African climate and policy experts are calling for urgent reforms to regulations and funding mechanisms surrounding climate issues. Speaking at the Africa Climate Roundtable, they warned that current frameworks risk slowing investment, weakening industrialization, and diminishing Africa’s global competitiveness in the crucial climate financing sector.
Catalyzing Investment While Protecting Domestic Industries
Professor George Nwangwu, Convener of the Africa Climate Forum, emphasized that regulations must be strategically designed to not only attract investment but also to safeguard domestic industries and ensure equitable economic outcomes for African nations. As global competition for capital intensifies, he argued, African countries need to adopt more enabling and forward-thinking regulatory environments.
“Regulation is always very important. It can either catalyse investment and trade, or it can be a barrier to trade and investments,” Prof. Nwangwu stated. He highlighted the increasing global competition for capital, underscoring the necessity for Africa to implement regulations that actively encourage investment within the continent.
Prof. Nwangwu cautioned against prioritizing investment attraction at the expense of local economic protection. He warned that inadequate policy frameworks could exacerbate dependency on external value chains, hindering local development.
Rethinking Africa’s Trade Structure and Value Creation
Addressing Africa’s trade structure, Prof. Nwangwu criticized the continent’s persistent reliance on raw commodity exports. He explained that this model limits value creation and stifles industrial expansion, stressing the need for enhanced local processing capabilities across African economies.
“We must ensure that regulations also protect our own industries. As much as we want investment, we want good investments and fair deals that protect our jobs and protect our economies,” he elaborated. He used the example of Ghana exporting cocoa beans only to import finished chocolate products, illustrating how capital is effectively exported.
“We should be able to create those finished products here so that we can grow our economies a lot better,” Prof. Nwangwu urged, advocating for greater domestic value addition.
Seizing Climate Finance Opportunities and Ensuring Compliance
Dr. Ing. Shelter Lotsu, CEO of TSA Sustainability, highlighted the critical need for African businesses to actively position themselves to capitalize on emerging climate finance opportunities. This is particularly relevant as governments, like Ghana with its Green Taxonomy, roll out new policy frameworks.
Dr. Lotsu pointed out that Africa currently secures a minimal share of global climate funding, estimating it at just one percent of the multi-billion dollar global pool. He called for intensified collaboration between businesses, policymakers, and financial institutions to bridge this gap.
The growing importance of sustainability compliance was also a key point. Dr. Lotsu warned that environmental reporting is rapidly becoming a mandatory requirement for companies worldwide. Firms must adapt to new emissions reporting standards and accelerate their transition towards cleaner energy systems.
“If you are emitting a lot of carbon into the atmosphere, it is your responsibility to take action. Next year, it is going to be mandatory for companies to report in accordance with international standards on Scope 1 and Scope 2 emissions,” he stated, emphasizing the impending regulatory landscape.
Looking Ahead: Continental Forum and Actionable Frameworks
The discussions held at the Accra roundtable are set to inform a larger continental forum scheduled for Abuja in October 2026. This upcoming event aims to consolidate stakeholder input into concrete policy and financing frameworks designed to drive Africa’s climate and economic transformation agenda.
The focus will be on developing strategies that not only attract international climate finance but also ensure it fosters sustainable industrial development, creates local jobs, and enhances the continent’s overall economic resilience and global standing in the green economy.
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