the top sustainable finance issuers in Africa.
This issuance will help support a broader capital market framework in which ESG-related bonds can finance climate mitigation and adaptation infrastructure, forestry and water projects, increasing the scale and impact of green issuance in West Africa.
3. Senegal
Senegal has secured a highly oversubscribed domestic bond issue in mid-2025, reflecting strong investor confidence and strong demand for public debt. While not exclusively green, our commitment to climate finance and expanding renewable energy puts us in a strong position for future green issuance.
Senegal’s renewable energy expansion under JETP and the Coastal Restoration Program signals a growing orientation towards climate finance that could lead to larger green bonds as frameworks and demand deepen.
2. African Development Bank (Pan-African)
Although not a country, the African Development Bank (AfDB) dominates Africa’s green bond landscape. The company’s €500 million green benchmark and suite of sustainable bonds have funded renewable energy and resilience projects across multiple countries, spurred further issuance, and set pricing and structural benchmarks for African markets.
As the continent’s largest issuer of sustainable debt by value, the AfDB’s continued leadership underpins much of Africa’s 2025 green finance, influencing sovereign and private sector activity.
1. South Africa
Considering both sovereign-related and private sector issuance, South Africa maintains Africa’s largest total green bond market, supported by strong interest from major institutional issuers and investors. Large bank-led green sustainability bond packages continue to set the pace on the continent into 2025.
South Africa’s total issuance, particularly financial instruments amounting to nearly US$900 million, underlines South Africa’s depth and leadership in sustainable finance, making it Africa’s most important source of green bond funding by 2025.
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